Early market evidence, pricing and the first exit test

Small and medium REITs have gone from a regulatory idea to a live and listed segment in under 3 years. Investors can now choose a specific property and micromarket instead of a diversified portfolio, which is the product’s biggest appeal and also what sets it apart from the mainstream REITs.

The question no one asks has always been what happens at the end. Listing is the relatively easier part - a real exit shows whether the trading price numbers on the screen can become real value for investors. In our October note, we look at what the early evidence from the three listed schemes says, how SM REITs compare with large REITs and a development this month that may matter more than new listings.