Why own S-Reits, why not own HK developers?

Singaporeans are familar with S-Reits, especially since S-Reits has been a good asset class to own in last decade till 2022.

However, in the current high interest rate environment, S-Reits share price have been falling recently. Similarly, HK developers share price also have been falling. 

Currently, some HK developers may be offerring higher yield with lower leverage, compared to S-Reits. 

Let's compare with same examples.

NikkoAM-StraitsTrading Asia ex Japan Reit ETF (CFA.SI)

Current share price: 0.745

Dividend Yield: 6.3%

HongKong Land (H78.SI)

Current share price: USD$2.90

Dividend: USD$0.22

Dividend Yield: 7.6%

Gearing ratio (from its FY2023 slides): 17%

Hang Lung Properties (101.HK)

Current share price: HKD$8.17

Dividend: HKD$0.78

Dividend Yield: 9.5%

Gearing ratio (from its FY2023 slides): 31.9%

Note: I have shares in Hongkong Land and Hang Lung Properties.

Both Hongkong Land and Hang Lung Properties are developing new malls/offices/hotels in China; they will be progressively completed between 2024 - 2030. So, their recurrent rental income could rise in coming years. 

Thus, compared to S-Reits, it could be more worthwhile to hold HK developers with higher yield and lower leverage.