Singapore REIT sector climbs 18.6% on average year-to-date, outperforms STI
It was reported on Sept 20 that Singapore’s 31 real estate investment trusts (REITs) and six stapled trusts averaged a total return of 18.6% in the year to date, according to the Singapore Exchange (SGX). The SGX S-REIT 20 Index - an index of 20 of the largest and most tradeable REITs in Singapore - performed even better on average, gaining 20.4% so far this year. In comparison, the benchmark Straits Times Index has climbed 12.0%.
Sabana Shariah Compliant Industrial REIT leads the gainers with a total return of 34.1% year-to-date, followed by CDL Hospitality Trusts at 32.4% and Viva Industrial Trust at 31.7%. On the other end of the spectrum is Fortune REIT, with a total return of 5.0%. According to SGX, the sector has an average gearing ratio of 34.6%, below the current gearing ratio limit of 45% for Singapore REITs. This is also lower than the gearing ratio of 42.4% for the MSCI World REIT Index.
In addition to the total of 37 REITs and stapled trusts, SGX also currently lists two REIT Exchange Traded Funds (ETF): the Phillip SGX APAC Dividend Leaders REIT ETF and NikkoAM-StraitsTrading Asia ex Japan REIT ETF. Both of these track indices focused on REITs based in the Asia Pacific region.
This story, written by Stanislaus Jude Chan, first appeared on The Edge Singapore.
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