Bookmark & Share
From January to 4 August 2017, all 31 real estate investment trusts (Reits) and six stapled trusts listed on Singapore Exchange (SGX) registered an average total return of 17.6 percent.
In a release, SGX noted that total returns ranged from eight percent for Fortune Reit to 30 percent for CDL Hospitality Trusts.
With cumulative inflows totalling S$133.6 million, institutions emerged as net buyers of the Reit sector for the last four consecutive months.
In the first 31 weeks of the year, the SGX Reit 20 Index generated a total return of 18.8 percent, up from the 16 percent posted over the same period last year.
“The 2017 year-to-date return was achieved with less volatility than observed for the same period last year,” said SGX.
Ascendas Reit, Singapore’s biggest Reit by market capitalisation, noted that the United States Federal Reserve remained dovish in its recent policy statement in view of weakening US inflation data.
It also noted that the possibility of another interest rate hike by end-2017 have dimmed. With interest rates unlikely to increase as fast as expected, impact on distribution per unit (DPU) may be lower, it added.
Currently, SGX lists two REIT Exchange Traded Funds (ETFs) – the NikkoAM-StraitsTrading Asia ex Japan REIT ETF and Phillip SGX APAC Dividend Leaders REIT ETF, which were listed in March 2017 and October 2016, respectively.
“From their launch to 4 August, the Phillip SGX APAC Dividend Leaders REIT ETF has generated a 5.4 percent total return [or 7.8 percent in USD] and the NikkoAM-StraitsTrading Asia ex Japan REIT ETF has generated a 8.7 percent total return,” said the exchange.
This article was edited by Denise Djong.
Related Articles:
Keppel DC REIT posts strong results in Q2