SGX S-REIT 20 Index has gained 7% in 2016 YTD

OREANDA-NEWS. Real Estate Investment Trusts (REITs) raise capital to purchase primarily real estate assets, usually with a view to generating income for unit holders of the fund. This allows individual investors to access real property assets, and share the benefits and risks of owning a portfolio of properties, which typically distribute income at regular intervals.  

As discussed last week, the SGX S-REIT 20 Index is an adjusted free-float market capitalisation-weighted index that measures the performance of the 20 largest and most tradable REITs listed on SGX and is a narrow, tradable and well-diversified portfolio allowing highly efficient access into the listed REIT segment in Singapore. The SGX S-REIT 20 Index, which consists of 20 constituents, have a combined market capitalisation of S$52.0 billion. In the year thus far, the Index has gained 6.5% in total return. This compared to an average return of 3.5% for Singapore’s 35 trusts that represent the REITS sector as defined by the Global Industry Classification Standard (GICS®). The SGX S-REIT 20 Index maintains a dividend yield of 6.3% compared to Bloomberg Asia REIT Index dividend yield of 4.6%.

REITs Earning Schedule

In the next four weeks, as many as 32 trusts from the GICS ® Real Estate Investment Trust (REIT) Sector are expected to  release their earnings for the latest financial quarter. 

SPH REIT released its FY2016 second quarter earnings last Monday, announcing a 0.9% YoY increase in net property income. The REIT’s portfolio as at 31 August 2015 comprised two retail properties totalling S$3.2 billion in value. 

Please note that the stapled securities in the table below are CDL Hospitality Trusts, Far East Hospitality Trust, Frasers Hospitality Trust, OUE Hospitality Trust, Ascendas Hospitality Trust and Viva Industrial Trust.  Securities are referred to as stapled trusts as the one listed security is made up of two trusts - a REIT and a Business Trust. The table below details the confirmed and estimated dates when Singapore trusts release their earnings. Note that clicking on a trust name will take you to its relevant page on SGX StockFacts.

Source: SGX, Bloomberg & SGX StockFacts (data as of 8 April 2016), * Saizen Real Estate Investment Trust announced a special distribution of SGD 1.056 per unit to unitholders which went ex-dividend on 11 March.

The 35 trusts averaged a dividend yield of 7.3%. Of the 35 trusts, the five highest yielding trusts have been Cache Logistics Trust (9.9%), Viva Industrial Trust (9.8%), OUE Hospitality Trust (9.8%), Lippo Malls Indonesia Retail Trust (9.4%) and Sabana Shari'ah Compliant Industrial REIT (9.2%).