4 Quick Things Investors Should Learn About Singapore-Listed REITs

Do you own a Real Estate Investment Trust (REIT)?

If you do, a recent report prepared by bourse operator Singapore Exchange might be of interest to you. From it, you can get a sense of how each REIT stacks up against the rest.

There are a total of 28 REITs and six stapled trusts listed in Singapore’s stock market. Here are some of the trusts’ statistics (as of 24 November 2015) which may be of interest:

  1. The average price to book ratio and indicative yields for the trust are 0.9 and 7.2%, respectively. Lippo Malls Indonesia Retail Trust (SGX: D5IU) had the highest yield at 9.9%. The high yield offered may be due to the current uncertainty around a possible delisting of the REIT by its sponsor. At the other end of the spectrum, Viva Industrial Trust (SGX: T8B) only offered a yield of 5.4%.
  2. The largest REIT by market capitalisation goes to CapitaLand Mall Trust (SGX: C38U) at $6.7 billion. This is followed by Ascendas Real Estate Investment Trust (SGX: A17U) and Suntec Real Estate Investment Trust (SGX: T82U) at $5.6 billion and $3.9 billion, respectively. The smallest would be Saizen Real Estate Investment Trust (SGX: T8JU), which has a market cap of only $311 million.
  3. Ascott Residence Trust (SGX: A68U) is considered to be the most internationalized REIT with a presence in 14 countries. The most popular countries where Singapore REITs have a presence in are Mainland China, Japan, and Malaysia. Mapletree Logistics Trust (SGX: M44U) happens to have properties in all three countries mentioned.
  4. If the share price of your REITs are down for the year, do not fret. The 34 trusts had posted a total average decline of 2.4% since the start of 2015. Notably, the Straits Times Index (SGX: ^STI) has retreated by over 13% over the same period. The top REIT performers this year are Saizen REIT, Fortune Real Estate Investment Trust (SGX: F25U)Keppel DC REIT (SGX: AJBU)Mapletree Industrial Trust (SGX: ME8U) and Soilbuild Business Space REIT (SGX: SV3U). Saizen REIT’s price had benefitted from the REIT’s acceptance of an offer for its entire Japan property portfolio this year.

The statistics above may help you put into context the performance, valuation, size, and geographical exposure of your own REIT holdings.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Chin Hui Leong owns shares in Mapletree Logistics Trust and Suntec REIT.