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Any Idea How Good Your REIT Investments Are? Here’s 1 Good Way to Find Out

Credit: Simon Cunningham

Yesterday, bourse operator Singapore Exchange Limited (SGX: S68) had launched SGX Thematic Indices, a suite of new stock market benchmarks for a number of different sectors in Singapore’s stock market.

Among the new indices launched was the SGX S-REIT 20 Index, an index made up of 20 of the largest and most tradeable real estate investment trusts in Singapore.

Here’s a list of the Top 5 REITs in the index along with their index-weights as of November 2015, according to the Singapore Exchange:

  • Suntec Real Estate Investment Trust (SGX: T82U) – 10.52%
  • CapitaLand Commercial Trust (SGX: C61U) – 10.14%
  • CapitaLand Mall Trust (SGX: C38U) – 9.94%
  • Ascendas Real Estate Investment Trust (SGX: A17U) – 9.93%
  • Mapletree Greater China Commercial Trust (SGX: RW0U) – 6.88%

Given its profile, I thought the SGX S-REIT 20 index can be a good benchmark for investors to compare against their own REITs to see how good their investments are. So, with the help of S&P Capital IQ, here are some of the important details about the fundamentals of the SGX S-REIT 20 Index (REITs in the index without sufficient historical data are not included in the calculations):

  • Simple-average compound annual growth rate in distribution per unit (DPU) over past three years: 2.49%
  • Simple-average compound annual growth rate in book value over past three years: 2.77%
  • Simple-average distribution yield: 6.96%
  • Simple-average price-to-book ratio: 0.90

How does your own REIT investments stack up against the index’s figures? Let me know in the comments section below!

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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 writer Chong Ser Jing does not own shares in any companies mentioned.