The SGX S-REIT Index comprises 28 real estate investment trusts (REITs), six stapled trusts, and three property trusts.
A recent report by bourse operator Singapore Exchange provided insight into the SGX S-REIT Index. The information provided includes the total returns of the individual components over a three-year period. Here are the five constituents of the SGX S-REIT Index that have the best three-year total return (data as of 9 May 2017 unless otherwise stated):
1. Ascendas India Trust (CY6U) recorded a total return of 90.1% over the past three years. The trust owns seven information technology (IT) parks in India and has a market cap of $1.16 billion.
2. RHT Health Trust (SGX: RF1U) is in second place with a three-year total return of 88.3%. The business trust, which has a market cap of $786 million, owns 12 clinical establishments, two hospitals, and four greenfield clinical establishments. These assets are located throughout India.
3. Mapletree Greater China Commercial Trust (SGX: RW0U) lands in third place with a total return of 50.6%. The REIT has three commercial/retail properties that are located in Hong Kong and China. The REIT has a market cap of $2.9 billion.
4. Fourth place belongs to Mapletree Industrial Trust (SGX: ME8U). The REIT holds 86 industrial properties in its portfolio (all located in Singapore) and has recorded a three-year total return of 49%. It has a market cap of $3.2 billion.
5. Croesus Retail Trust (SGX: S6NU) rounds out the top five with a total return of 43.7%. The business trust has a market cap of $759 million. It currently owns 11 retail properties that are all in Japan.
Looking back helps us understand how certain REITs and trusts have fared over the past three years. Not all trusts which have done well will continue to do well, but there may be merit behind some of the trusts with higher returns. Investors should determine which trusts are worth following from there.
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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice.The Motley Fool Singapore has recommended shares of Singapore Exchange. Motley Fool Singapore contributor Chin Hui Leong doesn’t own shares in any companies mentioned.