SGX's S-Reit Index notches up total return of 9.4% YTD

Singapore

SINGAPORE Exchange's S-Reit Index that comprises 37 constituents with a combined market value of S$71 billion has chalked up a total return of 9.4 per cent year-to-date and with that, has outperformed both the S&P Asia Pacific Reit Index and MSCI World Reit Index.

In Singapore dollar terms, the S&P Asia Pacific Reit Index and MSCI World Reit Index generated total returns of 2.3 per cent and 1.9 per cent respectively, according to SGX My Gateway.

These trusts - 28 real-estate investment trusts, six stapled trusts and three property trusts - averaged a year-to-date return of 8.1 per cent while maintaining an average distribution yield of 6.7 per cent.

The top performers over the period were Sabana Shari'ah Compliant Industrial Reit (+35.9 per cent), Croesus Retail Trust (+15.5 per cent), CDL Hospitality Trusts (+13.7 per cent), Ascendas Reit (+13.7 per cent) and Mapletree Commercial Trust (+11.7 per cent), said the investor education portal.

In terms of valuations, these trusts averaged price-to-earnings (P/E) and price-to-book (P/B) ratios of 26.3 and 1.0 respectively, and a Return on Equity (ROE) of 6.1 per cent.

The sector kicked off its quarter to March earnings reporting season this week with SPH Reit releasing its second quarter FY2017 report card on Monday and Soilbuild Business Space Reit issuing its first quarter report on Wednesday.

Another 12 Reits are expected to release earnings next week.

The confirmed ones for the week ahead include Keppel DC Reit, First Reit, Capitaland Commercial Trust, Keppel Reit, Cache Logistics Trust, CapitaLand Mall Trust, Ascott Residence Trust, CapitaLand Retail China Trust, Frasers Commercial Trust, Starhill Global Reit and Suntec Reit.

Sabana Reit is estimated to release its results on Tuesday because its manager is facing a unitholder revolt that will culminate in a special meeting on April 28.