OVER the past year, Singapore Reits (S-Reits) have significantly underperformed the Straits Times Index (STI).
S-Reits recorded a negative total return of -12 per cent during the period, trailing the STI’s positive returns of 2 per cent as at Aug 18, 2023.
The S-Reit earnings season recently concluded. Many S-Reits reported disappointing results for the first half of the year. Only hospitality S-Reits achieved positive distribution per unit (DPU) growth year on year on average, helped by an ongoing travel recovery.
Meanwhile, all other sectors delivered an average growth rate in the negative territory, mainly attributed to higher interest expense due to rising interest rates.
Among hospitality...
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