TWENTY-SEVEN out of 41 Singapore real estate investment trusts and property trusts (S-Reits) have confirmed the release of their financial results or business updates for the respective periods ended Mar 31, 2024. Of those, 19 will report business updates and eight will report financial results.

Sabana Industrial Reit : M1GU 0% (Sabana Reit) kicked off the current financial reporting season for S-Reits with the release of its first-quarter business updates last week. The Reit’s portfolio occupancy fell to 83 per cent in the first quarter ended Mar 31, 2024, from 91.2 per cent in Q4, 2023.

Its rental reversion rose to 23.7 per cent in Q1 from 6.2 per cent the previous quarter, maintaining its positive quarterly rental reversion streak since 2021, with new and renewed leases totalling 139,426 square feet (sq ft) – an increase from the 42,651 sq ft noted in the previous period.

The Reit was also awarded its first Building and Construction Authority (BCA) Green Mark Super Low Energy certificate based on the Green Mark Criteria for Green Mark 2021. “With the progress of our sustainability journey, we are well positioned to capitalise on alternative solar energy as we expect potential energy price volatility in view of the Middle East conflict,” Donald Han, CEO of Sabana Reit’s manager, said in the update.

Keppel Pacific Oak US Reit : CMOU 0% reported a 0.8 per cent year-on-year decline in net property income (NPI) in the first quarter ended Mar 31, 2024 to US$21 million, from US$21.2 million in Q1 2023.

It also had an 8.8 per cent year-on-year decline in income available for distribution for Q1 2024 to US$11.9 million from Q1 2023’s US$13.1 million. This was mainly due to higher financing cost as a result of higher interest rates. Its gross revenue was flat year on year at US$37.1 million.

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S-Reits continue to draw investors’ attention, especially with high anticipation over when the US Federal Reserve will start cutting its rates. After the Fed – in its March meeting – projected that it will cut rates by 75 basis points this year, expectations have since fallen. This is especially as the US economy showed elevated inflation persisting above the central bank’s target, along with an increase in manufacturing output as well as ongoing geopolitical tensions in the Middle East.

For Q1 2024, institutional investors net sold S$548 million worth of S-Reits while retail investors continued to net buy the sector at S$486 million.

The writer is a research analyst at SGX. For more research and information on Singapore’s Reit sector, visit sgx.com/research-education/sectors for the monthly S-Reits & Property Trusts Chartbook.

Source: SGX Research S-Reits & Property Trusts Chartbook