New Reit index by SGX and UOBAM tracks environmentally positive Reits

Benjamin Cher

Published Fri, Oct 15, 2021 · 01:38 PM

A NEW real estate investment trust (Reit) index that tracks environmentally-positive Reits was launched on Friday (Oct 15) by the Singapore Exchange (SGX) and UOB Asset Management (UOBAM).

Named the iEdge-UOB APAC Green Reit Index, it will cover 50 higher-yielding Reits across the Asia-Pacific region with better environmental performance relative to its peers. This will be based on the GRESB assessment framework and data, while also meeting liquidity requirements.

Formerly known as the Global Real Estate Sustainability Benchmark, GRESB is a provider of environmental, social and corporate governance (ESG) research on assets covering over 1,500 property companies, Reits, funds and developers with US$5.7 trillion in assets under management.

"While investors are keen to put their money in quality companies that are sustainable and score highly on ESG metrics, data on the companies' ESG performance can be difficult to discern," said Thio Boon Kiat, UOBAM's chief executive officer.

Reits will be weighted based on their relative environmental performance in indicators such as energy and water consumption, greenhouse-gas emissions and green building certifications as well as their ESG performance.

"This new index in partnership with UOBAM and GRESB is uniquely underpinned by Singapore's position as the most international Reit hub globally, and we look forward to this index becoming investible for market participants who are increasingly environmentally focused," said Ng Kin Yee, managing director and head of data, connectivity and indices, SGX.