THIS year marks the 20th anniversary of the Singapore S-Reits and property trust sector with the first Reit - CapitaLand Mall Trust - listed in July 2002, followed by Ascendas Reit in November 2002. (See amendment note.)
Since then, the sector has evolved into the largest Reit market in Asia ex-Japan, with a mature ecosystem. As of end June 2022, Singapore lists 43 S-Reits with total market value exceeding S$110 billion and average dividend yield of 6.4 per cent. The sector's market value has grown at a compounded annual growth rate of 13 per cent over the last 10 years.
Singapore Reits have also expanded and diversified beyond Singapore shores. Starting out with mainly local assets and a domestic investor base 20 years ago, the sector has evolved into a global Reit hub today with active international investor participation and foreign asset listings. To date, more than 80 per cent of the 43 S-Reits and property trusts hold overseas assets.
The sector has also welcomed many inaugural Reit listings with assets across various geographies and sub-sectors. Examples include First Reit and Lippo Malls Indonesia Retail Trust, which were the world's first Indonesia healthcare and retail Reit listings respectively, Sasseur Reit, which was the world's first China retail outlet mall Reit, as well as Ascendas India Trust, which was the world's first India business park Reit.
Within Asia, the industry also welcomed the first Reit with pure US-located assets - Manulife US Reit, the first data centre Reit - Keppel DC Reit, as well as the first hospitality stapled trust - CDL Hospitality Trusts.
As the ecosystem evolves, more listed products such as derivatives and exchange traded funds (ETFs) were launched on the asset class, allowing new segments of investors to participate. There are now 5 Reit ETFs with combined assets under management of more than S$870 million as well as Asia's first international Reit futures listed on the SGX. SGX RESEARCH
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.
Amendment note: This article has been amended to reflect the correct listing year of Ascendas Reit.