In the first half of 2023, the iEdge S-Reit Index gained 2.1 per cent in total return terms, after a challenging 2022 which saw it decline 12 per cent.

Retail investors continued to be a key driver in S-Reits fund flow activities in H1 2023, accumulating net retail inflows of S$389 million, while institutional investors saw net outflows of S$485 million. A similar trend was seen a year ago during H1 2022 when the sector booked S$443 million of net retail inflows and S$360 million net institutional outflows.

By sub-segments, data centre S-Reits received the most institutional net inflows and retail net outflows in H1 2023, at S$26 million and S$43 million respectively. On the other hand, diversified S-Reits saw the most institutional net outflows during the period at S$348 million, while seeing S$280 million of net retail outflow.

Keppel DC Reit : AJBU 0% (KDCReit) was the best performing S-Reit in the first half of 2023 with 25 per cent total returns. It also received the most net institutional inflows in H1 2023 of S$36 million. This was a reversal from a year ago, during H1 2022, where institutional investors were net sellers of the stock with net outflows of S$120 million.

KDCReit’s Q1 2023 net property income grew 6.3 per cent, translating to a 3 per cent growth in distribution per unit for the period. It believes that data centre demand will continue to be driven by long-term trends such as adoption of cloud computing and digital transformation initiatives. It is expected to report H1 2023 results on Jul 24, 2023.

Paragon Reit : SK6U 0% booked the second largest net institutional inflows of S$20 million in H1 2023. Institutional investors continued to be net buyers of the Reit following net inflows of S$1 million in H1 2022.

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Aside from Paragon Reit, CapitaLand Ascott Trust : HMN 0% and Sabana Industrial Reit : M1GU 0% also saw significant net inflow from institutional investors in both the H1 2023 and H1 2022 periods.

CapitaLand Ascott Trust received net institutional inflows of S$17 million and S$41 million in H1 2023 and H1 2022 respectively while Sabana Industrial Reit received net institutional inflows of S$5 million and S$9 million in H1 2023 and H1 2022 respectively.

S-Reits which received the most net inflows from retail investors in H1 2023 were Suntec Reit : T82U 0% at S$140 million, Lendlease Global Commercial Reit : JYEU 0% (LReit) at S$57 million and Keppel Reit : K71U 0% at S$52 million. LReit booked net inflows from retail investors during the year-ago period as well, receiving S$11 million in H1 2022. 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 SReits & Property Trusts Chartbook.

Source: SGX Research S-Reits & Property Trusts Chartbook