S-Reits generate 6% total returns in 2021 to date

WITH two more trading weeks left for the year, the benchmark Straits Times Index has gained 13 per cent in total returns in 2021 to date (as at Dec 15, 2021). All sectors in the Singapore market have yielded positive total returns led by the energy (63 per cent), financials (30 per cent) and technology (29 per cent) sectors.

In 2021 to date, S-Reits have generated 6 per cent total returns, after returning -0.7 per cent the year before. Within S-Reits, the 3 best performing sub-industries are healthcare Reits (35.8 per cent), office Reits (10.1 per cent) and retail Reits (9.6 per cent).

Retail investors have been a key driver in S-Reits' fund flow activities over the last 11 months, accumulating net retail inflows of S$1.1 billion while institutional investors have seen net outflows of S$860 million for the sector.

2021 also saw S-Reits pick up on asset acquisitions with total purchase considerations exceeding S$11 billion across 11 months.

Several acquisitions include maiden forays and expanded mandates into new geographic and industry segments.

First Reit AW9U : AW9U 0%, the best performing S-Reit in the year to date with 56.6 per cent total returns, announced its new First Reit 2.0 Growth Strategy following its corporate restructuring. The Reit also recently announced the proposed acquisition of 12 nursing homes in Japan from its sponsor, OUE Lippo Healthcare, for S$163.5 million.

A NEWSLETTER FOR YOU

Tuesday, 12 pm

Property Insights

Get an exclusive analysis of real estate and property news in Singapore and beyond.

Sign Up

2021 also welcomed two new S-Reit listings Daiwa House Logistics Trust and Digital Core Reit DCRU, further entrenching the sector's geographical and segmental diversification. Daiwa House Logistics Trust, with an IPO portfolio of 14 logistics properties in Japan, is the only S-Reit with pure Japanese assets. Digital Core Reit is a pure-play data centre Reit with an IPO portfolio of 10 institutional quality freehold data centres located in the United States. Following the listings, there are now a total of 44 listed S-Reits & property trusts with a combined market capitalisation exceeding S$110 billion. SGX RESEARCH

• 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.