S-Reits, property trusts mark their 20th year

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 : A17U 0% 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 : AW9U 0% and Lippo Malls Indonesia Retail Trust, : D5IU 0% which were the world’s first Indonesia healthcare and retail Reit listings respectively, Sasseur Reit, : CRPU 0% which was the world’s first China retail outlet mall Reit, as well as Ascendas India Trust, : CY6U 0%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 : BTOU 0% US Reit, the first data centre Reit – Keppel DC Reit, : AJBU 0% as well as the first hospitality stapled trust – CDL Hospitality Trusts. : J85 0%

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

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

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.