S-Reits - shelter from the storm in H1 2022

THE iEdge S-Reit Index held resilient for the first half of 2022, generating flat total returns compared to the FTSE EPRA Nareit Developed Index (a benchmark for global Reits) which declined 18 per cent.

During the period, the S-Reits and property trusts sector in Singapore saw S$359 million of net institutional outflows and S$447 million of net retail inflows.

Hospitality was the best performing sub-segment in H1 2022. The 5 hospitality trusts averaged 17 per cent total returns and garnered S$62 million of net institutional inflows.

Aside from hospitality trusts, diversified S-Reits and some industrial and retail S-Reits were also among the top performing S-Reits in the first half of 2022. The 9 trusts which outperformed the broader iEdge S-Reit Index in H1 2022 include Frasers Hospitality Trust : ACV 0% (+52.2 per cent), Ascott Residence Trust : HMN 0% (+12.5 per cent), Far East Hospitality Trust : Q5T 0% (+11.3 per cent), CDL Hospitality Trusts : J85 0% (+11.3 per cent), Mapletree North Asia Commercial Trust : RW0U 0% (+11.2 per cent), Suntec Reit : T82U 0% (+10.3 per cent), CapitaLand Integrated Commercial Trust ( : C38U 0%+6.6 per cent), Sabana Industrial Reit : M1GU 0% (+5.9 per cent) and Frasers Centrepoint Trust : J69U 0% (+1.7 per cent).

Lendlease Global Commercial Reit : JYEU 0% was the only S-Reit which received both net institutional and retail inflows for the first half of 2022. It saw S$5 million of net institutional inflows and S$11 million of net retail inflows.

While the first quarter of the year was largely driven by hospitality trusts and the reopening theme, performance was mixed in Q2 2022. The 5 best performing trusts in Q2 2022 include Frasers Hospitality Trust (+32.3 per cent), ParkwayLife Reit : C2PU 0% (+3.6 per cent), Lendlease Global Commercial Reit (+2.6 per cent), Dasin Retail Trust : CEDU 0% (+1.6 per cent) and Ascott Residence Trust (+0.9 per cent).

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The iEdge S-Reit Index dipped 1.3 per cent in total returns in Q2 2022 while the sector as a whole saw S$173 million of net institutional outflows and S$282 million of net retail inflows. ESR-Logos Reit : J91U 0% was the only S-Reit which received both net institutional and retail inflows for Q1 2022. It saw S$2 million of net institutional inflows and S$10 million of net retail inflows.

Inflows into the 5 SGX-listed Reit exchange traded funds (ETFs) hit a record in June 2022, with S$60 million of inflows over the month. This topped the previous record inflow of S$34 million in March 2020, near the start of the Covid-19 pandemic. Across H1 2022, the 5 ETFs received S$113 million of inflows and saw combined asset under management (AUM) rising S$63 million, hitting S$874 million as at end June. 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.