Travel rebound, SGD strength to keep S-Reits resilient

SINGAPORE-LISTED real estate investments trusts (S-Reits) have held up admirably despite market volatility in the face of rising interest rates, lingering Covid-19 concerns and a protracted Russia-Ukraine conflict with no resolution in sight. They look likely to remain a “safe haven”, on the back of Singapore’s reopening story.

The FTSE ST Real Estate Investment Trusts Index (FSTREI) in April dipped 0.8 per cent month on month, compared with a 1.5 per cent decline in the benchmark Straits Times Index (STI).

The outperformance was led by a 7.5 per cent month-on-month gain among hospitality Reits during the month. Hospitality Reits had also surged by 14.4 per cent month on month in March, after Singapore announced the lifting of most Covid-related restrictions.