Eleven of Singapore's smaller Reits enter FTSE EPRA Nareit Global Real Estate Index

ELEVEN of Singapore's smaller Reits have made it into the FTSE EPRA Nareit Global Real Estate Index series, according to the index series' quarterly review changes announced by FTSE Russell on Sept 1.

The entries into the FTSE EPRA Nareit Global Developed Index include AIMS APAC Reit, ARA Logos Logistics Trust, Cromwell European Reit, ESR-Reit, Far East Hospitality Trust, Keppel Pacific Oak US Reit, Lendlease Global Commercial Reit, OUE Commercial Reit, Prime US Reit, SPH Reit and Starhill Global Reit.

FTSE Russell noted that the increased number of additions this quarter was due to the updated thresholds for the Developed Asia series.

In June, the investable market cap threshold was lowered to 0.1 per cent of the securities' respective regional index for additions to the Developed Asia series, compared to 0.3 per cent previously. For deletions from the index series, the threshold was lowered to 0.05 per cent from 0.15 per cent.

Managers of various Reits said in their respective bourse filings on Thursday that inclusion in the index is a milestone and will enhance their trading liquidity and visibility to investors worldwide.

David Snyder, the chief executive and chief investment officer of Keppel Pacific Oak US Reit's manager, also noted that the inclusion complements its plans to "establish itself as the preferred choice for US office S-Reit investors seeking exposure to the fast-growing technology sector".

Meanwhile, Barbara Cambon, chief executive and chief investment officer of Prime US Reit's manager, added that the Reit will continue diversifying and deepening its unitholder base to promote its image as a "prudently-managed, resilient Reit with Class A assets in market where corporate America wants to grow".

The review may be subject to changes until the close of business on Sept 3, and all constituent changes will be applied after the close of business on Sept 17.

The index series, which tracks the performance of listed real estate companies and Reits, is a global benchmark jointly developed by FTSE Russell with the EPRA (European Public Real Estate Association) and the Nareit (National Association of Real Estate Investment Trusts).

Prior to the review, there were 17 Singapore Reits and property trusts in the FTSE EPRA Nareit Developed Index, according to the index's factsheet as at July 30, 2021.

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