Real estate investment trusts in Singapore (S-REITs) have rebounded strongly over the past two weeks in line with the broader recovery in the Singapore market following the sell-off in early April.
As of Thursday’s (April 24) close, the iEdge S-REIT index has climbed 5.9% since April 11, with all 30 constituents ending flat or higher. S-REITs with international exposure as well as those holding hospitality assets ranked among the top performers.
Over the past two weeks, the top 10 performers in the iEdge S-REIT index mostly saw net institutional inflows, with these counters receiving a combined S$23.3 million in net institutional inflows from April 14 to 24.
However, institutional and retail investors were net sellers of the broader S-REITs sector over the same period. From April 14 to 24, institutional investors net sold S$36.6 million in in S-REITs, bringing their total net outflows for the sector to S$465.1 million for the year-to-date.
Meanwhile, retail investors net sold S$64.4 million over the same period, reversing net buying activity earlier this month. For the year-to-date, retail investors remain net buyers of the S-REITs sector, with total net inflows of S$261.9 million
1. $CapLand China T(AU8U.SI)$
CapitaLand China Trust (CLCT) ranked among the top three iEdge S-REIT index constituents over the past two weeks, with its units rising over 11% from April 14 to April 24.
CLCT’s Q1 business update on April 24 showed that it maintained high occupancy for its retail portfolio of 97.7%, with positive rental reversions of 0.5%.
The REIT’s business parks also had stable occupancy of 83.7%, while logistics parks saw 95.7% occupancy.
The CEO of CLCT’s Manager noted in a recent SGX kopi-C interview that CLCT’s malls mainly serve China's middle-income consumers, and the tenants have little dependence on US-imported products. He added that although US tariffs have introduced volatility to capital markets, the direct impact on CLCT's operations remains minimal.
2. $Mapletree Log Tr(M44U.SI)$
Elsewhere, Mapletree Logistics Trust (MLT) full-year results, released on April 23, showed stable operating performance with 96.2% occupancy as of end March, and positive rental reversion of 5.1% for the fourth quarter.
The Reit recorded positive rental reversions in all markets except China. MLT’s manager noted that the diversified portfolio mitigated headwinds from higher borrowing costs and China weakness.
MLT’s manager added that the changing trade policy landscape is unprecedented and evolving and tenants are expected to take a cautious approach to leasing and expansion in the short term. However, the majority of MLT’s tenants are serving local domestic consumption, accounting for around 85% of portfolio revenue as of its fourth quarter.
MLT’s units rebounded 7.4% from April 14 to 24, ranking it among the top 10 index performers.
3. $Suntec Reit(T82U.SI)$
Similarly, Suntec Reit units also gained 7.4% over the same period.
Suntec Reit, which also announced its Q1 business update on April 24, reported improved distributable income (DI) for the period ended March, rising 4.3% on year to S$45.9 million. Distribution per unit was also 3.4% higher year-on-year for the first quarter.
The manager noted that DI was improved due to lower financing costs as well as better operating performance, with all properties, except for 55 Currie Street, Adelaide, registering stronger operating performance.
Some 13 S-REITs have already released their financial results or business updates for the financial period ending March. Another 12 S-REITs are expected to release their latest filings this week, including STI constituents $CapLand Ascendas REIT(A17U.SI)$ $Mapletree Ind Tr(ME8U.SI)$ $Frasers Cpt Tr(J69U.SI)$.
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