The FTSE ST Real Estate Investment Trusts (FTSE ST REIT Index) increased by 1.12% in June, rising from 631.68 to 638.78. Despite this growth, the Singapore REIT sector remains slightly undervalued, trading at a 24% discount to its fair value, with an average trailing twelve-month yield of 6.03%.
*Top Performers:*
- *Frasers Hospitality Trust*: delivered a total return of 21.4% year-to-date
- *CapitaLand Integrated Commercial Trust*: gained 13.8% year-to-date with a solid 5.0% dividend yield
- *First REIT*: delivered a 10.7% gain year-to-date with the highest dividend yield of 8.7% among the leaders
- *Parkway Life Real Estate Investment Trust*: achieved a total return of 10.0% year-to-date
*Market Trends:*
- The US 10-year risk-free rate decreased to 4.41%, while the SG 10-year risk-free rate decreased by 0.26%
- The sector's price-to-book ratio is below 0.8 times, indicating potential value opportunities
- Average yield spread is at 3.95% with respect to the SG risk-free rate
*Other Key Statistics:*
- Total Singapore REIT market capitalization decreased by 2.01% to S$86.45 billion
- Gearing ratio increased to 39.94% with a weighted average of 38.35%
- 19 of 37 Singapore REITs have trailing twelve-month distribution yields above 7%
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