SGX Market Updates

Author: SGX   |   Latest post: Mon, 27 Mar 2023, 12:37 PM


REIT Watch - Solid Fundamentals in S-Reits Despite Challenging 2022

Author:   |    Publish date:

Solid fundamentals in S-Reits despite challenging 2022Solid fundamentals in S-Reits despite challenging 2022Solid fundamentals in S-Reits despite challenging 2022Solid fundamentals in S-Reits despite challenging 2022

The year 2022 was a challenging one for the global Reits sector, with a rising interest rate environment and declining global growth.

During the year, the iEdge S-Reit Index declined 16 per cent in price returns, with dividends boosting its total returns to -12 per cent. Comparatively, the FTSE Epra Nareit Global Reits Index declined close to 25 per cent in price returns.

Despite headwinds over the past year, S-Reits reported solid and resilient fundamentals alongside the continued reopening of economies and the return of global travel. Hospitality Reits benefited significantly in 2022 with the rise in international tourist travels and was the sub-industry that saw the strongest performance for the year.

All hospitality trusts with Singapore assets recorded significant improvements in occupancy and RevPAR in H2 2022, benefiting from pent-up demand for overseas travels.

Retail Reits recorded marked recovery in shopper traffic footprint, stronger leasing activity and tenant sales with some even exceeding pre-Covid levels. In particular, consumer and leisure activities picked up in H2 2022 with the return of large-scale events and Mice activities. Office Reits also saw growth in occupancy rates and rental reversions while industrial Reits noted continued resiliency despite macro challenges.

Retail investors continued to be a key driver in S-Reits’ fund flow activities in 2022, accumulating net retail inflows of S$1.53 billion, while institutional investors saw net outflows of S$1.28 billion. S-Reits continued to be active in asset acquisitions throughout 2022, with total purchase considerations exceeding S$6 billion. Some of these acquisitions include maiden acquisitions and forays into new markets.

Daiwa House Logistics Trust and Digital Core Reit, both listed in 2021, announced maiden acquisitions in Japan logistics facilities and European data centre facilities respectively, with both expected to be DPU accretive. ParkwayLife Reit and First Reit continued to expand their healthcare focus in Japan nursing homes through portfolio expansions and acquisitions.

Share this

Related Stocks

Chart Stock Name Last Change Volume 
Daiwa Hse Log Tr 0.56 -0.01 (1.75%) 103,600 
DigiCore Reit USD 0.425 +0.02 (4.94%) 488,500 
ParkwayLife Reit 3.87 +0.01 (0.26%) 58,900 
First Reit 0.25 -0.005 (1.96%) 166,800 
Keppel DC Reit 2.07 +0.06 (2.99%) 5,628,400 
Mapletree Log Tr 1.71 +0.01 (0.59%) 10,302,100 
Mapletree Ind Tr 2.37 +0.03 (1.28%) 2,292,200 
CapLand Ascendas REIT 2.82 +0.05 (1.81%) 5,127,600 
Mapletree PanAsia Com Tr 1.79 +0.02 (1.13%) 4,904,700 
Frasers HTrust 0.455 0.00 (0.00%) 158,200 
CDL HTrust 1.17 +0.01 (0.86%) 1,785,700 
Sabana Reit 0.435 0.00 (0.00%) 239,700 
CapLand Ascott T 1.00 +0.005 (0.50%) 274,100 
CapLand IntCom T 1.97 +0.05 (2.60%) 8,202,100 
Far East HTrust 0.59 0.00 (0.00%) 167,300 

  Be the first to like this.

I3 Messenger
Individual or Group chat with anyone on I3investor

172  176  207  810 

Top 10 Active Counters
 Sembcorp Marine 0.1040.00 
 HSI 18400MBeP.. 0.05+0.007 
 Genting Sing 1.09+0.01 
 HSI 18200MBeP.. 0.082+0.01 
 HSI 21000MBeC.. 0.072-0.02 
 HSI 19400MBeP.. 0.097+0.013 
 HSI 21800MBeC.. 0.048-0.014 
 The Place Hldg 0.0070.00 
 HSI 17000MBeP.. 0.075+0.008 
 HSI 22200MBeC.. 0.057-0.013