The month of May saw the iEdge S-Reit Index decline 3.0 per cent in total return on the back of persistent inflation and growing expectations of a June rate hike, reversing its 0.6 per cent gains in April.
However, on a year-to-date basis, the iEdge S-Reit Index remained in the green, with 1.8 per cent total returns, outpacing the STI Index’s 0.3 per cent declines and the FTSE EPRA Nareit Developed Index’s 0.9 per cent declines.
In terms of net fund flows over the month, retail investors net bought S$144 million of S-Reits while institutional investors net sold S$85 million of the sector.
By sub-segments, retail S-Reits, which averaged total returns of 0.9 per cent in May, is the only S-Reits sub-segment which averaged positive total returns.
On the other hand, office S-Reits underperformed for the month, averaging 9.9 per cent declines in total returns.
For the year-to-date period, diversified S-Reits outperformed with average total returns of 1.5 per cent while office S-Reits underperformed with average declines of 24.1 per cent.
Dasin Retail Trust, United Hampshire US Reit and Cromwell European Reit were top performers for the month of May, posting total returns of 11.6 per cent, 4.0 per cent and 3.8 per cent respectively.
Cromwell European Reit was also among the top three performing S-Reits for the year-to-date period with 14.8 per cent total returns.
The other two S-Reits were both constituents of the STI Index – Keppel DC Reit, which was the top performing S-Reit this year thus far, recorded 21.1 per cent in total returns while Frasers Logistics & Commercial Trust posted 9.8 per cent in total returns during the same period.
All seven S-Reits that were constituents of the STI Index outperformed the index in the year to date, averaging 7 per cent total returns.
Two S-Reits garnered net fund inflows from both institutional and retail investors in May.
CapitaLand Ascendas Reit received net inflows of S$12 million and S$19 million from institutional and retail investors respectively while Aims Apac Reit received net inflows of S$2.5 million and S$2.1 million from institutional and retail investors respectively.
