The search for yield continues to benefit Singapore's real estate investment trusts(S‐Reits).

Since the beginning of 2013, the FTSE ST Real Estate Index  ‐ which has 41 constituents that are either holding and development companies or Reits  ‐ has added 5.7 per cent to the 53.6 per cent dividend‐inclusive return achieved in 2012, according to Singapore Exchange in its market update.

According to Bloomberg data, 5.7 per cent total return consists of a 4.8 per cent price return and a 0.9 per cent dividend return. The FTSE ST Real Estate Holding & Development Index and the FTSE ST Real Estate Investment Trust Index have generated dividend‐inclusive returns of 0.54 per cent and 13.1 per cent respectively in the 2013 year so far.

Over the last 10 years, the FTSE ST Real Estate Index, which includes companies like CapitaLand, Hongkong Land, Keppel Land, City Developments and UOL Group, has generated an average annualised
gain of 14.1 per cent.

The search for yield in the S‐Reit arena is likely to continue given the low interest rate environment.

Source: AmFraser