- FTSE ST Real Estate Investment Trusts (FTSE ST REIT Index) decreased slightly from 865.91 to 849.11 (-1.94%) compared to last month’s update. Currently the Singapore REIT index is still trading with a range between 816 and 874.
- Yield spread (in reference to 10-year Singapore government bond of 1.52%) continues to tighten from 3.809% to 3.8%. However, the risk premium is still attractive to accumulate Singapore REITs in stages to lock in the current price and to benefit from long-term yield after the recovery. Moving forward, it is expected that DPU will increase due to the recovery of the global economy.
- Technically the REIT Index is still trading in a sideways consolidation waiting for a breakout (upside bias). Current macro factors, such as a low-interest rate environment, aggressive M&A for future DPU growth, wider roll-out of the vaccination and recovery of global economic support the bullish breakout.
Technical analysis
FTSE ST Real Estate Investment Trusts (FTSE ST REIT Index) decreased slightly from 865.91 to 849.11 (-1.94%) compared to the last month’s update. Currently the Singapore REIT index is still trading with a range between 816 and 874.