- FTSE ST Real Estate Investment Trusts (FTSE ST REIT Index) increased from 827.88 to 864.41 (4.41%) compared to the last month update. The Singapore REIT index rebounded off from the support level at 807 three times, broke the 836 resistance turned support level and is now trading between the 836-890 range.
- Yield spread (in reference to the 10-year Singapore government bond of 2.37% as of 3 April 2022) tightened significantly from 4.14% to 3.49%. The S-REIT Average Yield remained almost the same, but with an increase in Singapore Government Bond Yields from 1.84% to 2.37%, Yield Spread tightened.
- The risk premium has dropped, but still remains attractive (compared to other asset classes) to accumulate Singapore REITs in stages to lock in the current price and to benefit from long-term yield after the recovery, especially since the S-REIT Market is still at a fair value. Moving forward, it is expected that DPU will continue to increase due to the recovery of the global economy, as seen in the previous few earning updates, especially for Hospitality REITs. NAV is expected to be adjusted upward due to revaluation of the portfolio.
- Technically the FTSE ST REIT index has started a short term trend with the eye of the next crucial resistance at 890 to break. Breaking this resistance will wake up the bull for the Singapore REITs sector.
Technical analysis
FTSE ST Real Estate Investment Trusts (FTSE ST REIT Index) increased from 827.88 to 864.41 (4.41%) compared to the last month update. The Singapore REIT index rebounded off from the support level at 807 three times, broke the 836 resistance turned support level and is now trading between the 836-890 range.
- Support Lines: Blue
- Resistance Lines: Red
- Short-term direction: Upwards
- Medium-term direction: Sideways
- Long-term direction: Sideways
- Immediate Support at 836, followed by 807.
- Immediate Resistance at 890.
The REIT Index traded between 807 and 836 for much of March, before breaking the 836 resistance on March 17. It has entered a short-term uptrend since then, reaching 864.41 as of now.
