• FTSE ST Real Estate Investment Trusts (FTSE ST REIT Index) increased slightly from 843.73 to 853.35 (1.14%) compared to the last month’s update. Currently the Singapore REIT index is still trading with a range between 816 and 890.
• Yield spread (in reference to the 10-year Singapore government bond of 1.66% as of 31 December 2021) tightened slightly from 4.29% to 4.19%. This is due to the 10- year Singapore government bond rate decreasing less (1.69% to 1.66%) compared to the average REIT yield decreasing from 5.93% to 5.84%.
• The risk premium is 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 global economy, as seen in the previous few earning updates. NAV is expected to be adjusted upward due to revaluation of the portfolio.
• Technically the REIT Index is currently on short term sideways trend, recently bouncing back from its support at 835. Post-pandemic recovery should continue, which can lead to the stablilisation of share prices of Singapore REITs and the return of the dividend for the next few quarters. Based on the latest earning releases, most of the REITs are growing in DPU and cautiously optimistic moving into 2022. 

Technical analysis

FTSE ST Real Estate Investment Trusts (FTSE ST REIT Index) decreased slightly from 843.73 to 853.35 (1.14%) compared to the last month’s update. Currently the Singapore REIT index is still trading with a range between 816 and 890.