- FTSE ST Real Estate Investment Trusts (FTSE ST REIT Index) decreased from 816.11 to 827.88 (1.44%) compared to the last monthly update. The Singapore REIT index rebounded off 800 in January 2022 and has stayed within the 800-836 range.
- Yield spread (in reference to the 10-year Singapore government bond of 1.78% as of 5 February 2021) tightened slightly from 4.18% to 4.14%. The S-REIT Average Yield remained almost the same, but with a slight increase in Singapore Government Bond Yields from 1.78% to 1.84%. Yield Spread tightened slightly.
- The risk premium 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 undervalued. 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 is currently moving sideways. After challenging the resistance of 836 for 3 times, if the REIT Index breaks the resistance, it is expected to breakout. If the REIT Index breaks down below to current 800 support level, the next support is expected to be at 775. Otherwise, the REIT Index is currently moving sideways, trading between 800 and 836.
Technical analysis
FTSE ST Real Estate Investment Trusts (FTSE ST REIT Index) decreased from 816.11 to 827.88 (1.44%) compared to the last monthly update. The Singapore REIT index rebounded off 800 in January 2022 and has stayed within the 800-836 range.
- Short-term direction: Sideways
- Medium-term direction: Sideways
- Long-term direction: Sideways
- Immediate Support at 800, followed by 775.
- Immediate Resistance at 836.
Following the correction from 800, the REIT Index went on a short-term uptrend until the Russian Invasion of Ukraine, when the REIT Index hit the support level of 807 on both February 24th and 28th. In the past two months, it has challenged the resistance of 836 a total of three times. It is now at 827.88.
