FTSE ST Real Estate Investment Trusts (FTSE ST REIT Index) increased from 826.65 to 859.68 (+3.99%) compared with last month’s update. Currently the Singapore REIT index is still trading with a range between 816 and 874.
- Yield spread (reference to ten-year Singapore government bond of 1.391%) continues to tighten from 4.289% to 4.08%. However, the risk premiums are still attractive to accumulate Singapore REITs in stages to lock in the current price and long-term yield after the recovery. Moving forward, an increase in DPU is expected due to the global economic recovery.
- Technically the REIT Index is currently trading in a sideways consolidation after the false breakout. However, current macro factors such as low interest-rate environment, aggressive M&A for future DPU growth and recovery of the global economy support the bullish breakout.
Technical analysis
FTSE ST Real Estate Investment Trusts (FTSE ST REIT Index) increased from 826.65 to 859.68 (+3.99%) compared with last month’s update. Currently the Singapore REIT index is still trading with a range between 816 and 874.