Still going strong: Singapore REITs – The Property Chronicle
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Still going strong: Singapore REITs

The Fund Manager

A continuing upward trend makes this a good defensive asset class amid global uncertainty

Early this summer the FTSE ST Real Estate Investment Trusts index broke through the 875 level after 10 years of resistance, with a significant increase in trading volume (see the chart in figure 1). The index increased from 858.67 to 916.95 (+6.78%) between 3 June and 1 July.

The REIT index is entering into uncharted territory after breaking a new high and may head towards 1,000 points, based on projection of 161.8% Fibonacci level. Based on the current chart pattern and momentum, the sentiment is bullish and the trend for Singapore REIT direction is still upwardsHowever, the REIT index may go for a short-term pause before moving higher.

Figure 1: FTSE ST REIT index (FSTAS8670)

The table in figure 2 is a compilation of 39 REITs in Singapore with colour coding of the distribution yield, gearing ratio and price to NAV ratio. This gives investors at a quick glance an idea of which REITs are attractive enough to deserve in-depth analysis. The two new IPOs, ARA US Hospitality Trust and Eagle Hospitality Trust, are not included in this table because of insufficient data points.

The key points to note from this table are as follows:






The Fund Manager

About Kenny Loh

Kenny Loh

Kenny has been investing in Singapore REITs for about 8 years. He is one of the pioneers of financial bloggers in Singapore. Since 2009, Kenny has been blogging at http://mystocksinvesting.com, reaching 19 thousand unique monthly visitors from 110 countries now. Over the years, Kenny has conducted many seminars and benefited thousands of investors by collaborating with SGX, SIAS, CIMB, RHB, Maybank Kim Eng, CMC Market, City Index, ShareInvestor, InvestingNote, iFAST, Aberdeen Standard Asset Management, Natixis Global Asset Management, Wealth Academy Investor Inner Circle (WAIIC) and Online Traders Club Singapore (OTCS). Kenny has since taught hundreds of attendees, from students, fund managers and businessmen to retirees, teachers, and even fashion designers.

Articles by Kenny Loh

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