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 Loh is a senior consultant and REITs specialist at Singapore’s top independent financial adviser. He is also a certified financial planner, REIT trainer for the Singapore Exchange, and a certified trainer by the Institute of Banking and Finance Singapore. His personal investment blog is at http://mystocksinvesting.com.

Articles by Kenny Loh

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