Singapore-listed REITs are among the biggest losers today as markets in Asia slide to their lowest in months. The FTSE ST Real Estate Investment Index is down 9.05 points or 1.17 percent, closing at 761.64 points.
The weaker numbers comes on the back of lackluster performances in the Asian indexes, most notably the benchmark Nikkei 225 which plunged 6.35 percent to close at 12,445 points. The Straits Times Index fared slightly better with a drop of 0.72 percent to close at 3130. But this did not mitigate the plunge for Singapore REITs.
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| The plunge in prices for Singapore REITs have brought back some yields into the 6 .5 percent territory based on historical dividends. |
The top ten losing REITs on the SGX today are as follows:
| REIT | Last | Drop | % Drop |
|---|---|---|---|
| Keppel REIT | 1.325 | -0.065 | -4.676 |
| Cambridge Industrial Trust | 0.68 | -0.03 | -4.225 |
| Parkway Life REIT | 2.39 | -0.09 | -3.629 |
| Frasers Commmercial Trust | 1.36 | -0.05 | -3.546 |
| Sabana REIT | 1.115 | -0.04 | -3.463 |
| LippoMalls Indonesia Retail Trust | 0.465 | -0.015 | -3.125 |
| Starhill Global REIT | 0.845 | -0.025 | -2.874 |
| Mapletree Commercial Trust | 1.2 | -0.035 | -2.834 |
| CapitaRetail China Trust | 1.47 | -0.04 | -2.649 |
| Ascott REIT | 1.285 | -0.03 | -2.281 |
Keppel REIT has been in the spot light lately as parent Keppel Corporation has announced its intention to sell away its stake of 180 million units in the REIT. Keppel Corporation has not responded to our queries on the rationale for this disposal or the performance of Keppel REIT thus far.
It is unclear which direction Singapore REITs will be taking in the months ahead. The FTSE ST Real Estate Investment Index. which is largely seen as a proxy for Singapore-listed REITs, has fallen by more than 15 percent from its 52-week high of 890 points last 15 May on concerns that the US may be enacting tighter monetary policies in the coming quarters.
But there are bright sparks in the decline. Yields for several Singapore REITs have inched back into the territory of 6.5 percent based on historical dividends. This is a yield projection not seen since 2012 and should attract dividend hungry investors keen on income producing assets.