REITs and property trusts in Singapore are mostly shedding gains made late in the previous week as the US Federal Reserve sends mixed signals on its intention to proceed with tapering measures.

Singapore REITs are trading mostly lower on mixed signals by the US Fed

Confused investors sent REIT prices south as Frasers Centrepoint Trust, Ascott REIT and Mapletree Greater China Commercial Trust each shedding more than 2 per cent by mid day while Ascendas REIT, Fortune REIT and AIMS AMP Capital Industrial Trust looks set to join the territory. In particular interest is Parkway Life REIT which soared 12% at the end of the trading session last Thursday. The REIT is now trading at S$2.37, an 8 per cent drop from Thursday’s close of S$2.59.

Update at market close: Residential-heavy Saizen REIT ended the day shedding 3.67 per cent while Frasers Centrepoint recovered slightly to lose 1.84 per cent. Parkway Life closed the day even lower at S$2.36, virtually wiping off a significant chunk of Thursday's euphoria.

Earlier last week, the US Federal Reserve had indicated briefly that there will be no tapering given that growth figures for the US have been les stellar than expected. However confusion in the market ensued when senior Fed official James Bullard commented that “it’s possible you could get some data that change the complexion of the outlook and could make the committee be comfortable with a small taper in October”.

Gold prices have fallen on the comments, following on sharp losses in the previous session. High-dividend stocks and REITs, which traded cautiously last Friday have since succumbed to general market sentiments that tapering looks set to continue after all, albeit at a slower pace than initially planned.

Here are the biggest losers as updated at the end of the closing day:

No. REIT Last (S$) Change (S$) % Change
1 Saizen REIT 0.18 -0.01 -3.67
2 Ascott REIT 1.23 -0.04 -3.15
3 Mapletree Greater China 0.94 -0.03 -2.59
4 AIMS AMP REIT 1.51 -0.03 -1.95
5 Frasers Centrepoint 1.84 -0.04 -1.87
6 Ascendas REIT 2.31 -0.04 -1.70
7 Parkway Life REIT 2.36 -0.04 -1.67
8 Mapletree Logistics Trust 1.08 -0.02 -1.37
9 CapitaCommercial Trust 1.45 -0.02 -1.36
10 Cache Logistics Trust 1.19 -0.02 -1.25

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.