Chart of the Day: 5 largest SG-focused REITs average returns hit 7.3% in January

CapitaLand Commercial Trust recorded a return of 9.1% in January YTD.

This chart from the Singapore Exchange (SGX) shows that the five largest SG-focused REITs saw average returns of 7.3% YTD in January. With this, they have outperformed the five largest SG-focused developers and SG-focused construction stocks which saw their average returns at 4.7% and 5.2% YTD in January.

“The group of five stocks that saw the biggest swings since the end of 2016 were the construction stocks, followed by the developers and then the REITs,” SGX explained. “On average, over the past 12 months, the swings of the five REITs were around half the size of the swings of the five construction stocks.”

Amongst the five largest SG-focused REITs, CapitaLand Commercial Trust (CCT) saw the highest return of 9.1% in January YTD. This was followed by Suntec REIT (8.4%), Mapletree Commercial Trust (7.9%), Ascendas REIT (5.8%), and CapitaLand Mall Trust (5.3%).

Also read: See the best performing office REITs in H2

Meanwhile, UOL Group saw the highest return of 7.8% in January YTD amongst the five largest SG-focused developers. This was followed by United Industrial Corp (7.3%), OUE (5.6%), Guocoland (2.8%), and Bukit Sembawang Estates (0).

For the five largest construction stocks, Lian Beng Group recorded the highest return of 9.6% in January YTD. This was followed by Boustead Projects (8.5%), Chip Eng Seng (6.1%), KSH Holdings (4%), and Wee Hur (-2.4%).

SGX noted that the five largest SG-focused developers and construction stocks are trading at similar discounts to their five year Price-to-Book (P/B) ratio, whilst all five REITs are currently trading at P/B ratios above their five year P/B average.