Singapore REITs tap into offshore markets as local returns falter

Offshore REITs have delivered 30% on a total return basis.

The city-state’s real estate investment trusts (REITs) have seen considerably greater success in offshore markets, overperforming the rest of SIngapore financials both in the medium and long term.

According to a report by Jefferies, offshore REITs have delivered 30% on total return basis versus 2.4% return for SIT index and 14% return for Strait Times REIT Index.

“Over the last three years, offshore REITs have annualized 16% total return versus -0.8% for the market index and 7% for the REIT index,” the report noted.

The REITs which have benefited from their offshore presence include CRCT, Fortune REIT, Ascendas India, Croesus, MAGIC and Lippo Malls Trust, the report noted.