S-Reits posts 7.1% increase in returns in January: report

This is above STI’s 3.5% total returns. 

S-Reits posted a 7.1% increase in total returns in January, outpacing Straits Times Index’s total returns of 3.5%, Singapore Exchange (SGX) reported. 

SGX attributed this to “expectations of a slower pace of interest rate increases [that] continued to affect market sentiments.” 

Meanwhile, institutional investors net bought (+S$1.6m) while retail investors net sold (-$44.3m) of S-REITs in January 2023.

Moreover, the report noted that five S-Reits have so far released their financial results or business updates; whilst 26 others have confirmed released dates in the coming weeks. 

Read more: Broker retains outlook for S-Reits stocks as overweight

“As the sector continues to face headwinds, the sector's operational efficiency, growth prospects and balance sheet resilience will be placed under scrutiny. Out of the 5 S-Reits, Suntec Reit announced its full-year results,” SGX also noted.

“The Reit reported a 24% yoy growth in net property income (NPI), and saw distributable income grow 3.4% on a full year basis. Full year DPU grew 2.5% to 8.884 cents due to higher NPI contribution and a capital distribution of S$23.0mn.”