Singapore REITs book $790m in net outflows

The iEdge S-REIT Leaders Index fell 12.3% year to date.

Singapore-listed Real Estate Investment Trusts (REITs) booked $790m in net institutional outflows in the first five months of 2024.

Digital Core REIT, Frasers Centrepoint Trust and ESR-LOGOS REIT defied the capital flight as all three recorded net institutional inflows during the period, according to data from the Singapore Exchange.

Digital Core REIT registered net inflows of $6.4m, while Frasers Centrepoint Trust recorded $2.7m. Net inflows at ESR-LOGOS REIT hovered around $100,000.

SGX data showed the iEdge S-REIT Leaders Index went down 12.3% to 1,021 as of 29 May from 1,164 at the start of the year, with the reinvested distributions reducing the decline in total return to 9.5%.

The index also maintained a trailing 12-month distribution yield of 6.5% at the end of April.  

“Tighter financial conditions and a fluid outlook for these conditions has provided more tradability to the sector,”  the SGX said. “Going forward, potential resilience of REITs could provide both investability and tradability.”

The iEdge S-REIT Leaders Index, with 22 constituents, is the most liquid representation of the S-REIT market.

Singapore’s REIT market was on a weak start to 2024 with -4.6% in total returns in January.