S-REITs record 17.6% average returns YTD

CDL Hospitality Trusts is the big winner with 30% returns growth.

All 31 of Singapore's real estate investment trusts (REITs) averaged a 17.6% total return year-to-date (YTD). 

According to SGX MyGateway, total returns ranged from 8.0% for Fortune REIT to 30.0% for CDL Hospitality Trusts.

Institutions have been net buyers of the REIT Industry for the past four consecutive months, with cumulative inflows totalling $133.6m.

Meanwhile, the report quoted Ascendas REIT, the largest capitalised of the REITs in Singapore, noting that the US Federal Reserve remained dovish in its recent announcement in view of weakening US inflation data.

"Ascendas REIT further noted that prospects of another interest rate hike by the end of the year have dimmed, meaning interest rates are not expected to rise as fast as expected, and hence there may be a lower impact on its distribution per unit (DPU)," the report said.

Over the first 31 weeks of 2017, the SGX REIT 20 Index generated an 18.8% total return, which compared to 16.0% for the same period in 2016. The 2017 YTD return was achieved with less volatility than observed for the same period last year. As of 4 August 2017, the 20 constituents of the SGX REIT 20 Index had averaged 180-day historical volatility of 13.9% compared to 18.9% for the same period last year.