S-REITs hit average total returns of 23% in 2019

The trusts contributed a quarter of the daily turnover of the island’s stock market.

Singapore REITs (S-REITs) generated an average total return of 23% in 2019, according to a report from SGX.

Amongst these, the 39 trusts that were listed for the full duration of the year posted returns of 26%. Global REITs that were listed for the duration also generated a median total return of 21% in 2019.

Furthermore, the REITs contributed a quarter (24%) to the day-to-day turnover of the island’s stock market in 2019. Over half or 25 of the 43 trusts outpaced the 9.4% total return of the Straits Times Index (STI) in 2019.

At the end of 2019, Singapore listed 35 REITs, six stapled trusts and two property trusts. The 43 trusts maintained a combined market value of $111.9b, which was 12% of Singapore’s stock market cap of $937.8b at the end of 2019.

On secondary fundraisings, 19 trusts raised $7.66b of the $8.82b total amongst SGX-listed firms in 2019. They contributed 84% or $2.44b of the S$2.90b total in 2019 in rights issues. In placements, they took up 88% or $5.22b of the $5.92b total.

Excluding OUE’s fundraisings, which clinched $1.42b related to its merger with OUE Hospitality Trust, S-REITs contributed a record $6.24b of the combined $7.40b in placements and rights issues.