REIT-TIREMENT - REITs Investing & Personal Finance

REITs investing & personal finance

Sunday, April 03, 2022

Top 10 Singapore REITs with the Highest YTD Returns in 2022 Q1

Photo by Kindel Media from Pexels

At the 2021 year-end, many expected 2022 would be a better year for economic recovery due to the easing of COVID-19 restrictions and more and more borders re-opening. However, due to the war between Russia and Ukraine, the recovery is affected. Fortunately, towards the end of March, most Singapore REITs have rallied upon the announcement of COVID-19 restriction easing and border opening. The first quarter of 2022 is a bumpy one for Singapore REITs, most are still in negative returns even after including dividends. 

Overall YTD Returns

Let's find what are Singapore REITs (including Business Trusts - Ascendas India Trust & Dasin Retail Trust) returns as of Q1 2022. Note that the dividend is based on the ex-dividend date, therefore some REITs would have 0% as they do not have distribution in Q1 2022. 

Below is the detailed table if you prefer:

On average the dividend is 1.85% (based on ex-dividend date) and capital loss at -1.19%, total up to 0.66%. Not really a good start, is it? How about those crown MACFK counters that most people always focus on?

*PRIME US REIT is included due to the 30% interest in the REIT manager by Keppel Capital Two Pte. Ltd., a wholly-owned subsidiary of Keppel Capital Management Pte Ltd and in turn, wholly-owned by Keppel Capital Holdings Pte. Ltd. which is the asset management arm of Keppel Corporation Limited.

On average the dividend is 1.33% (based on ex-dividend date) and capital gain at 0.38%, total up to 1.71%. This time, the return is a lot better as compared to the average of all counters, due to average capital gain.


Top 10 Highest Returns

7 out of the top 10 counters are having retail and hospitality properties in Singapore. The share price of these REITs rallied after the announcement of border opening and easing of restrictions. 

Top 10 Lowest Returns

Statistics for Returns

Total Return, % Qty
> 15%2
> 10% to 15%6
> 5% to 10%3
> 0% to 5%8
> -5% to 0%14
> -10% to -5%7
<= -10%2

19 counters are having positive returns in Q1, with 8 counters are having more than 10% return, in which 5 are MACFK counters. As for the negative returns, there are 9 counters with more than negative 5% returns, out of which, 3 are MACFK counters.


Author's Opinion

The relaxation of COVID-19 restrictions and border opening in Singapore is indeed good news for Singapore REITs. However, do not get over-optimistic as there is a possibility of 6 more rate hikes this year. As we are unable to predict nor control the macro events / black swan events, it would be easier to just invest regularly and diversify into multiple REIT sectors. I always believe that all REITs have their price, which changes from time to time. Do not simply buy a REIT at any price no matter how wonderful the fundamental or the sponsor name is; nor underrate/undermine small to mid-cap REITs. Valuation always matters.

You could also refer below for more information:

SREITs Dashboard - Detailed information on individual Singapore REIT

SREITs Data - Overview and Detail of Singapore REIT

REIT Analysis - List of previous REIT analysis posts

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*Disclaimer: Materials in this blog are based on my research and opinion which I don't guarantee accuracy, completeness, and reliability. It should not be taken as financial advice or a statement of fact. I shall not be held liable for errors, omissions and loss or damage as a result of the use of the material in this blog. Under no circumstances does the information presented on this blog represent a buy, sell, or hold recommendation on any security, please always do your own due diligence before any decision is made.

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