From 2Q 2022, there are 2 lesser SREITs to trade due to mergers. First, ARA LOGOS Logistics Trust, which completed the merger with ESR-REIT. And second, Mapletree North Asia Commercial Trust, which is expected to complete the merger with Mapletree Commercial by end of July. The next could be Frasers Hospitality Trust which has announced the proposed privatization where the EGM is expected to be held in September.
Overall YTD Returns
Below is the infographic for returns of Singapore REITs as of 1H 2022, including Business Trusts - Ascendas India Trust & Dasin Retail Trust. Note that the dividend is based on the ex-dividend date. ARA LOGOS Logistics Trust and Mapletree North Asia Commercial Trust have been removed from the list.
Below is the detailed table:
The median dividend is at 2.6% (based on ex-dividend date) and the median capital loss is at -7.61%, total up to -4.94%. The dividend itself is not enough to cover the capital loss. How about MACFK counters? Do they fare better?
*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.
For MACFK counters, the median dividend is 2.54% (based on ex-dividend date) and the median capital loss is at -4.06%, total up to -1.85%. The capital losses are lower and result in lower total losses.
Ranking
Top 10 Highest Returns
The top 4 highest returns come from hospitality trusts. Frasers hospitality trust has a significantly high return due to the proposed privatization offer @ 70 cents. There are only 8 counters that have positive YTD total returns while 6 counters out of 10 are MACFK counters.
Top 10 Lowest Returns
2 pure data centre REITs and 3 pure logistics REITs are in the top 10 lowest returns. 4 out of 10 are from MACFK counters.
Statistics for Returns
| Total Return, % | Qty |
|---|---|
| > 15% | 1 |
| > 10% to 15% | 4 |
| > 5% to 10% | 1 |
| > 0% to 5% | 2 |
| > -5% to 0% | 11 |
| > -10% to -5% | 10 |
| <= -10% | 11 |
Only 8 counters have positive YTD returns, out of which, 4 are MACFK counters.
Author's Opinion
The first half-year of 2022 is not really a good period for SREITs. Generally, REITs price has declined quite a fair bit in 2Q with a median YTD capital loss of 7.61%. With the uncertainty arising from interest hikes, high inflation, the Russia-Ukraine war and the increasing worries about recession, the near-term outlook doesn't look favorable. While we couldn't control the macro, we could plan our purchases in batches or invest regularly. Theoretically, the return from timing is better than the "time-in" market, but in reality, it is not something that could easily be achievable.
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
Singapore REITs Post Telegram Channel - Join to receive posts for Singapore REITs
REIT-TIREMENT Patreon - Support my work and get exclusive contents
REIT-TIREMENT Facebook Page - Support by liking my Facebook Page
REIT Investing Community - Facebook Group where members share and discuss REIT topic
*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 due to 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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