REIT-TIREMENT - REITs Investing & Personal Finance

REITs investing & personal finance

Sunday, April 02, 2023

Breaking Down the Total Return of Singapore REITs in 1Q 2023

The first quarter of 2023 has ended, and the performance of Singapore REITs has been somewhat stable, with the hospitality trust sector showing good improvement. In the first quarter, the Fed rate increased by 0.5% to reach its current level of 4.75% - 5%. Against the backdrop of concerns over tech industry layoffs, banking crises, and an uncertain macro environment, will the Fed rate hike will come to an end soon? Nevertheless, let's take a closer look at the latest performance of Singapore REITs.

Image by Steve Buissinne from Pixabay

Overall Returns

Let's take a look at the overall returns from the graph below, including Business Trusts - CapitaLand India Trust & Dasin Retail Trust. Note that the dividend is based on the ex-dividend date.

The 1Q 2023 delivered a mixed return, with 21 counters yielding positive returns and 19 counters showing negative returns. Let’s take a closer look at the table below for a detailed breakdown:

The average capital loss stands at -4.73%, while the average dividend is 2.94%, resulting in an overall average total return of -1.78%. Interestingly, the median total return is a positive 0.45%, with a median capital loss of -2.36% and a median dividend of 2.88%. Despite no dividend declared, Frasers Centrepoint Trust, Frasers Hospitality Trust & Frasers Logistics & Commercial Trust achieved above median total returns.

Next, let's take a look at the performance of the MCFK (Mapletree, CapitaLand, Frasers, and Keppel) counters. I would remove PRIME US REIT from this quarter onward.

The MCFK counters exhibited strong performance, with an average capital gain of 2.44% and an average dividend of 2.2%, leading to an overall average return of 4.63%. The median figures were slightly better, with a median total return of 5.15%, a median capital gain of 2.75%, and a median dividend of 2.39%


Top 10 Highest Returns


- 7 MCFK counters, with the top 5 position held by MCFK counters

- All 3 Mapletree-sponsored REITs present

- 5 Industrial REITs (6 if including Mapletree Logistics Trust)

- 8 counters with market cap above S$ 2 Billion

Top 10 Lowest Returns


- 9 counters have no assets in Singapore

- 9 counters with market cap below S$ 1 Billion

- 6 counters with gearing ratio above 40%

- All 3 US office REITs present

Statistics of Returns

Total Return, %Qty
> 10%2
> 5% to 10%12
> 0% to 5%7
> -5% to 0%9
> -10% to -5%2
> -15% to -10%3
> -20% to -15%5

Out of the 40 counters, 21 achieved positive returns, with 2 of them achieving returns of more than 10%. However, 5 counters experienced losses of more than 15%.


Author's Opinion

The Singapore REITs market delivered a mixed return in 1Q 2023, with certain sectors showing improvement and others facing challenges. Around 40% of the counters have their share price increased, however, this is not the case for some REITs with 100% foreign properties. To help readers stay updated on the year-to-date performance of Singapore REITs, I have added this information to the SREITs Data for convenient reference. You could view this with YTD Returns tab moving forward.

For more information, check out:

SREITs Dashboard - Detailed information on individual Singapore REIT

SREITs Data - Overview and details of Singapore REIT

REIT Review - List of previous REIT review posts

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*Disclaimer: The information presented on this blog is for educational and informational purposes only. The materials, including research and opinions, are based solely on my findings and should not be considered professional financial advice or a definitive statement of fact. I cannot guarantee the accuracy, completeness, or reliability of the information provided. I shall not be held liable for any errors, omissions, or losses that may occur as a result of using the information presented on this blog. It should be noted that the information presented on this blog does not constitute a buy, sell, or hold recommendation for any security. It is crucial to conduct your own thorough research and due diligence before making any investment decisions.

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