Lion-Phillip S-REIT ETF

Fund Description

Key Features

• 1

  25 high quality S-REITs in a fund

  The Lion-Phillip S-REIT ETF tracks the Morningstar® Singapore REIT Yield Focus Index, which is designed to screen for high-yielding REITs with superior quality and financial health, using a 3-factor proprietary methodology.

  1. Quality; 
  2. Financial health; and 
  3. Dividend yield

  The weightings are further adjusted to take into consideration the liquidity of the underlying REITs. 

  The Index will be rebalanced semi-annually in June and December of each year, with the maximum weighting of each constituent security capped at 10% at each rebalancing.

  

• 2

  Fundamental recovery in REITs

  The post-pandemic recovery in the Singapore economy has been translating into positive rental recoveries across the REIT space. 

  With supply remaining tight, commercial landlords are in a good position to raise rents. In the Office space, the outlook remains firm, with a pick-up in leasing demand and pre-commitment rates driving up grade A rents up 3.2% quarter-on quarter (QoQ) to S$11.30 monthly per square foot (psf) in the second quarter of 2022. 

  The gradual reopening of the economy is also supporting retail mall rents, with tenant sales now 10% to 20% above pre-Covid levels. 

  Meanwhile, the all-industrial rental index grew 1% QoQ, the first increase since 2014, reflecting a favorable supply situation. 

  Therefore, such evidence of improving fundamentals contrast with increasing concerns of a global recession and strengthens the Singapore REIT sector as a steady and defensive asset class.