#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.

Quality;
Financial health; and
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.

Lion-Phillip S-REIT construction methodology.png

#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.

Lion-Phillip S-REIT ETF

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