CICT announced another divestment: REITs Weekly Watch

What happened?

An index of Singapore REITs fell slightly in the past week. The CSOP iEdge S-REIT Leaders Index ETF closed lower for the week at S$0.742, declining 0.3% from its close in the previous week of $0.744.

This follows weeks of declines as mixed sector fundamentals and a rise in US government bond yields led to renewed concerns about the distributions of Singapore REITs. 

The US 10-year government bond yield rose to above 4.5% this week, after Fed Chairman Jerome Powell indicated that "the economy is not sending any signals that we need to be in a hurry to lower rates". This led to the decline in the probability of the Fed cutting interest rates in December to 62% from 85% one month ago, according to the CME Fedwatch Tool. 

Losses were led by REITs with US office assets, due to concerns about the impact of elevated US interest rates on the valuation of their assets. On the other hand, datacentre REITs outperformed with gains by Digital Core REIT and Keppel DC REIT.

Singapore REITs Top Performers

• Digital Core REIT
• Suntec REIT
• Keppel DC REIT
• Paragon REIT
• Frasers Hospitality Trust

Singapore REITs Worst Performers

• Lippo Malls Indonesia Retail Trust
• Manulife US REIT
• Acrophyte Hospitality Trust
• Keppel Pacific Oak US REIT
• BHG Retail Trust

Check out our Singapore REIT screener to discover the best REIT for your portfolio.

REIT news of the week

• CapitaLand Integrated Commercial Trust divested 21 Collyer Quay for S$688m, in line with independent valuation, at an exit yield below 3.5%.  The pro-forma aggregate leverage as at 30 Jun 24 would reduce from 39.9% to 38.3%.
• CapitaLand Ascendas REIT (CLAR) announced the acquisition of a parcel of land in the city of Summerville, a submarket of Charleston, South Carolina, in the US. The land will be developed into a new logistics property at an estimated total investment cost of US$70.5 million (S$94.8 million).
• IREIT Global portfolio occupancy was 0.2%-points lower at 89.6%. Year-to-date, it achieved rental escalation of 5.8%. It warned that 2025 distribution should be impacted as it is repositioning Berlin Campus into a mixed-use asset.
• Lendlease REIT's 1Q25 rental reversions were +11.4% for retail and +1.2% for office. Occupancy edged up slightly to 89.5%.
• Prime US REIT's distributable income for the third quarter ended Sep 30, fell to US$8.5 million from US$14.7 million the year before. This was due to lower contribution from its properties as well as higher finance expenses. 

The Big Important Story 

3 Singapore REITs that raised their dividends recently

Here are three Singapore REITs that managed to increase their dividends in the most recent quarter - Mapletree Industrial Trust, Keppel DC REIT, and AIMS APAC REIT.

Other Beansprout REIT reports:

• CapitaLand Ascott Trust to acquire lyf Funan. What should investors do?
• Paragon REIT 3Q24 update: Softer retail sales
• Cromwell European REIT - Stabilisation of asset values with interest rate cuts

Upcoming Event 

Join us at "SGX Discovery Series with Beansprout: Navigating the landscape of European S-REITs" on 19 November, where we’ll dive into the exciting prospects of investing in this dynamic sector. This event features exclusive insights from senior executives of leading European REITs, including Cromwell European REIT, Elite UK REIT, and IREIT Global. Register for free here. 

Broker Reports on Singapore REITs 

• CapitaLand Integrated Commercial Trust: Hot on the heels of another divestment by DBS

Blog Posts on Singapore REITs 

• Mapletree Industrial Trust (SGX: ME8U): 2025 Half Year Result by DividendParadise
• Mapletree Industrial Trust's 2Q FY24/25 Result Review by REIT-TIREMENT
• S-Reits Tumble Amid Inflation Fears and US Economic Uncertainty by Minichart
• Mapletree Pan Asia Trust 1H FY24/25: Unacceptable for a blue-chip REIT by A Retail Investor's Chronicles
• First Reit – 1st healthcare reit listed on SGX (11 Nov 24) by Ernest Lim's Investing Blog
• First REIT's 3Q FY24 Result Review by REIT-TIREMENT
• Key Highlights from EC World REIT’s Q3 and 9M FY2024 Results by The Singaporean Investor
• How Retail REITs Can Safeguard Your Retirement In Singapore by Consulting Daniel
• CICT Divests 21 Collyer Quay by My Sweet Retirement
• 4 Singapore REITs with Overseas Properties: Should You Consider Adding Them to Your Portfolio? by The Singaporean Investor
• Frasers Logistics and Commercial Trust FY24 Full Year Results by My Sweet Retirement
• A Deep Dive Into AIMs APAC REIT's Performance by Wealth Insights
• Singapore REITs Business Updates For 3rd Quarter 2024 by Consulting Daniel
• AIMS APAC REIT's 1H FY25 Result Review by REIT-TIREMENT

Credit to Vince from REIT-Tirement for compiling Singapore REIT blog posts and videos

 Videos on Singapore REITs 

• Singapore's Best Quarterly REITs by Iggy the Investing Iguana
• If I buy Keppel DC REIT now, what am I buying it for? by Heah Min An
• Understand the Different Type of REITs in Singapore by My Sweet Retirement
• Why Singapore REITs Are Crashing? by Iggy the Investing Iguana
• If I’m Worried About FCT, I’d Consider These REITs Instead! by The Dividend Uncle
• Top REIT Investment Strategies for 2025: What You Need to Know! by The Edge Singapore
• I Bought $45,000 Mapletree Industrial Trust & Bought More When It Crashed by Josh Tan

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