CICT announced another divestment: REITs Weekly Watch

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By Gerald Wong, CFA • 16 Nov 2024

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An index of Singapore REITs fell in the past week, as US government bond yields continued to rise.

singapore reits weekly wrap 15 nov 2024
In this article

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

singapore reit share price 9 nov 2024

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

REITs Top Performers 15 nov 2024

Singapore REITs Worst Performers

REITs Worst Performers 15 nov 2024

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.

mapletree industrial trust keppel dc reit

Other Beansprout REIT reports:

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Discovery Series with Beansprout 19Nov

Broker Reports on Singapore REITs 

Blog Posts on Singapore REITs 

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

 Videos on Singapore REITs 

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