REITs show mixed movement after Fed's big rate cut: REITs Weekly Watch

What happened?

Singapore REITs ended a week of volatile trading little changed from the previous week, as the share prices of REITs had mixed reaction to the US Federal Reserve’s interest rate cut this week.

The CSOP iEdge S-REIT Leaders Index ETF closed at S$0.816, flat from its close in the previous week of $0.815.

Singapore REITs with overseas assets and small-and-mid-sized market cap outperformed, while large cap REITs saw some profit-taking following significant gains in recent weeks.

Singapore REITs Top Performers

• Keppel Pacific Oak US REIT
• Digital Core REIT
• IREIT Global
• Daiwa House Logistics Trust
• United Hampshire US REIT

Singapore REITs Worst Performers

• Frasers Logistics & Commercial Trust
• Lendlease Global Commercial REIT
• Mapletree Industrial Trust
• Frasers Centrepoint Trust
• BHG Retail REIT

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

REITs Trading at the lowest price-to-book valuation

To screen for Singapore REITs that may still offer good value, we look for REITs that have paid a dividend in the past 12 months and are trading at a low price-to-book valuation.

The REITs that are trading at the lowest price-to-book valuation are:

• OUE REIT
• BHG Retail REIT
• CapitaLand China Trust
• Suntec REIT
• CDL Hospitality Trusts

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

What's moving Singapore REITs  

• CapitaLand Ascott Trust will be fully compensated for the losses it suffered for an alleged white-collar crime in Australia. This follows press reports in The Edge that a senior executive of CapitaLand in Australia purported faked tax, insurance and legal documents, as well as misappropriated funds. CapitaLand Ascott Trust noted that the incident would not have an impact on its distribution per stapled security and net tangible assets per stapled security for the financial year ending Dec 31.
• OUE Reit has priced S$180 million in fixed-rate green notes due 2031 at 3.9%. Net proceeds from the issuance will be used to finance or refinance new or existing eligible green projects. 
• Fullerton, an investment manager that is an indirect subsidiary of Temasek Holdings, has disposed of 121,900 units in Mapletree Industrial Trust to the open market. The disposal, which was conducted on Sept 13, netted the group $307,163.62, or $2.52 per unit. Following the disposal, Fullerton’ stake in MINT now stands at 0.452%. 

Beansprout Insight

CICT Preferential Offering - What should unitholders do? 

What we’re reading

• Broker reports
• Investment blogs
• Youtube videos

Broker reports 

• Pros & cons of Fed’s aggressive rate cut and impact on REITs – DBS 
• Equity Picks: Adding a REIT to dividend category – DBS
• Digital Core REIT: An opportunity not to be missed – DBS
• US Office REITs: Is there light at the end of the tunnel? – DBS 

Investment blogs

• Is now the time to buy S-REITs? Everyone is talking about them! by – The Investment Brief’s Substack
• Investing in Singapore’s Hospitality Scene: A Look at the 5 Listed REITs by – The Singaporean Investor
• Data Center REITs Comparison: Who’s the Champion? by SmallCapAsia by – SmallCapAsia
• Interest Rates Poised to Fall: 4 Singapore REITs That May Announce Acquisitions to Grow Their DPU by – The Smart Investor
• 50 Basis Percentage Fed Cut: US REITs Benefit The Most by – Investmoolah
• SREITs Maybe Overvalued Despite Jumbo Size Interest Rate Cut of 0.5% By Powell by – Investment Income for Life 
• The Turnaround of S-REITs To Be Stronger Post-Fed Rate Cut by – ProsperUs
• [Rate Cuts] Is It A Good Time To Invest In REITs? by – Consulting Dan
• Jumping On The Interest Rate Cuts: Top Singapore REITs To Watch by – Investor-One 
• Subscribed to CICT Preferential Offer Shares by – Live Rich Life Free
• Ultimate Guide to Singapore REITs (Sep 2024) by – Wealth Insights
• Singapore Office Focused REITs Comparison – REIT-Tirement
• CapitaLand Group's REITs/BizTrust Comparison – REIT-Tirement
• Frasers Group's REITs Comparison – REIT-Tirement

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

YouTube videos

• SG Blue Chip REITS Still Can Buy? What's the Outlook Ahead for Singapore Reits? by Master Leong
• Market Watch: Distributions still under Pressure by PhillipCapital
• Best REIT to watch out in 2024 ? Is Ascendas REIT the Best? by STA Club
• This Changes EVERYTHING for Daiwa House Logistics Trust (DHLU) by The Dividend Uncle
• REITs Super Rally! But Watch Out for Risks of an Undersized US Rate Cut! by The Dividend Uncle
• CapitaLand Ascendas REIT Rated S$3.44 by Iggy the Investing Iguana
• Subscribe CapitaLand Integrated Commercial Trust (CICT) #reit at $2 for Ion Orchard? by Heah Min An
• Is Lendlease Global Commercial REIT a Buy? Everything You Need to Know by The Singaporean Investor
• CICT ION Acquisition: Some Concerns Despite Good Arbitrage Opportunity by One-eyed_investor
• Opportunities in Singapore REITs and Property Trusts by PhillipCapital
• Sampan REITS Special!!! Can Buy Or Not??? by Master Leong
• Why DBS is Rooting for Mapletree Pan Asia Commercial Trust (MPACT) by Iggy the Investing Iguana
• Is SG REIT in Trouble? by Adios Finance
• Is Mapletree Overhyped Now? by Iggy the Investing Iguana
• How will Rate Cuts impact BEST Reitsand Banks stocks? by Investing with Ben

Join the Beansprout Telegram group and REIT Investment Community on Facebook for the latest insights on Singapore REITs.