REITs with China exposure surge on stimulus measures: REITs Weekly Watch

What happened?

An index of Singapore REITs closed slightly higher compared to the previous week, as improved sentiment towards REITs with China exposure lifted the sector. 

The CSOP iEdge S-REIT Leaders Index ETF closed at S$0.823, gaining 0.9% from its close in the previous week of $0.816.

Singapore REITs with China assets led the gains following the announcement of significant stimulus measures to lift the economy. Gains were led by BHG REIT, CapitaLand China Trust, and Sasseur REIT.

On the other hand, REITs with US exposure saw some profit-taking following gains in previous weeks, with losses led by ARA US Hospitality Trust, Keppel Pacific Oak US REIT and Prime US REIT.

Singapore REITs Top Performers

• BHG Retail REIT
• CapitaLand China Trust
• Lippo Malls Indonesia Retail Trust
• Sasseur REIT
• Lendlease Global Commercial REIT

Singapore REITs Worst Performers

• Frasers Hospitality Trust
• Cromwell European REIT
• Prime US REIT
• Keppel Pacific Oak US REIT
• ARA US Hospitality Trust

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

REIT news of the week

• CapitaLand Integrated Commercial Trust (CICT) received valid acceptances of 82 per cent at the close of its preferential offering on 24 Sep. The REIT received valid acceptances of 309.5 million new units and excess applications of 183 million units. A total of 377.3 million new units will be issued to raise gross proceeds of about S$757.2 million. The preferential offering units are expected to be listed on the SGX on 2 Oct.
• Mapletree Logistics Trust has announced the completion of the divestment of Flexhub in Malaysia. The REIT had earlier announced in November 2023 that it had entered a sale and purchase agreement for the divestment of Flexhub and Padi in Malaysia at a total sale price of RM151.2 million ($43.8 million). 
• Sasseur REIT’s trustee-manager has disposed of 3 million units via a married deal on Sept 25. The units were sold for $1.98 million or 66 cents per unit. Following the transaction, the trustee-manager has a 2.513% stake in the REIT, down from 2.753% previously.
• CapitaLand India Trust (CLINT)’s trustee-manager has entered into a $50 million sustainability-linked term loan facility agreement with the Bank of East Asia, Singapore branch.
• Vacancy rates for Grade A offices in Singapore’s central business district rose for the second consecutive quarter to 8.3% in July-September, according to property consultancy Jones Lang LaSalle Inc. That’s the highest level since the first quarter of 2022. 

What we’re reading

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We find out if healthcare REITs are worth revisiting following IHH's recent purchase of Island Hospital.

Broker reports 

Could S-REITs gain from plunging T-bill yields? - DBS

S-REITs Properties Map

Singapore Logistics Properties

Blogs

• Keppel Group's REITs Comparison @ 24 September 2024
• Mapletree Group's REITs Comparison 22 September 2024
• Frasers Centrepoint Trust: Good To Go? by The Bedokian Portfolio
• CICT Rights Issue and Preferential Offering by My Sweet Retirement
• 5 Singapore REITs Poised to Benefit from US Federal Reserve’s Interest Rate Cuts by The Singaporean Investor
• 5 Steps to Find Quality REITs by Wealth Compass
• 3 Singapore Blue-Chip REITs Offering at Least 5.2% Dividend Yield (Which May Go Higher) by The Smart Investor

YouTube

• REITs vs Banks: Which Does AK ($200K/Year in Dividends) Prefer? by The Fifth Person
• CDL Hospitality Trusts: A Solid Portfolio Add or a Risky Bet? by The Singaporean Investor
• Income stock 1 - Starhill Global Reit by Wealthimize
• Singapore REITs: 4 Hidden Gems Ready to Explode by Iggy the Investing Iguana
• Singapore REITS to buy  by Investment101
• 3 Major Risks Shaping My $18,000 Decision in Lendlease REIT by The Dividend Uncle
• Lendlease REIT: 2nd half and FY24 Results: Cost of debt concerns remain but CEO positive.(26 Sep 24) by One-eyed_investor
• BEST Reits that will increase their dividends in FY24/25 by Investing with Ben
• Missing Millions at CapitaLand Ascott Trust by Iggy the Investing Iguana

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