Mapletree Logistics Trust and Paragon REIT sell assets: REITs Weekly Watch

What happened?

An index of Singapore REITs rebounded in the past week. The CSOP iEdge S-REIT Leaders Index ETF closed higher for the week at S$0.745, increasing by 1.6% from its close in the previous week of $0.733.

US government bond yields declined following US President-Elect Donald Trump's nomination of fund manager Scott Bessent as US Treasury Secretary, which is seen as a force of stability who will pursue more measured policies. Likewise, the 10-year Singapore government bond yield also fell. 

The best performing REITs were REITs with industrial assets, including Mapletree Logistics Trust, AIMS APAC REIT, CapitaLand Ascendas REIT, and Mapletree Industrial Trust. 

Singapore REITs Top Performers

• Parkway Life REIT
• Mapletree Logistics Trust
• AIMS APAC REIT
• CapitaLand Ascendas REIT
• Mapletree Industrial Trust

Singapore REITs Worst Performers

• OUE REIT
• BHG Retail REIT
• IREIT Global
• Sabana Industrial REIT
• Prime US REIT

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

REITs news of the week:

• The MAS announced that all Singapore-listed REITs will be subject to a single leverage limit of 50% and a minimum interest coverage ratio (ICR) of 1.5 times at all times. Read our analysis here.
• Mapletree Logistics Trust (MLT) has completed the divestment of two warehouse properties in Japan for 4.25 billion Japanese yen (S$37.5 million). Read more about Mapletree Logistics Trust here.
• Paragon REIT has entered into an agreement to sell its stake in Figtree Grove, an Australian shopping centre for A$192 million (S$168 million). The divestment represets a 5 percent premium over the independent valuation of the property as at 31 October 2024.  Read more about Paragon REIT here.
• Elite UK REIT has entered a contract to divest Hilden House, an office building in Warrington, England, for a sale consideration of £3.3 million (S$5.6 million). This represents a 6% premium above the property’s valuation of £3.1 billion as at Jun 30, 2024. Read more about Elite UK REIT here.
• IREIT Global has signed a lease contract with UK hotel chain Premier Inn for 10,348 square metres or 12 per cent of net lettable space in its Berlin Campus asset. This marks the first lease commitment as part of IREIT Global’s 42 million euro project to refurbish and transform Berlin Campus into a multi-use asset with office, retail and hospitality components. Read more about IREIT Global here.

The Big Important Singapore REIT Story

Will Singapore REITs finally recover in 2025?

We recently held a webinar to share our thoughts on Singapore REITs. S-REITs have experienced significant volatility in recent months. After rebounding in anticipation of the US Federal Reserve interest rate cuts, their share prices have since declined by close to 10% and are now nearing 2024 lows once again. We find out if REITs are poised to finally recover in 2025. 

Blog Posts on Singapore REITs 

• Paragon REIT Divest Figtree Grove by My Sweet Retirement
• Keppel DC REIT 3Q2024 Operational Updates by My Sweet Retirement
• 4 Singapore REITs Boasting Occupancy Rates Above 95% and Dividend Yields of 5.6% and Above by The Smart Investor
• Frasers Hospitality Trust - Balancing Opportunities and Challenges by Wealth Insights
• 3 Singapore REITs that Invest Solely in European Properties by The Singaporean Investor
• What's next for CapitaLand Integrated Commercial Trust? by A Retail Investor's Chronicles
• SREITs Fundamental Review @ 24 November 2024 by REIT-TIREMENT
• European Office Focused REITs Comparison @ 26 November 2024 by REIT-TIREMENT
• Hospitality Trusts Comparison @ 28 November 2024 by REIT-TIREMENT

 Videos on Singapore REITs 

• If I Buy Frasers Centrepoint Trust (FCT) REIT Now, What Am I Buying It For? by Heah Min An
• SG REITS Rebounds! KDC Reit Rockets! by Master Leong
• Trump’s Push for AI: Data Center REITs, Hyperscalers and Beyond by The Dividend Uncle
• It's NOT OVER For Reits Yet, Don't Worry - What Reits To Buy! by Josh Tan - TheAstuteParent
• Phillip Securities ‘overweight’ on S-REITs by Iggy the Investing Iguana
• Corporate Connect feat. First REIT - 5 Nov 2024 by SIAS

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

Broker reports on Singapore REITs

• Singapore REITs Monthly – Fewer rate cuts expected - By Phillip Securities

• Keppel DC REIT – Acquisition of KDC SGP 7 and 8 - By Phillip Securities

• Paragon REIT - An early Christmas gift - By DBS

• Parkway Life REIT - Prescription for growth - By DBS

• Mapletree Logistics Trust - Proposed divestment of two Japan properties - By DBS

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