REITs decline amid higher bond yields: REITs Weekly Watch

What happened?

An index of Singapore REITs declined in the past week, despite a further interest rate cut by the US Federal Reserve. Government bond yields climbed further as the election of Donald Trump as the next US President led to expectations of greater inflationary pressures.

The CSOP iEdge S-REIT Leaders Index ETF closed lower for the week at S$0.744, declining 3.4% from its close in the previous week of $0.770.

The US 10-year government bond yield rose to above 4.4%, after early vote counting in the US President Election pointed to a lead by Donald Trump. The yield eventually moved lower to end at 4.31% on Friday, after the US Fed cut interest rates by 0.25%, and Fed Chairman Jerome Powell indicated that the election of Donald Trump has no near-term impact on Fed policy.

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.

Singapore REITs Top Performers

• BHG Retail Trust
• Sabana Industrial REIT
• Elite UK REIT

Singapore REITs Worst Performers

• Manulife US REIT
• Keppel Pacific Oak US REIT
• Prime US REIT
• Frasers Logistics and Commercial Trust
• Frasers Centrepoint Trust

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

REIT news of the week

• AIMS APAC REIT 1H25 net property income rose 5.1% year-on-year on the back of  16.9% rental reversions. It declared DPU of 4.67 cents, 0.4% higher than 1H24. Read our analysis here.
• Elite UK REIT  9M24 distributable income was 2.8% higher year-on-year at £14.0m. 3Q24 DPU, at 0.73 pence, was similar to 2Q24. Read our analysis here.
• Acrophyte Hospitality Trust 9M24 gross operating profit fell 4.95 to US$46.3m, due to 1.5% point fall in occupancy to 69.1% and 1.1% decline in RevPAR to US$97. Average cost of debt jumped to 6.6% with aggregate leverage higher at 43.2%.
• Keppel REIT’s CEO Koh Wee Lih will be stepping down from this role on 31 December and assuming a new role as managing director, business development at Keppel Limited. Chua Hsien Yang, currently the managing director and head for mergers and acquisitions (M&A) at Keppel, will replace Koh as CEO from Jan 1, 2025 onwards.

The Big Important Story 

What's driving weakness in Singapore REITs?

The share prices of Singapore REITs have fallen in recent weeks. We find out how higher government bond yields and mixed sector fundamentals have impacted Singapore REITs.

Upcoming Event 

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Broker Reports on Singapore REITs 

• Singapore REITs: When the doves fly by DBS
• AIMS APAC REIT: AEIs to drive next phase growth
• First REIT: Rental arrears an overhang

Blog Posts on Singapore REITs 

• REITs in the Spotlight: How Interest Rate Cuts Will Shape the Sector by Investor-One
• CapitaLand Ascendas Real Estate Investment Trust (SGX: A17U): 2024 Third Quarter Business Update by DividendParadise
• 3 Singapore REITs That Raised Their DPUs by The Smart Investor
• A Review of CapitaLand Integrated Commercial Trust’s Q3 and 9M FY2024 Business Update by The Singaporean Investor
• 3 Singapore Blue-Chip REITs Offering at Least 5% Dividend Yield by Small Cap Asia
• Starhill Global VS Lendlease REIT by Consulting Daniel
• 5 Singapore REITs with Quarterly Dividend Payouts to Consider for Your Portfolio by The Smart Investor
• Interest Rate Dilemma: Should You Sell REITs and Buy Banks? by The Smart Investor
• Why did Singapore REITs drop today? by Minichart
• What To Do When You Are Losing Money In REITs by Consulting Daniel
• Syfe REIT+ Portfolio Rebalancing (Sep 2024) – OUE REIT Dropped by Turtle Investor
• Frasers Centrepoint Trust's 2H FY24 Result Review by REIT-TIREMENT
• Mapletree Pan Asia Commercial Trust's 2Q FY24/25 Result Review by REIT-TIREMENT
• Digital Core REIT's 3QY24 Result Review by REIT-TIREMENT

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

 Videos on Singapore REITs 

• Why are Mapletree REITS(ME8U,M44U,N2IU) Q3 Results bad? by Investing with Ben
• Should You Cut Losses And SELL Your SG REITs Now??? by Master Leong
• First REIT's 9M 2024 Business Update Reviewed by Iggy the Investing Iguana
• How Would The U.S. Presidential Election Affect My Investments? T-bill Ladder? Banks, REITs & FCT? by AK71SG
• REIT Price Weaknesses: Brace for BIG Market Moves by The Dividend Uncle
• 6 Terms to Know As a REIT Investor by My Sweet Retirement
• Risks of Mapletree Logistics Trust Spreading Beyond China by The Dividend Uncle
• Singapore REITs: 2025 Insights by Iggy the Investing Iguana
• Capitaland Ascendas REIT by Wealthimize
• CICT Top Pick For All New Investors by Master Leong
• Frasers Centrepoint Trust: A 5-Year Review of the Singapore-listed Suburban Retail REIT by The Singaporean Investor
• REITs are falling, what am I buying? (A lunchtime update on 6 Nov 2024) by One-eyed_investor
• MPACT - FCT by r Negoro
• SG REITs Crashing Oh Noooo... A Hamburger Story... by Master Leong
• SG REITs Crashed! Is it Time to Buy? by Master Leong
• REITs - Tumble and Tremble by Trump by Gabriel Yap
• Ascendas Reit Update by Master Leong

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