2022 isn't a good year for Singapore REITs investors, the average return is at negative double-digit even after taking in dividends. The fed rate hike is fast and furious in 2022 which increased from 0% - 0.25% at the beginning of the year to 4.25% to 4.5% at the end of the year. Despite the rate hike would slowdown moving forward, there is still no clear indication of the terminal rate at this moment.
Overall Returns
Let's take a look at the overall returns from the graph below, including Business Trusts - CapitaLand India Trust & Dasin Retail Trust. Note that the dividend is based on the ex-dividend date.
The return is really miserably for 2022, with only 5 counters having positive returns and 2 counters losing more than 50%. Next, let's look at the detailed table breakdown:
The average dividend is at 5.39% (based on ex-dividend date) and the average capital loss is at -20.77%, total at -15.38%.
How do MCFK (Ascendas has been renamed to Capita Land this year) counters perform in 2022?
*PRIME US REIT is included due to the 30% interest in the REIT manager by Keppel Capital Two Pte. Ltd., a wholly-owned subsidiary of Keppel Capital Management Pte Ltd and in turn, wholly-owned by Keppel Capital Holdings Pte. Ltd. which is the asset management arm of Keppel Corporation Limited.
For MACFK counters, the average dividend is 5.07% (based on ex-dividend date) and the average capital loss is at -17.42%, total at -12.35%. The dividend yield is slightly lower but the total return is better than the average of 40 counters.
Ranking
Top 10 Highest Returns
- Top 3 counters are hospitality trusts
- 5 are MCFK counters
- 4 out of 5 hospitality trusts are on the list, besides ARA US Hospitality Trust
- All CapitaLand-sponsored REITs are on the list, besides BizTrust - CapitaLand India Trust
Top 10 Lowest Returns
- Top 3 counters have assets only in U.S.
- 3 are MCFK counters
- All 3 U.S. Office REITs are on the list
- 5 out of 6 USD traded counters are on the list, besides United Hampshire US REIT
- 2 pure data centre REITs are on the list
- 8 counters have no assets in Singapore
Statistics for Returns
| Total Return, % | Qty |
|---|---|
| >0% | 5 |
| > -5% to 0% | 7 |
| > -10% to -5% | 2 |
| > -15% to -10% | 6 |
| > -20% to -15% | 8 |
| > -25% to -20% | 4 |
| <= -25% | 8 |
Only 5 counters achieved positive returns and 12 counters are having a loss of more than 20%.
Author's Opinion
The share price continues to decline in 4Q 2022 where the average capital loss is more than 20%. This implied that we have stepped into the bear market stage in 4Q 2022 from the correction stage as in 3Q 2022. Now that 2022 has ended and the fast and furious rate hike is expected to slow down in 2023, let's hope 2023 would be a better year for Singapore REITs investors. Finally, I wish everyone a Happy New Year.
You could also refer below for more information:
SREITs Dashboard - Detailed information on individual Singapore REIT
SREITs Data - Overview and detail of Singapore REIT
REIT Review - List of previous REIT review posts
Singapore REITs Post Telegram Channel - Join to receive posts for Singapore REITs
REIT-TIREMENT Patreon - Support my work and get exclusive content
REIT-TIREMENT Facebook Page - Support by liking my Facebook Page
REIT Investing Community - Facebook Group where members share and discuss REIT topic
*Disclaimer: Materials in this blog are based on my research and opinion which I don't guarantee accuracy, completeness, and reliability. It should not be taken as financial advice or a statement of fact. I shall not be held liable for errors, omissions and loss or damage due to the use of the material in this blog. Under no circumstances does the information presented on this blog represent a buy, sell, or hold recommendation on any security, please always do your own due diligence before any decision is made.
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