In the first half of 2024, Singapore REITs experienced a downward trend in share prices, averaging a decline of 14%. Despite the lack of the anticipated three rate cuts last year, recent CPI data released last week led to a price increase. Now, two rate cuts are expected this year, possibly starting in September.
Overall Return
The graph below shows the overall returns, including Business Trust - CapitaLand India Trust. Dividends are based on the ex-dividend date.
This time, only 3 REITs achieved positive returns, with 6 losing 20% or more. Here’s a detailed breakdown:
- Average Dividend: 2.81% (ex-dividend date)
- Average Capital Loss: 14.45%
- Average Total Return: -11.65%
- Median Dividend: 2.86%
- Median Capital Loss: 13.18%
- Median Total Return: -9.54%
MCFK Group's REITs Return
For MCFK counters:
- Average Dividend: 2.59%
- Average Capital Loss: 18.47%
- Average Total Return: -15.88%
- Median Dividend: 2.67%
- Median Capital Loss: 15.72%
- Median Total Return: -13.16%
MCFK counters underperformed compared to the average and median of the 39 counters.
Ranking
Top 10 Highest Return
- All 2 healthcare REITs are on the list.
- 4 are retail REITs.
- 5 have no assets in Singapore.
Top 10 Lowest Return
- All 3 U.S. office REITs are on the list.
- 7 have no assets in Singapore.
Statistics for Return
- Only 3 REITs achieved positive returns.
- 1 was at 0% due to suspension (EC World REIT)
- 10 counters are losing 15% and above.
Bonus
As mentioned at the beginning of the post, there has been a small rally in REIT prices this month. Let's check out the return after this rally.
Though it is still a loss YTD, the overall total return has seen improvement.
Author's Opinion
Despite a significant decline in the first half, the small rally in July boosted the average return by around 5%, improving from an average of -11.65% to -6.7%. The number of REITs with positive returns increased from 3 to 8. Hopefully, rate cuts will materialize in September, ending the REITs' downturn.
As a side note, the S-REITs reporting season is here again and will be starting next week. I have updated the S-REITs Results Date from Google Calendar format to the interactive table and also added whether this result release will come with a dividend. Now, readers can sort by date, search for desired S-REITs, and check if any dividend is included in this result release.
For more information, check out:
SREITs Dashboard - Detailed information on individual Singapore REIT
SREITs Data - Overview and details of Singapore REIT
REIT Review - List of previous REIT review posts
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*Disclaimer: The information presented on this blog is for educational and informational purposes only. The materials, including research and opinions, are based solely on my findings and should not be considered professional financial advice or a definitive statement of fact. I cannot guarantee the accuracy, completeness, or reliability of the information provided. I shall not be held liable for any errors, omissions, or losses that may occur as a result of using the information presented on this blog. It should be noted that the information presented on this blog does not constitute a buy, sell, or hold recommendation for any security. It is crucial to conduct your own thorough research and due diligence before making any investment decisions.
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