In 2024, the Fed initiated rate cuts starting in September, with a total reduction of 100 bps. Despite these cuts, S-REITs' share prices struggled, with many falling below their 2023 levels. Today, let’s explore how S-REITs performed this year.
Overall Returns
The graph below shows the overall returns, including Business Trust - CapitaLand India Trust. Dividends are based on the ex-dividend date.
Returns have further declined in 2024, with fewer than half of the S-REITs achieving positive returns. Notably, 5 REITs recorded losses exceeding 20%. Here’s a breakdown of the numbers:
- Average Dividend: 5.72% (ex-dividend date)
- Average Capital Loss: 9.21%
- Average Total Return: -3.49%
- Median Dividend: 6%
- Median Capital Loss: 6.45%
- Median Total Return: -1.31%
Next, let's check out how MCFK (Mapletree, CapitaLand, Frasers, Keppel) REITs performed in 2024:
- Average Dividend: 5.24%
- Average Capital Loss: 12.58%
- Average Total Return: -7.34%
- Median Dividend: 5.42%
- Median Capital Loss: 12.04%
- Median Total Return: -6.14%
MCFK REITs continue to lag behind both the average and median performance of the 39 S-REITs.
Ranking
Top 10 Highest Returns
- 4 are office-focused REITs
- 3 are retail REITs
- 5 have no assets in Singapore
Top 10 Lowest Returns
- 5 are office-focused REITs
- 5 are MCFK REITs
- 5 have no assets in Singapore
Statistics for Returns
- 5 achieved returns of 10% or more
- EC World REIT was at 0% due to suspension
- 11 recorded losses of 10% or more
Author's Opinion
Despite a 100 bps rate cut this year, REIT prices remain weak. However, returns have improved compared to the first half of the year. For a detailed breakdown of the first six months, refer to my earlier post, Singapore REITs 2024: Tracking Returns in the First Half.
Looking ahead, CME FedWatch indicates a higher likelihood of a 50 bps rate cut by the end of 2025, with a probable 25 bps cut in March.
As we close out the year, I wish everyone a better year ahead. Happy New Year!
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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