Technical Analysis of FTSE ST REIT Index (FSTAS351020)
FTSE ST Real Estate Investment Trusts (FTSE ST REIT Index) decreased from 649.94 to 642.87 (-1.09%) compared to last month's update. Singapore REITs index is currently trading near the support level of a wedge pattern.
• Short-term direction: Sideways
• Medium-term direction: Sideways
• Long-term direction: Sideways
• Immediate Support: Blue Support Line (Wedge)
• Immediate Resistance: Red resistance line (Wedge)
Previous chart on FTSE ST REIT index can be found in the last post: Singapore REITs Monthly Update on November 09, 2024.
Fundamental Analysis of 38 Singapore REITs
The following is the compilation of 38 Singapore REITs with colour-coding of the Distribution Yield, Gearing Ratio and Price to NAV Ratio.
Data from REITsavvy Screener https://screener.reitsavvy.com
What does each Column mean?
As of May 2024, all REITs' Yield Spread will be referenced to SG Gov Bond Yields, regardless of trading currency.
Price/NAV Ratios Overview
Keppel DC REIT |
1.61 |
ParkwayLife REIT |
1.56 |
Mapletree Industrial Tr |
1.23 |
Capitaland Ascendas REIT |
1.18 |
AIMS APAC REIT |
0.97 |
Mapletree Logistics Tr |
0.96 |
Manulife US REIT |
0.31 |
Acrophyte Hospitality Trust |
0.31 |
Lippo Malls Indonesia Retail Trust |
0.32 |
Prime US REIT |
0.32 |
Keppel Pacific Oak US REIT |
0.33 |
OUE REIT |
0.43 |
Distribution Yields Overview
Acrophyte Hospitality Trust |
12.45 |
IREIT Global |
11.46 |
First REIT |
9.23 |
Elite UK REIT |
9.10 |
United Hampshire REIT |
9.02 |
Cromwell European REIT |
8.90 |
Gearing Ratios Overview
Manulife US REIT |
58.2 |
EC World REIT |
56.1 |
Prime US REIT |
47.8 |
Elite UK REIT |
45.1 |
Lippo Malls Indonesia Retail Trust |
45.0 |
Acrophyte Hospitality Trust |
43.2 |
Market Capitalisation Overview
Capitaland Integrated Commercial Trust |
13,063.96 |
Capitaland Ascendas REIT |
11,388.23 |
Mapletree Logistics Tr |
6,458.88 |
Mapletree Pan Asia Commercial Trust |
6,418.42 |
Mapletree Industrial Tr |
6,000.84 |
Frasers Centrepoint Trust |
3,889.45 |
Acrophyte Hospitality Trust |
124.70 |
Lippo Malls Indonesia Retail Trust |
138.55 |
Elite UK REIT |
178.23 |
Manulife US REIT |
190.84 |
BHG Retail REIT |
213.04 |
EC World REIT |
226.76 |
Disclaimer: The above table is best used for “screening and shortlisting only”. It is NOT for investing (Buy / Sell) decisions. If you want to know more about investing in REITs, scroll down for more information on the REITs courses.
Top 20 Best / Worst Performers of November 2024
Source: https://screener.reitsavvy.com/
10-Year & US 10-Year Government Bond Yield
Summary
Singapore REITs has temporarily paused at current level (near the support based on chart pattern). At the same time, US 10 years risk free rate has broken out from an uptrend channel and showing sign of trend reversal.
US 10 Year Risk Free Rate
Fundamentally, the S-REIT sector is trading at a 11% discount to its fair value, with an average trailing twelve-month (TTM) yield of 6.08%.
According to the current Fed Fund Rate projections from the CME Group, the market expect another 25 basis point cut by end 2024, with a total reduction of 100 basis points cut from the peak of the interest rate cycle. The cut in interest rate will help to boost the DPU of the REITs which have shorter debt maturity profile and higher percentage of floating rate. However, the impact will only be reflected in the financial statement of the next 1 to 2 quarter. The current weakness of the S-REIT sector will continue to be shadowed by the US 10 Year Risk Free rate which have has very strong inverse correlation with the REIT index.
Kenny Loh is a distinguished Wealth Advisory Director with a specialization in holistic investment planning and estate management. He excels in assisting clients to grow their investment capital and establish passive income streams for retirement. Kenny also facilitates tax-efficient portfolio transfers to beneficiaries, ensuring tax-efficient capital appreciation through risk mitigation approaches and optimized wealth transfer through strategic asset structuring.
In addition to his advisory role, Kenny is an esteemed SGX Academy trainer specializing in S-REIT investing and regularly shares his insights on MoneyFM 89.3. He holds the titles of Certified Estate & Legacy Planning Consultant and CERTIFIED FINANCIAL PLANNER (CFP).
With over a decade of experience in holistic estate planning, Kenny employs a unique “3-in-1 Will, LPA, and Standby Trust” solution to address clients’ social considerations, legal obligations, emotional needs, and family harmony. He holds double master’s degrees in Business Administration and Electrical Engineering, and is an Associate Estate Planning Practitioner (AEPP), a designation jointly awarded by The Society of Will Writers & Estate Planning Practitioners (SWWEPP) of the United Kingdom and Estate Planning Practitioner Limited (EPPL), the accreditation body for Asia.
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