Unveiling the S-REIT Market Cap Landscape: A Sector-by-Sector Breakdown

Singapore boasts one of the largest REIT markets in Asia (excluding Japan). But what exactly makes up this market, and how is its value distributed across different sectors? Let us dive into the S-REITs market cap, exploring the various sectors that contribute to its overall size and offering insights for potential investors. 

Market capitalization, often abbreviated as "market cap," refers to the total market value of all outstanding shares of a publicly traded company or, in this case, S-REITs listed on the Singapore Exchange.

(REITsavvy only tracks 38 of all the S-REITs and Business Trusts listed on SGX)

As of 29 May 2024, the S-REITs market cap sits at approximately $87.49 Billion.  This impressive figure represents a significant portion of the Singapore stock market, highlighting the importance of REITs within the local investment landscape.

Now, let's explore the different sectors that contribute to the S-REITs market cap:

Diversified: The largest sector within the S-REITs market at approximately $31.638 Billion, at 36.161% of the S-REITs market. These REITs hold a mix of properties across various sectors, offering investors exposure to a diverse range of real estate assets. This can be a good option for those seeking to mitigate risk by not being overly reliant on a single sector.

• The largest diversified S-REIT based on market cap is Capitaland Integrated Commerical Trust at approximately $12.70 Billion.
• The smallest diversified S-REIT based on market cap is Cromwell EUR REIT at approximately $0.804 Billion.

Industrial: The second largest sector within the S-REITs market at approximately $30 Billion, at 34.288% of the S-REITs market. Warehouses, factories, and logistics facilities fall under this category. The rise of e-commerce has fueled the growth of this sector, potentially increasing its share of the market cap in the future.

• The largest industrial S-REIT based on market cap is Capitaland Ascendas REIT at approximately $11.913 Billion
• The smallest industrial S-REIT based on market cap is EC World REIT at approximately $0.226 Billion.

Retail: The third largest sector within the S-REITs market at approximately $8.578 Billion, at 9.805% of the S-REITs market. Retail malls and shopping centers fall under this category. While e-commerce has posed some challenges, strategically located retail REITs remain relevant, especially those catering to specific needs or experiences.

• The largest retail S-REIT based on market cap is Frasers Centrepoint Trust at approximately $3.71 Billion
• The smallest industrial S-REIT based on market cap is Lippo Malls Indonesia Retail Trust at approximately $0.115 Billion.

Hospitality: The fourth largest sector within the S-REITs market at approximately $6.818 Billion, at 7.793% of the S-REITs market. Hotels and resorts comprise this sector. While the pandemic significantly impacted its performance, the hospitality sector is expected to rebound as tourism and travel recovers.

• The largest hospitality S-REIT based on market cap is Capitaland Ascott Trust at approximately $3.36 Billion
• The smallest hospitality S-REIT based on market cap is ARA US Hospitality Trust at approximately $0.161 Billion.

Office: The fifth largest sector within the S-REITs market at approximately $4.232 Billion, at 4.837% of the S-REITs market. This sector includes office buildings. This sector is impacted heavily due to post-pandemic going back-to-office working habits as different countries and companies have different policies of asking employees to go back to the office for work, limiting demand. And coupled with higher interest rates, grossly affecting the properties' valuations as well

• The largest office S-REIT based on market cap is Keppel REIT at approximately $3.269 Billion
• The smallest office S-REIT based on market cap is Elite Commercial REIT at approximately $0.12 Billion.

Specialized: The second smallest sector within the S-REITs market at approximately $3.573 Billion, at 4.084% of the S-REITs market. This category includes REITs focusing on niche areas like data centers and self-storage facilities. These specialized S-REITs offer exposure to specific asset classes with their own growth trajectories.

• The largest specialized S-REIT based on market cap is Keppel DC REIT at approximately $2.906 Billion
• The smallest specialized S-REIT based on market cap is Digital Core REIT at approximately $0.66 Billion.

Healthcare: The smallest sector within the S-REITs market at approximately $2.653 Billion, at 3.032% of the S-REITs market. This sector encompasses hospitals, nursing homes, and medical facilities. Most of the developed nations have an ageing population challenge, the healthcare REIT sector is likely to see continued growth and hold a larger share of the market cap in the coming years.

• The largest healthcare S-REIT based on market cap is ParkwayLife REIT at approximately $2.135 Billion
• The smallest healthcare S-REIT based on market cap is First REIT at approximately $0.517 Billion.
  

Understanding the S-REIT market cap by sector empowers investors to make informed decisions. By analyzing individual sectors, investors can:

• Identify potential growth areas: Sectors like healthcare or industrial might offer exciting opportunities based on current trends.
• Diversify their portfolio: Investing across various sectors mitigates risk by not being overly reliant on the performance of a single sector.
• Gain deeper market insights: Sector analysis provides a more nuanced view of the S-REIT market beyond just the headline market cap figure.

The S-REIT market cap represents a dynamic landscape, with different sectors contributing to its overall value. By understanding the various components and their growth potential, investors can navigate the market with greater confidence.

For an in-depth analysis of individual S-REITs and powerful tools to explore the S-REIT market by sector, check out REITsavvy Screener.