SGX S-Reit Index generates 12% total return

The SGX S-REIT (real estate investment trust) Index generated a total return of 12.2 percent in the year through 8 July, outperforming the benchmark MSCI World Reit Index which, over the same period, generated a total return of 7.6 percent in Singapore dollar terms, an SGX report revealed.
“The SGX S-REIT Index also maintains a dividend yield of 6.8 percent, compared with the MSCI World REIT Index’s yield of 4.0 percent,” said the report
The SGX S-Reit Index is “a free-float, market capitalisation-weighted index which measures the performance of stocks operating within the REIT sector.” It is made up of 34 constituents, with a combined market capitalisation of over S$64 billion.
Meanwhile, the city-state’s REIT sector comprises 31 REITs and six stapled trusts. Recently, two REITs – Manulife US REIT and Frasers Logistics & Industrial Trust – were added to the SGX.
Averaging a total return of 21.2 percent in the year-to-date, this year’s five best performing REITin the Index are Saizen REIT, Mapletree Industrial Trust, Suntec REIT, Keppel REIT and Keppel DC REIT.
REITs raise capital to primarily purchase real estate assets, usually to generate income for fund’s unit holders, said the report.
“It allows individual investors to access real property assets and share the benefits and risks of owning a portfolio of properties, which typically distribute income at regular intervals,” it added.
Nikki De Guzman, Editor at CommercialGuru, edited this story. To contact her about this or other stories email nikki@propertyguru.com.sg

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