S-REITS 20 | Singapore REITS Index
Singapore REITs index, i.e SGX S-REITS 20 measures the performance of the 20 largest and most tradable trusts of the REIT sector listed on Singapore Exchange (SGX). The index provider adjusts for each Reit’s free float – that is, the number of shares publicly available to investors – and then attaches weights for each Reit constituent according to its free-float-adjusted market capitalization.
REITS 20 – Top 10 Constituents
- Suntec REIT (T82U) 10.3%
- CapitaLand Commercial Trust (C61U) 10.1%
- CapitaLand Mall Trust (C38U) 10.1%
- Ascendas REIT (A17U) 9.9%
- Mapletree Industrial Trust (ME8U) 7.1%
- Keppel REIT (K71U) 6.7%
- Mapletree Greater China Commercial Trust (RW0U) 6.6%
- Mapletree Logistics Trust (M44U) 6.1%
- Starhill Global REIT (P40U) 4.5%
- Frasers Centrepoint Trust (J69U) 4.3%
Source: SGX.com (31 Dec 2015)
Reits investment provides me an opportunity to own properties of different market segments in smaller but affordable share of ownership. If you are a Reits investor, it may be good to compare Singapore Reits Index, i.e. SGX S-Reits 20 performance against the performance of individual Reit which you have owned.
With the gradual rise in interest rate on Nov 2015, we would anticipate the next gradual increase in federal interest rate will be probably by early next year. This might pose more pressure in those REITs with higher gearing ratios.
Therefore, 2016-2017 may be a good year to pick up defensive REITs with lower gearing ratio to achieve better yields of say 8% per annum or more.