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Business Times
a day ago
- Business
- Business Times
Reit ETFs see 40% AUM growth in past year as S-Reits regain appeal
[SINGAPORE] Over the past 12 months, Singapore-listed real estate investment trust (Reit) exchange-traded funds (ETFs) have seen more than S$300 million in net new inflows, reflecting continued investor demand. The combined assets under management (AUM) of these ETFs have surged by 40 per cent over a year, reaching an all-time high of S$1.2 billion by the end of the first half of 2025. This growth in AUM has outpaced the Reit sector's price movements, as reflected by the iEdge S-Reit Index and FTSE EPRA Nareit Index which reported total returns of 10.5 per cent and 12.5 per cent respectively. Both retail and institutional investors have actively contributed to the growth of AUM for Reit ETFs in Singapore. On average, the five Reit ETFs have posted total returns of 10.7 per cent over the past year ended Jun 30, 2025. Trading activity for these Reit ETFs also surged by 34 per cent quarter on quarter for the April to June 2025 period. Among the top 10 traded ETFs listed in Singapore, the Lion-Phillip S-Reit ETF and the NikkoAM-StraitsTrading Asia ex Japan Reit ETF stood out, recording the highest net inflows. The Lion-Phillip S-Reit ETF, Singapore's first and largest ETF focusing on S-Reits, tracks the Morningstar Singapore Reit Yield Focus Index, which includes 21 constituents and boasts an AUM of more than S$540 million. As one of the two pure-play Singapore Reit ETFs, it offers a dividend yield of 5.8 per cent and achieved total returns of 4.1 per cent in the first half of 2025. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The NikkoAM-StraitsTrading Asia ex Japan Reit ETF tracks the FTSE EPRA Nareit Asia ex Japan Net Total Return Reit Index, consisting of 43 constituents across Singapore, Malaysia, Hong Kong, India, South Korea, Thailand and the Philippines. Singapore remains the largest exposure at 68 per cent of the portfolio. Notably, this ETF distributes quarterly dividends, unlike the others which distribute semi-annually. It ranks as the second-largest Reit ETF by AUM, with over S$420 million, yielding 5.8 per cent in dividends and generating total returns of 6.0 per cent in the first half of 2025. In terms of returns, the UOB Asia-Pacific Green Reit ETF was the best-performing Reit ETF for the first half of 2025, returning 9.3 per cent in total returns. The underlying index, the iEdge-UOB Apac Yield Focus Green Reit Index, emphasises environmental factors such as energy consumption, water consumption, GHG emissions and green building certifications. The index has 50 Reits across Australia (42 per cent), Japan (32 per cent), Singapore (19 per cent), and Hong Kong (7 per cent). The UOB Apac Green Reit ETF presents an option for investors seeking sustainable investments while maintaining highly competitive dividend yields. The CSOP iEdge S-Reit Leaders ETF has the highest dividend yield among the five Reit ETFs at 6 per cent. It tracks the iEdge S-Reit Leaders Index, which comprises 22 S-Reits. Phillip Securities research analyst Helena Wang recently initiated coverage on the Phillip SGX Apac Dividend Leaders Reit ETF for its exposure to 31 Reits in the Asia-Pacific ex Japan region, and its consistent dividend growth. The report highlighted that since 2021, dividends have remained steady between four and six Singapore cents per share. The ETF's book value has also become more attractive, historically trading at 1.3 times the price-to-book ratio, and now at 0.8 times. The ETF tracks the iEdge Apac ex-Japan Dividend Leaders Reit Index, which selects Reits based on their dividend payout. SGX RESEARCH The writer is a research analyst at SGX. For more research and information on Singapore's Reit sector, visit for the S-Reits & Property Trusts Chartbook.
Business Times
06-07-2025
- Business
- Business Times
S-Reits with best debt profiles have an average gearing ratio of 33.5%
[singapore] Last month, the US Federal Reserve opted to maintain its benchmark interest rate, adopting a cautious stance despite speculation about a potential rate cut as early as July, with chair Jerome Powell stating that future decisions will be data-dependent. Market analysts now predict a 75-basis-point (bps) cut in 2025, up from the previously anticipated 50 bps. Singapore real estate investment trusts (S-Reits) have delivered a commendable performance, closing the first half of 2025 with a 4.2 per cent total return, as indicated by the iEdge S-Reit Index. Over the past 12 months, S-Reits have delivered a 10.5 per cent total return. Notably, the top 10 best-performing S-Reits have delivered double-digit returns in H1 2025. They include Frasers Hospitality Trust (21.5 per cent), CapitaLand Integrated Commercial Trust (14.3 per cent), Frasers Centrepoint Trust (11.4 per cent), CapitaLand Ascendas Reit (10.1 per cent) and Parkway Life Reit (10 per cent). The iEdge S-Reit Index concluded H1 2025 at 1,021 and touched 1,030 on Jul 3, a level which was previously tested three times – in November 2024, January 2025 and April 2025. The consensus estimate target price for the next 12 months is pegged at 1,159. From a balance-sheet standpoint, the S-Reit sector maintains an average gearing ratio of 40 per cent, reflecting prudent capital management; it is also well below the regulatory limit of 50 per cent. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The 10 S-Reits with the lowest gearing ratios are Sasseur Reit , Aims Apac Reit , Keppel DC Reit , Far East Hospitality Trust , Frasers Hospitality Trust, Frasers Logistics & Commercial Trust , Parkway Life Reit, Starhill Global Reit , IReit Global and Mapletree Pan Asia Commercial Trust . On average, these 10 have a gearing ratio of 33.5 per cent. Sasseur Reit, notable for its low gearing ratio of 25.9 per cent for the first quarter of 2025, reported a slight year-on-year (yoy) dip of 0.2 per cent in its entrusted management agreement (EMA) rental income for the same period. This was primarily due to weaker foreign exchange rates and lower variable income. However, in renminbi terms, Q1 2025 EMA rental income saw a 1.6 per cent yoy increase. The Reit's portfolio occupancy rate improved to 98.9 per cent, up from 97.9 per cent in the previous year, with higher occupancy recorded at its Chongqing Bishan and Kunming outlet malls in China. Its management remains committed to maintaining a healthy balance sheet to seize potential opportunistic acquisitions. Sasseur Reit has the right of first refusal on two assets in Xi'an and Guiyang, and could also look for acquisition opportunities within other assets managed by its sponsor. As at Q1 2025, its sponsor Sasseur Group manages a total of 18 outlet malls, including the four properties owned by the group. UOB Kay Hian research noted that the recent preference for quality names resulted in the three-month compounded Singapore Overnight Rate Average easing by 98 bps to 2.09 per cent in H1 2025. Despite this significant drop, there has been no positive price movement or re-rating for S-Reits. The research house expects broader recovery in liquidity from possible Fed rate cuts at the end of 2025 to lift the sector. However, global geopolitical uncertainties and tariff risks remain in focus, and investors should stay nimble and watch data as they head into the second half of the year. SGX RESEARCH The writer is a research analyst at SGX. For more research and information on Singapore's Reit sector, visit for the S-Reits & Property Trusts Chartbook.
Business Times
06-07-2025
- Business
- Business Times
S-Reits with lowest relative gearing have an average ratio of 33.5%
[singapore] Last month, the US Federal Reserve opted to maintain its benchmark interest rate, adopting a cautious stance despite speculation about a potential rate cut as early as July, with chair Jerome Powell stating that future decisions will be data-dependent. Market analysts now predict a 75-basis-point (bps) cut in 2025, up from the previously anticipated 50 bps. Singapore real estate investment trusts (S-Reits) have delivered a commendable performance, closing the first half of 2025 with a 4.2 per cent total return, as indicated by the iEdge S-Reit Index. Over the past 12 months, S-Reits have delivered a 10.5 per cent total return. Notably, the top 10 best-performing S-Reits have delivered double-digit returns in H1 2025. They include Frasers Hospitality Trust (21.5 per cent), CapitaLand Integrated Commercial Trust (14.3 per cent), Frasers Centrepoint Trust (11.4 per cent), CapitaLand Ascendas Reit (10.1 per cent) and Parkway Life Reit (10 per cent). The iEdge S-Reit Index concluded H1 2025 at 1,021 and touched 1,030 on Jul 3, a level which was previously tested three times – in November 2024, January 2025 and April 2025. The consensus estimate target price for the next 12 months is pegged at 1,159. From a balance-sheet standpoint, the S-Reit sector maintains an average gearing ratio of 40 per cent, reflecting prudent capital management; it is also well below the regulatory limit of 50 per cent. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The 10 S-Reits with the lowest gearing ratios are Sasseur Reit , Aims Apac Reit , Keppel DC Reit , Far East Hospitality Trust , Frasers Hospitality Trust, Frasers Logistics & Commercial Trust , Parkway Life Reit, Starhill Global Reit , IReit Global and Mapletree Pan Asia Commercial Trust . On average, these 10 have a gearing ratio of 33.5 per cent. Sasseur Reit, notable for its low gearing ratio of 25.9 per cent for the first quarter of 2025, reported a slight year-on-year (yoy) dip of 0.2 per cent in its entrusted management agreement (EMA) rental income for the same period. This was primarily due to weaker foreign exchange rates and lower variable income. However, in renminbi terms, Q1 2025 EMA rental income saw a 1.6 per cent yoy increase. The Reit's portfolio occupancy rate improved to 98.9 per cent, up from 97.9 per cent in the previous year, with higher occupancy recorded at its Chongqing Bishan and Kunming outlet malls in China. Its management remains committed to maintaining a healthy balance sheet to seize potential opportunistic acquisitions. Sasseur Reit has the right of first refusal on two assets in Xi'an and Guiyang, and could also look for acquisition opportunities within other assets managed by its sponsor. As at Q1 2025, its sponsor Sasseur Group manages a total of 18 outlet malls, including the four properties owned by the group. UOB Kay Hian research noted that the recent preference for quality names resulted in the three-month compounded Singapore Overnight Rate Average easing by 98 bps to 2.09 per cent in H1 2025. Despite this significant drop, there has been no positive price movement or re-rating for S-Reits. The research house expects broader recovery in liquidity from possible Fed rate cuts at the end of 2025 to lift the sector. However, global geopolitical uncertainties and tariff risks remain in focus, and investors should stay nimble and watch data as they head into the second half of the year. SGX RESEARCH The writer is a research analyst at SGX. For more research and information on Singapore's Reit sector, visit for the S-Reits & Property Trusts Chartbook.
Business Times
06-07-2025
- Business
- Business Times
Top S-Reits with lowest gearing ratios average 33.5% as investors await rate cuts
[singapore] Last month, the US Federal Reserve opted to maintain its benchmark interest rate, adopting a cautious stance despite speculation about a potential rate cut as early as July, with chair Jerome Powell stating that future decisions will be data-dependent. Market analysts now predict a 75-basis-point (bps) cut in 2025, up from the previously anticipated 50 bps. Singapore real estate investment trusts (S-Reits) have delivered a commendable performance, closing the first half of 2025 with a 4.2 per cent total return, as indicated by the iEdge S-Reit Index. Over the past 12 months, S-Reits have delivered a 10.5 per cent total return. Notably, the top 10 best-performing S-Reits have delivered double-digit returns in H1 2025. They include Frasers Hospitality Trust (21.5 per cent), CapitaLand Integrated Commercial Trust (14.3 per cent), Frasers Centrepoint Trust (11.4 per cent), CapitaLand Ascendas Reit (10.1 per cent) and Parkway Life Reit (10 per cent). The iEdge S-Reit Index concluded H1 2025 at 1,021 and touched 1,030 on Jul 3, a level which was previously tested three times – in November 2024, January 2025 and April 2025. The consensus estimate target price for the next 12 months is pegged at 1,159. From a balance-sheet standpoint, the S-Reit sector maintains an average gearing ratio of 40 per cent, reflecting prudent capital management; it is also well below the regulatory limit of 50 per cent. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The 10 S-Reits with the lowest gearing ratios are Sasseur Reit , Aims Apac Reit , Keppel DC Reit , Far East Hospitality Trust , Frasers Hospitality Trust, Frasers Logistics & Commercial Trust , Parkway Life Reit, Starhill Global Reit , IReit Global and Mapletree Pan Asia Commercial Trust . On average, these 10 have a gearing ratio of 33.5 per cent. Sasseur Reit, notable for its low gearing ratio of 25.9 per cent for the first quarter of 2025, reported a slight year-on-year (yoy) dip of 0.2 per cent in its entrusted management agreement (EMA) rental income for the same period. This was primarily due to weaker foreign exchange rates and lower variable income. However, in renminbi terms, Q1 2025 EMA rental income saw a 1.6 per cent yoy increase. The Reit's portfolio occupancy rate improved to 98.9 per cent, up from 97.9 per cent in the previous year, with higher occupancy recorded at its Chongqing Bishan and Kunming outlet malls in China. Its management remains committed to maintaining a healthy balance sheet to seize potential opportunistic acquisitions. Sasseur Reit has the right of first refusal on two assets in Xi'an and Guiyang, and could also look for acquisition opportunities within other assets managed by its sponsor. As at Q1 2025, its sponsor Sasseur Group manages a total of 18 outlet malls, including the four properties owned by the group. UOB Kay Hian research noted that the recent preference for quality names resulted in the three-month compounded Singapore Overnight Rate Average easing by 98 bps to 2.09 per cent in H1 2025. Despite this significant drop, there has been no positive price movement or re-rating for S-Reits. The research house expects broader recovery in liquidity from possible Fed rate cuts at the end of 2025 to lift the sector. However, global geopolitical uncertainties and tariff risks remain in focus, and investors should stay nimble and watch data as they head into the second half of the year. The writer is a research analyst at SGX. For more research and information on Singapore's Reit sector, visit for the S-Reits & Property Trusts Chartbook.
Business Times
18-05-2025
- Business
- Business Times
Healthcare S-Reits see encouraging institutional interest so far this year
HEALTHCARE S-Reits have been the top-performing Reit sub-sector this year, offering an average total return of 6.2 per cent against a 1.1 per cent decline in the iEdge S-Reit Index. The sub-sector also outperformed other Reit sub-sectors over the one-year and three-year periods, clocking average returns of 16.8 and 6.2 per cent, respectively. The two healthcare S-Reits listed in Singapore have reported net institutional inflows amounting to S$17.6 million in the year to date. In contrast, the S-Reit sector as a whole suffered net institutional outflows totalling S$527 million over the same period. Here is a look at the two healthcare S-Reits' business updates for the first quarter of 2025. ParkwayLife Reit ParkwayLife Reit (PLife Reit) is one of the largest listed healthcare Reits in Asia. Its portfolio value stands at about S$2.46 billion, made up of healthcare properties across Singapore, Japan and France. In the first quarter of 2025, PLife Reit posted increases in both gross revenue and net property income (NPI). Gross revenue rose by 7.3 per cent year on year to S$39 million in Q1 2025; NPI went up 7.5 per cent over the same period, to S$36.8 million. The strong performance was driven by contributions from a nursing home acquired in Japan last August, and 11 other homes acquired in France in December 2024. The gains were, however, partially offset by the depreciation of the Japanese yen. Step-up lease agreements in Singapore properties also contributed to the higher distributable income in Q1 2025. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The Reit's distributable income was S$25 million, up 9.1 per cent year on year. Distribution per unit (DPU) for the period is 1.3 per cent higher at S$0.0384 for the period, and will be distributed in H1 2025. As part of its portfolio optimisation strategy, the Reit also announced that it was divesting its Malaysia portfolio, which accounts for 0.2 per cent of its gross revenue, at S$6.09 million. With this move, the Reit marks its exit from the country. CGSI Research's Lock Mun Yee notes that PLife Reit's income profile is underpinned by a robust rental structure, with built-in rent escalation features and its Singapore portfolio contributing to 65.2 and 66.2 per cent of its total Q1 2025 revenue and NPI, respectively. She also highlights that the Reit has a strong balance sheet, with a gearing ratio of 36.1 per cent, and that 90 per cent of its interest-rate exposure is hedged into fixed rates. Bloomberg pegs PLife Reit's 12-month consensus estimated target price at S$4.70. First Reit For the first quarter of 2025 period, First Reit posted a 2.8 per cent year-on-year decline in both rental and other income, and net property and other income to S$25.4 million and S$24.6 million, respectively. The decline was attributed to the depreciation of the Japanese yen and Indonesian rupiah against the Singdollar. As a result, distributable amount declined by 2.2 per cent year on year, and DPU dipped to S$0.0058 for the period. In local currency terms, Q1 2025 rental and other income for the Reit's Indonesia portfolio rose by 5.5 per cent year on year, while that of Japan remained unchanged. As at Mar 31, 2025, First Reit's gearing rose slightly to 40.7 per cent, and has 56.7 per cent of the debt portfolio either on fixed rates or hedged. Lower interest rates led to a drop in cost of debt from 5 per cent in Q1 2024 to 4.7 per cent in Q1 2025, and the Reit has no refinancing requirements until May 2026. Turning to its strategic review, First Reit says a marketing agent has been appointed to run a competitive and robust price-discovery process which entailed reaching out to more than 60 parties to solicit interest for the Indonesia portfolio. First Reit has also approached multiple parties to explore options relating to the business as part of assessing opportunities. Phillip Securities Research's Darren Chan notes that First Reit is trading at an attractive FY 2025e DPU yield of 9.2 per cent, and that organic growth will come from more Indonesian hospitals achieving performance-based rent. Bloomberg says First Reit has a 12-month consensus estimated target price of S$0.30. The writer is a research analyst at SGX. For more research and information on Singapore's Reit sector, visit for the S-Reits & Property Trusts Chartbook.
