REIT Watch - Retail investors made a net purchase of S$3.9 billion of S-REIT in the first half of 2023

Net flow of S-Reits sub-segment in the first half of 2023

Top 5 Institutions/Retail Net Buy/Sell S-Reits in H1 Top 5 Institutions/Retail Net Purchases/Sellers in the First Half of 20232023

In the first half of 2023, after experiencing a challenging decline of 12% in 2022, the total return on the iEdge S-REIT Index increased by 2.1%.

Retail investors continued to be the main driving force of H1 S-REITs' capital flow activity in 2023, with a cumulative net retail inflow of S$389 million, while institutional investors had a net outflow of S$485 million. A similar trend was seen a year ago during H1 2022, when the industry achieved a net retail inflow of S$443 million and a net institutional outflow of S$360 million.

According to market segments, data center real estate investment trusts received the highest net institutional inflows and net retail inflows in H1 2023, at S$26 million and SGD 43 million respectively. On the other hand, diversified S-reits had the highest net institutional outflow during this period, at S$348 million, while net retail outflows were S$280 million.

$Keppel DC Reit(AJBU.SG)$ It is the best performance in the first half of 2023, with a total return of 25%. It also received the largest net institutional inflow of SGD 36 million in H1 2023. This is the opposite of what happened during H1 2022 a year ago, when institutional investors were net sellers of the stock, with a net outflow of S$120 million.

The net property income of Keppel DC Real Estate Investment Trust increased by 6.3% in Q1 2023, which is equivalent to a 3% increase in unit distribution over the same period. It believes that data center demand will continue to be driven by long-term trends such as cloud computing and digital transformation plans. The results of H1 2023 are expected to be reported on July 24, 2023.

The net inflow of $Pillarstone Capital REIT (PRLE) $ to the second largest institution in H1 2023 is S$20 million. After H1's net inflow of S$1 million in 2022, institutional investors continued to be net buyers of real estate investment trusts.

In addition to Paragon REITs, Capitaland Ascott Trust and Sabana Industrial REIT also had significant net inflows from institutional investors during H1 2023 and H1 2022.

$CapLand Ascott T(HMN.SG)$ It received net institutional inflows of SGD 17 million and SGD 41 million in the first half of 2023 and SGD 41 million respectively in the first half of 2023 and the first half of 2022, while $Sabana Reit(M1GU.SG)$ In H1 2023 and H1 2022, they received net institutional inflows of S$5 million and S$9 million respectively.

The highest net inflow of retail investors in S-real estate investment trusts was in H1, with 2023 people $Suntec Reit(T82U.SG)$ S$140 million, $Lendlease Reit(JYEU.SG)$ S$57 million and $Keppel Reit(K71U.SG)$ 52 million Singapore dollars. $Lendlease Reit(JYEU.SG)$ In the same period last year, retail investors also achieved a net inflow, receiving S$11 million in H1 2022.