Real Estate Investment Trusts (REITs) are funds that invest in a portfolio of income generating real estate assets such as shopping malls, offices or hotels, usually with a view to generating income for unit holders of the fund (i.e. investors of the REITs).
What are Real Estate Investment Trusts (REITs)?
Assets of REITs are professionally managed and revenues generated from assets (primarily rental income) are normally distributed at regular intervals to investors. REITs allow investors to access real property assets, and share the benefits and risks of owning a portfolio of properties.
Units of REITs are bought and sold like other securities listed on SGX at market driven prices.
Why invest in Real Estate Investment Trusts (REITs)?
Portfolio Diversification- REITs typically own multi-property portfolios with diversified tenant pools.
Income Distribution- REITs typically have regular cash flows since most of the revenues are derived from rental payments under lease agreements with specific tenure. REITs are required to distribute at least 90% of taxable income each year to enjoy tax exempt status by IRAS (subject to certain conditions).
Tax Benefits- Individual investors enjoy a tax-exempt distribution which comes in the form of dividends in the REITs structure.
SGX is one of Asia's regional hub for Real Estate Investment Trusts (REITs) & Property Trusts. Based on the FTSE ST REIT Index, the dividend yield for Singapore REITs have been 4.3 – 6.8% over a period of 5 years (Source: Bloomberg, 2013-2017). Over 75% of Singapore REITs & Property Trusts own offshore assets across Asia Pacific, South Asia & Europe.
Why Trade REITs & Property Trusts on SGX?
Singapore has 43 REITs & Property Trusts with a combined market capitalisation of S$107B, representing c.12% of Singapore's overall listed stocks
The REITs & Property Trusts offer wide diversity across property sub-segments
Average dividend yield of 6.3% (as of end February '22)
Average 10-year annualised total return of 8.5%
Average gearing ratio of 37%*, lower than the regulatory limit of 50%
10 year market cap CAGR of 11%
Product Features
Trading Hours
Follows SGX securities market trading hours: 9.00am – 12.00pm and 1.00pm – 5.00pm
Pre-open routine (8.30am – 9.00am)
Pre-close routine (5.00pm – 5.06pm)
Board Lot Size
100 units or otherwise specified
Currency
SGD, AUD, HKD, USD, EUR (if applicable)
Settlement Basis
T+3 settlement in CDP
SG REITs Movers for 5/11
For the latest SG REITs Movers，you are welcomed to refer to SG REITs Movers.