Singapore REITs Monthly Update (March 11th, 2025)

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Technical Analysis of FTSE ST REIT Index (FSTAS351020)


FTSE ST Real Estate Investment Trusts (FTSE ST REIT Index) decreased from 631.70 to 628.61 (-0.49%) compared to last month’s update. Singapore REITs index is trading sideways near the support level. It remains to be seen if the REIT index will break the support, which has been tested in April 2024.

  • Short-term direction: Sideways
  • Medium-term direction: Sideways
  • Long-term direction: Sideways
  • Immediate Support: Blue Support Line 
  • Immediate Resistance: 50D SMA and 200D SMA

 

FTSE REIT Index Chart (2 years)

 

Previous chart on FTSE ST REIT index can be found in the last post: Singapore REIT Fundamental Comparison Table on February 16th, 2025.

 

Fundamental Analysis of 38 Singapore REITs


The following is the compilation of 38 Singapore REITs with colour-coding of the Distribution Yield, Gearing Ratio and Price to NAV Ratio.

  • The Financial Ratios are based on past data and these are lagging indicators.
  • REITs highlighted in orange have the latest Q4 2024 values, otherwise they have the Q3 2024 values.
  • I have introduced weighted average (weighted by market cap) to the financial ratios, in addition to the existing simple average ratios. This is another perspective where smaller market cap REITs do not disproportionately affect the average ratios.

Data from REITsavvy Screener. https://screener.reitsavvy.com/

 

 

 

What does each Column mean?

  • FY DPU: If Green, FY DPU for the recent 4 Quarters is higher than that of the preceding 4 Quarters. If Lower, it is Red.
  • Yield (ttm): Yield, calculated by DPU (trailing twelve months) and Current Price as of March 11th, 2025.
  • Gearing (%): Leverage Ratio.
  • Price/NAV: Price to Book Value. Formula: Current Price over Net Asset Value per Unit.
  • Yield Spread (%): REIT yield (ttm) reference to Gov Bond Yields. REITs are referenced to SG Gov Bond Yield.

As of May 2024, all REITs’ Yield Spread will be referenced to SG Gov Bond Yields, regardless of trading currency.

Price/NAV Ratios Overview

  • Price/NAV increased to 0.93 (Weighted Average: 0.93)
    • Increased from 0.88 in February 2025.
    • Singapore Overall REIT sector is slightly undervalued
  • Most overvalued REITs (based on Price/NAV)
    ParkwayLife REIT 1.64
    Keppel DC REIT 1.34
    Mapletree Industrial Tr 1.17
    Capitaland Ascendas REIT 1.15
    Paragon REIT 1.03
    AIMS APAC REIT 0.98

    EC World REIT is currently suspended, however at current Price and NAV/Unit values it has a value of 7.00 (N.M)

  • Most undervalued REITs (based on Price/NAV)
    Prime US REIT 0.24
    Acrophyte Hospitality Trust 0.27
    Keppel Pacific Oak US REIT 0.30
    Manulife US REIT 0.30
    Lippo Malls Indonesia Retail Trust 0.35
    OUE REIT 0.48

Distribution Yields Overview

  • TTM Distribution Yield increased to 6.30%. (Weighted Average remained at 6.27%)    
    • Increased from 6.15% in February 2025. (Weighted Average was 6.27%)
    • 19 of 38 Singapore REITs have ttm distribution yields of above 7%.
  • Highest Distribution Yield REITs (ttm)
    IREIT Global 13.53
    Stoneweg European REIT 10.30
    Elite UK REIT 9.57
    First REIT 9.08
    ESR REIT 8.83
    Sasseur REIT 8.81

    Reminder that these yield numbers are based on current prices. 

    • Some REITs opted for semi-annual reporting and thus no quarterly DPU was announced.
    • A High Yield should not be the sole ratio to look for when choosing a REIT to invest in.
  • Yield Spread widened to 3.66%. (Weighted Average tightened slightly to 3.90%)     
    • Widened from 3.30% in February 2025. (Weighted Average was 3.92%)
    • From May 2024 onwards, all my yield spread measurements are now in relation to SG Gov Bond Yields, no longer a mix with US Gov Bond Yields.

 

Gearing Ratios Overview

  • Gearing Ratio decreased to 38.29%. (Weighted Average: 38.15%)
    • Decreased from 39.52% in February 2025. (Weighted Average: 38.26%)  
    • Gearing Ratios are updated quarterly. All values are based on the most recent Q4 2024 updates.
    • S-REITs Gearing Ratio has been on a steady uptrend. It was 35.55% in Q4 2019.
  • Highest Gearing Ratio REITs
    Manulife US REIT 60.8
    EC World REIT 56.5
    Prime US REIT 46.7
    Keppel Pacific Oak US REIT 43.7
    ESR REIT 42.8
    Elite UK REIT 42.5

    MUST and EC World REIT’s gearing ratio has exceeded MAS’s gearing limit of 50%. However, the aggregate leverage limit is not considered to be breached if exceeding the limit is due to circumstances beyond the control of the REIT Manager.

Market Capitalisation Overview

  • Total Singapore REIT Market Capitalisation decreased by 0.18% to S$87.81 Billion.
    • Decreased from S$87.81 Billion in February 2025.
  • Biggest Market Capitalisation REITs (S$m):
    Capitaland Integrated Commercial Trust 14815.89
    Capitaland Ascendas REIT 11176.00
    Mapletree Logistics Tr 6322.50
    Mapletree Pan Asia Commercial Trust 6316.68
    Mapletree Industrial Tr 5809.92
    Keppel DC REIT 4528.45
  • Smallest Market Capitalisation REITs (S$m):
    Acrophyte Hospitality Trust 116.02
    Manulife US REIT 128.45
    Lippo Malls Indonesia Retail Trust 153.94
    Prime US REIT 170.04
    Elite UK REIT 178.26
    Keppel Pacific Oak US REIT 219.33

Disclaimer: The above table is best used for “screening and shortlisting only”. It is NOT for investing (Buy / Sell) decision. If you want to know more about investing in REITs, scroll down for more information on the REITs courses.

 

Top 10 Best/Worst Performers of February 2024


 

Refer to the Detailed 2024 S-REITs Performance Here.

SG 10 Year Government Bond Yield

  • SG 10 Year: 2.64% (decreased from 2.85%)

 

Summary


Singapore REITs sector is consolidating at the support level of about 619 of FTSE ST REIT Index. The US 10Y Risk Free Rate has dropped to 4.24% and currently forming a Triple Tops chart pattern.  Singapore REITs sector has very strong inversed correlation with US 10Y Risk Free Rate and it is predicted the Singapore REIT may reverse to uptrend once there is a confirm trend reversal of the risk free rate.

 

US 10 Year Risk Free Rate

 

Fundamentally, the S-REIT sector is trading at a 12% discount to its fair value, with an average trailing twelve-month (TTM) yield of 6.30%. 

According to the current Fed Fund Rate projections from the CME Group, the market expects a 25 basis point cut by Q2 2025. The cut in interest rate will help to boost the DPU of the REITs which have shorter debt maturity profile and higher percentage of floating rate. However, the impact will only be reflected in the financial statement probably in Q2 or Q3 2025. 

 

 

 

Kenny Loh is a distinguished Wealth Advisory Director with a specialization in holistic investment planning and estate management. He excels in assisting clients to grow their investment capital and establish passive income streams for retirement. Kenny also facilitates tax-efficient portfolio transfers to beneficiaries, ensuring tax-efficient capital appreciation through risk mitigation approaches and optimized wealth transfer through strategic asset structuring.

In addition to his advisory role, Kenny is an esteemed SGX Academy trainer specializing in S-REIT investing and regularly shares his insights on MoneyFM 89.3. He holds the titles of Certified Estate & Legacy Planning Consultant and CERTIFIED FINANCIAL PLANNER (CFP).

With over a decade of experience in holistic estate planning, Kenny employs a unique “3-in-1 Will, LPA, and Standby Trust” solution to address clients’ social considerations, legal obligations, emotional needs, and family harmony. He holds double master’s degrees in Business Administration and Electrical Engineering, and is an Associate Estate Planning Practitioner (AEPP), a designation jointly awarded by The Society of Will Writers & Estate Planning Practitioners (SWWEPP) of the United Kingdom and Estate Planning Practitioner Limited (EPPL), the accreditation body for Asia.

You can join his Telegram channel #REITirement – SREIT Singapore REIT Market Update and Retirement related news. https://t.me/REITirement

Continue ReadingSingapore REITs Monthly Update (March 11th, 2025)

Money and Me: CPF Special Account Closure, Retirement Planning, and Investment Strategies with Kenny Loh

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18 February 2025

Money and Me: CPF Special Account Closure, Retirement Planning, and Investment Strategies with Kenny Loh

Has your CPF account closed already because you turned 55 this year? Join Michelle Martin as she dissects how to make your CPF work for you when you turn 55.

  • Should you keep your money in the 2.5% earning OA or move what you can to the RA for long-term 4%?
  • What are the pros and cons of investing with your OA after age 55 either through CPF or in the open market?
  • If liquidity of your CPF funds are your primary concern, what are your choices and what are the risks associated with each choice?
  • How can you use your monies to purchase T-bills, dividend stocks, and annuities?
  • What interest could you get with different asset classes based on today’s market.

Join Michelle and her guest Kenny Loh, Independent Financial Advisor to understand what happens when you turn 55 with your CPF and discover strategies and options to turning your hard earned CPF monies into income for the long-term.

Plus, get smart insights into tax considerations, liquidity needs, and long-term retirement planning strategies.

 

 
 

Key Highlights

  • [00:00:00] Introduction: Host: Michelle Martin, Guest: Kenny Loh, Independent Financial Advisor

  • [00:01:30] CPF Special Account Closure: What happens when you turn 55 and your CPF Special Account closes, Options to move money to the Retirement Account

  • [00:04:20] CPF Interest Rates Recap

  • [00:05:40] Investment Strategies Post-55: Strategies for investing with your CPF Ordinary Account, Pros and cons of different approaches

  • [00:07:05] CPFIS: T-Bills, Dividend Stocks, and Annuities: How to use your CPF monies to purchase these assets, Expected returns and associated risks

  • [00:11:50] Other considerations and Liquidity Needs: Smart insights into tax planning, Liquidity needs in retirement

  • [00:16:50] Tax considerations for transferring sums

  • [00:18:10] Long-term Retirement Planning: Strategies for long-term income, Importance of staying informed about market trends

Note: The above analysis are my own personal views and are NOT buy or sell recommendations. Investors who would like to leverage my extensive research and years of Singapore REIT investing experience can approach me separately for a REIT Portfolio Consultation.

 

Listen to his previous market outlook interviews here:

2025

2024

2023

2022

2021

2020

Kenny Loh is an Associate Wealth Advisory Director and REITs Specialist of Singapore’s top Independent Financial Advisor. He helps clients construct diversified portfolios consisting of different asset classes from REITs, Equities, Bonds, ETFs, Unit Trusts, Private Equity, Alternative Investments, Digital Assets and Fixed Maturity Funds to achieve an optimal risk adjusted return. Kenny is also a CERTIFIED FINANCIAL PLANNER, SGX Academy REIT Trainer, Certified IBF Trainer of Associate REIT Investment Advisor (ARIA) and also invited speaker of REITs Symposium and Invest Fair.  

You can join my Telegram channel #REITirement – SREIT Singapore REIT Market Update and Retirement related news. https://t.me/REITirement

Continue ReadingMoney and Me: CPF Special Account Closure, Retirement Planning, and Investment Strategies with Kenny Loh

Empowering Muslim Investors: Insights on Shariah-Compliant REITs at Rizq Symposium 2025

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🕌 I was honored to be invited as one of the speakers at the Rizq Symposium 2025 organised by Islamic Finance Singapore (IFSG Ltd.), where I presented to 150 Muslim participants on Islamic Real Estate Investment Trusts (REITs) listed on the Singapore Exchange.

According to the latest update from the FTSE ST Shariah Index, there were seven qualified REITs: hashtagShariahREITs
Keppel DC REIT
Keppel REIT
✅Frasers Logistics and Commercial Trust
Digital Core REIT
ESR-REIT
AIMS APAC REIT
Parkway Life Real Estate Investment Trust.

💡I was also pleased to announce that we had a booth showcasing REITsavvy’s capabilities. REITsavvy is the most comprehensive Singapore REITs screener and provided valuable information on Singapore REITs for international investors. Additionally, we featured the Islamic REITs Managed Account offered exclusively by Financial Alliance Pte Ltd and PhillipCapital B2B Team. hashtagIslamicREITs

💡Furthermore, Sani Hamid, the Head of Islamic Wealth Advisory at Financial Alliance, provided a Global Economic Outlook for 2025. My former colleague, Haron Mas, offered insights on Takaful and Estate Planning for the Muslim community.

🤙Any Muslim investors, either local or abroad, keen to explore investment opportunities in Islamic REITs or other Shariah-compliant investment solutions are welcome to reach out to me for further discussion.

𝐔𝐧𝐝𝐞𝐫𝐬𝐭𝐚𝐧𝐝𝐢𝐧𝐠 𝐒𝐡𝐚𝐫𝐢𝐚𝐡-𝐂𝐨𝐦𝐩𝐥𝐢𝐚𝐧𝐭 𝐑𝐄𝐈𝐓𝐬: 𝐀 𝐂𝐨𝐦𝐩𝐫𝐞𝐡𝐞𝐧𝐬𝐢𝐯𝐞 𝐆𝐮𝐢𝐝𝐞
https://lnkd.in/g9h-yrCF

Mr. Kenny Loh is a Certified Estate Planning Consultant and also a CERTIFIED FINANCIAL PLANNER (CFP). Kenny has more than 10 years in Holistic Estate Planning experience, using a unique “3-in-1 Will, LPA and Standby Trust” solution, to address his client’s social consideration, legal obligation, emotional needs and family’s harmony in his approach. Kenny has Double Master degree in Business Administration and Electrical Engineering, and also an AEPP (Associate Estate Planning Practitioner) jointly awarded by The Society of Will Writers & Estate Planning Practitioners (SWWEPP) of The United Kingdom, in collaboration with Estate Planning Practitioner Limited (EPPL), the accreditation body for Asia.
Check out Kenny Loh profile here and also Estate Planning Services.
Continue ReadingEmpowering Muslim Investors: Insights on Shariah-Compliant REITs at Rizq Symposium 2025