Page 93 - ar2013

Business
Review
Singapore REIT
Sector
tapering of the United
States (US) bond purchase
stimulus programme. The average
distribution yield of S-REITs
increased to 6.1% as at
31 December 2013 from
5.6% as at 31 December 2012.
This was approximately 350
basis points above the Singapore
government 10-year bond yield
of 2.6% as at 31 December 2013.
Compared to other Asian REITs,
S-REITs’ yield spreads were
the highest.
OVERVIEW
Singapore real estate investment
trusts (S-REITs) and business
trusts have enjoyed a surge in
popularity in the past few years as
investors chased after yields amid
a low interest rate environment.
In 2013, the FTSE ST Real Estate
Investment Trusts Index which
measures the performance
of S-REITs, declined by 8.9%
compared to the beginning of the
year, underperforming the Straits
Times Index amid uncertainty over
Country
Yield Spread
(bps)
Singapore 357
Japan 269
Hong Kong 236
Malaysia 148
Taiwan 27
Source: Bloomberg, 31 December 2013.
ASIAN REITS’ YIELD SPREAD
(%)
2.0
1.7 Taiwan
5.6
4.1 Malaysia
4.7
2.3
Hong Kong
3.4
0.7
Japan
6.1
2.6
Singapore
REITs’ Weighted Average Distribution Yield Government 10-Year Bond Yield
2013 saw the listing of an
impressive number of six S-REITs
and real estate business trusts
on the Singapore Exchange. On
27 January 2014, OUE Commercial
REIT was the first S-REIT to
be listed in 2014, contributing
to a total of 31 S-REITs and
six real estate business trusts
listed in Singapore.
91