OVERVIEW
In 2014, Singapore real estate investment trust (S-REIT) sector was resilient despite the volatile
market condition. The FTSE Straits Times REIT Index appreciated 9.2% in 2014, outperforming the
Straits Times Index which grew 6.2% over the same period. The average distribution yield of S-REITs
increased to 6.4% as at 31 December 2014 from 6.1% as at 31 December 2013. This was
approximately 400 basis points above the Singapore Government 10-year bond yield of 2.3% as at
31 December 2014. Compared to other Asian REITs, S-REITs’ yield spread was the highest.
Asian REITs’ Yield Spread
(%)
0.3
1.9
4.1
1.6
6.4
3.6
5.1
6.3
2.1
Singapore
Japan
Hong Kong
Malaysia
Taiwan
REITs' Weighted Average Distribution Yield
Government 10-Year Bond Yield
2.3
Country
Yield Spread (bps)
Singapore
407
Japan
331
Hong Kong
315
Malaysia
223
Taiwan
50
Source: Bloomberg, 31 December 2014.
From a regulatory standpoint, the Monetary Authority of Singapore (MAS) released a consultation
paper in October 2014 with proposals aimed at fostering stronger corporate governance practices,
better aligning the interests of REIT managers and unitholders, as well as providing REITs with more
operational flexibility.
The REIT Association of Singapore (REITAS) which aims to be the representative voice of the S-REIT
industry, was officially launched on 17 November 2014. Since its inception, the association actively
gathered feedback from stakeholders on the MAS consultation paper for greater engagement with
the regulators and has been planning numerous initiatives to promote the industry.
Singapore has established itself as a major Asian hub for real estate investment. In 2014, there were
five new S-REITs and real estate business trusts listed on the Singapore Exchange, with the
introduction of new asset classes with the listing of Keppel DC REIT, which focuses on data centres
Singapore REIT Sector
100 | CapitaMall Trust Annual Report 2014
