• Last week, the iEdge S-REIT Index gained 0.5%, led by Cromwell European REIT, CDL Hospitality Trusts and Manulife US REIT averaging 4.3% returns. The FTSE ST REIT Index gained 0.7% over the five sessions, with the trusts of the S-REIT Sector making up more than half the 20 strongest FTSE ST All-Share Index constituents over the week.
   
• The S-REIT Sector was recipient to S$14 million in net institutional inflow over the five sessions, with Manulife US REIT, Mapletree Logistics Trust, CDL Hospitality Trusts, First REIT and ARA Logos Logistics Trust recipient to the highest net institutional inflow proportionate to market capitalisation.
   
• Cromwell European REIT is a diversified, pan-European REIT with a commercial real estate portfolio valued at €2.3 billion. The portfolio value has grown 70% since the November 2017 IPO. The REIT has been focused on logistics acquisitions since 2020, and earlier this year rolled out a distribution reinvestment plan for unitholders.
   
• Manulife US REIT invests in United States office properties. With a US$2.0 billion portfolio value at the end of 2020, growing 150% since the May 2016 IPO. For its next leg of growth, the REIT is targeting magnet cities with growing tech tenant presence, robust population growth, business friendly/corporate in-migration and lower cost of living.

With global equity markets increasingly have looked to economic normalisation for most of 2Q21, the week ending 25 June saw a wide span of REITs and property trusts join the Technology Sector and Agribusiness plays as the strongest segments of the FTSE ST All-Share Index.

While the FTSE ST All-Share Index declined 0.7% over the five sessions, the FTSE ST REIT Index gained 0.7%, in-line with the gain of global REITs. Moreover, as many as 11 REITs and/or property trusts were among the 20 strongest performing constituents of the FTSE ST All-Share Index over the week. Since the end of 2020, the valuation of the S-REIT Sector has improved from averaging a 4% discount to book value at the end of 2020, to a current 3% premium. Likewise, global REITs have seen their median premium to book value extend by 7% since the end of 2020.

The 40 trusts that make up the S-REIT sector are tabled below and sort by the strongest performance for the week ending 25 June.

Source: SGX, Refinitiv, Bloomberg (Data as of 25 June 2021) * Stapled Trust ** Business Trust.