To The Moon

The iEdge S-Reit Index ended November with a 7.4% total return, reversing the 7.0% decline seen in October. Similar performance was seen across most major Reit markets after signals from the US Federal Reserve that rate hikes are likely over, with the broader FTSE EPRA Nareit Developed Index gaining 7.8% in total returns over the month. The November rebound brought the iEdge S-Reit Index’s year-to-date decline from 9.0% as at end October, to 2.2%t as at end November. This also marks the largest monthly total return gains for the Index since November 2020. REIT Watch - iEdge S-Reit Index monthly total returns Four trusts maintained double- digit total return gains in the year to-date till end November – $DigiCore Reit USD(DCRU.SI)$ (19.6%), $Frasers HTrust(ACV.SI)$ (19.2%), $AIMS APAC Reit(O5RU.SI)$ (10.7%) and $Far East HTrust(Q5T.SI)$ (10.2%). All S-Reits and property trusts that traded in November ended the month in positive territory, with 11 trusts registering double-digit gains. Office S-Reits was the best performing sub-segment, averaging 19% total returns, followed by data centre S-Reits averaging 13.9% and diversified S-Reits averaging 8.1%. In terms of the sector’s net fund flows over the month, retail investors net sold S$64 million, after six consecutive months of net buying, while institutional investors net sold S$3 million. REIT Watch - S-Reits and property trusts performance and fund flow breakdown by sub-segments $CapLand Ascendas REIT(A17U.SI)$ was the top net bought S-Reit by institutional investors last month at S$40 million, followed by $Frasers L&C Tr(BUOU.SI)$ and $CapLand IntCom T(C38U.SI)$ at S$20 million. Two S-Reits received net inflows from both institutional and retail investors in November. $Keppel DC Reit(AJBU.SI)$ received S$7 million and S$3 million of net inflows from institutional and retail investors respectively. On a smaller scale, $OUE Com Reit(TS0U.SI)$ received S$0.5 million and S$0.1 million of net inflows from institutional and retail investors respectively. Last week, FTSE Russell announced that there will be no changes to the constituents of the STI Index, following the December 2023 quarterly review. However, Golden Agri-Resources is now part of the STI reserve list, while $KEPPEL REIT(K71U.SI)$ was removed. The latest STI reserve list consists of (in alphabetical order): $CapLand Ascott T(HMN.SI)$ , $Frasers Cpt Tr(J69U.SI)$ , $Golden Agri-Res(E5H.SI)$ , $Keppel DC Reit(AJBU.SI)$ and $Suntec Reit(T82U.SI)$ . The four S-Reits in the STI reserve list saw average total returns of 6.1% in November, while the six S-Reits in the STI Index generated 7.5% in average total returns. Frasers Logistics and Commercial Trust was the best performing counter among the 20 S-Reits with 10.3% gains in November. https://www.sgx.com/research-education/market-updates/20231204-reit-watch-s-reits-rebound-74-cent-november-best-month-3