OREANDA-NEWS. Singapore is the largest Real Estate Investment Trusts (REITs) hub in Asia Pacific ex-Japan, with 28 REITs and six Stapled Trusts listed on the Singapore Exchange (SGX). REITs invest in a wide range of diversified real estate assets such as office, residential, retail, hospitality, industrial properties or hi-tech parks. Together, the 34 trusts have averaged a total return of 6.1% in the year thus far taking into account unit prices and dividend distributions.

REITs that are currently trading closest to their 12 month highs are Frasers Commercial Trust, Soilbuild Business Space REIT, Keppel DC REIT, CapitaLand Retail China Trust and SPH REIT. For the 31 trusts that have been listed for the past 12 months, an average total return of 11.0% was generated. These 28 REITs and six Stapled trusts also maintain an average distribution yield of 6.3%.

The average price-to-book (P/B) ratio of the sector is currently 1.0. This compares to 2.0 for the MSCI World REIT index which also maintains a dividend yield of 3.7%. The FTSE EPRA/NAREIT Asia REITs Index maintains a P/B ratio of 1.4 and dividend yield 3.9%. The P/B ratio compares the unit price of a trust to the balance sheet of the trust via the net asset value per unit of the trust.

Details of the 28 REITs and 6 stapled trusts that make up the GICS ® REITS sector are detailed below. Please note that by clicking directly on the stock name below will take you to the relevant profile page on SGX StockFacts.

REITs are traded on major exchanges just like stocks. REITs allow investors to share in the income generated by the tenants of properties, while bearing some of the risks associated with property values and financing costs. Like stocks, risks involved with REITs include market risk, where REIT units decline in value. Rising interest rates can also affect REITs because they increase borrowing costs and could result in lower distribution per unit (DPU) yields and reduced asset values.