S-Reits rebound 9.5% from Apr 9 lows, tracking volatility in global markets

Business Times

04-05-2025

[singapore] The performance of Singapore-listed real estate investment trusts (S-Reits) in April 2025 was marked by significant movements, reflecting the broader volatility in global markets.
The iEdge S-Reit Index declined by 1.9 per cent over the month, slightly outperforming the Straits Times Index, which dropped 2.3 per cent. Furthermore, S-Reits outperformed the FTSE Epra/Nareit Global Reits Index, which saw a more substantial decline of 3 per cent.
The performance of the 30 constituents of the iEdge S-Reit Index was mixed in April, with 22 decliners and eight gainers. The three biggest decliners for the month were Manulife US Reit , Mapletree Logistics Trust (MLT) and ESR-Reit . On the other hand, the three strongest performers were Frasers Hospitality Trust (FHT), Frasers Centrepoint Trust (FCT) and CapitaLand Integrated Commercial Trust (CICT).
The performance in April was non-linear, with considerable fluctuations in the market. The iEdge S-Reit Index experienced a decline of 10.5 per cent from the end of March to Apr 9, followed by a rebound of 9.5 per cent from Apr 9 to 30. These movements tracked the volatility observed in global markets, as investors weighed tariff developments.
All 30 constituents of the iEdge S-Reit Index recorded gains over the three weeks from Apr 9 to 30. The three biggest gainers were Prime US Reit , CapitaLand China Trust and FHT. The top 10 performers in the iEdge S-Reit Index over the three weeks also mostly saw net institutional inflows, with a combined figure of S$23.2 million.
Despite the tumultuous month, S-Reits managed to stay in positive territory in the year to date as at Apr 30, with a total return of 0.8 per cent. This was in contrast to the FTSE Epra/Nareit Global Reits Index, which was down by 3 per cent over the same period.
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Around half of the iEdge S-Reit Index constituents delivered positive total returns in the year to date as at Apr 30. The top three gainers for the first four months of 2025 were Parkway Life Reit , CICT and FHT.
April also saw notable fund flows in the S-Reits market. Institutional and retail investors were net sellers. Institutional investors net sold S$90.3 million, and retail investors net sold S$54.6 million over the month.
The Reits that experienced the largest outflows from institutional investors included MLT, Mapletree Industrial Trust and ESR-Reit. Meanwhile, the Reits that saw the largest outflows from retail investors were CICT, FCT and CapitaLand Ascendas Reit .
Conversely, certain Reits managed to attract net buying from both institutional and retail investors.
On Apr 29, Stoneweg European Reit (Sert) announced that it successfully obtained unitholders' approval for the proposed stapling to form the Stoneweg European Stapled Trust – comprising Sert and Stoneweg European Business Trust. The proposed stapling is aimed at allowing the trust to maintain a competitive edge by offering enhanced tax efficiency, flexibility for future operations and broader scope for future investments.
The trust's strategy, mandate and asset class focus remain unchanged. However, the business trust can undertake development projects, but with no intention to increase development exposure to above 10 per cent on a long-term basis. The trust remains committed to maintaining a 35 to 40 per cent medium-term aggregate leverage target, with a ceiling of 45 per cent. SGX RESEARCH
The writer is a research analyst at SGX. For more research and information on Singapore's Reit sector, visit sgx.com/research-education/sectors for the S-Reits & Property Trusts Chartbook.