Reit ETFs see 40% AUM growth in past year as S-Reits regain appeal
The combined assets under management (AUM) of these ETFs have surged by 40 per cent over a year, reaching an all-time high of S$1.2 billion by the end of the first half of 2025.
This growth in AUM has outpaced the Reit sector's price movements, as reflected by the iEdge S-Reit Index and FTSE EPRA Nareit Index which reported total returns of 10.5 per cent and 12.5 per cent respectively. Both retail and institutional investors have actively contributed to the growth of AUM for Reit ETFs in Singapore.
On average, the five Reit ETFs have posted total returns of 10.7 per cent over the past year ended Jun 30, 2025. Trading activity for these Reit ETFs also surged by 34 per cent quarter on quarter for the April to June 2025 period.
Among the top 10 traded ETFs listed in Singapore, the Lion-Phillip S-Reit ETF and the NikkoAM-StraitsTrading Asia ex Japan Reit ETF stood out, recording the highest net inflows.
The Lion-Phillip S-Reit ETF, Singapore's first and largest ETF focusing on S-Reits, tracks the Morningstar Singapore Reit Yield Focus Index, which includes 21 constituents and boasts an AUM of more than S$540 million. As one of the two pure-play Singapore Reit ETFs, it offers a dividend yield of 5.8 per cent and achieved total returns of 4.1 per cent in the first half of 2025.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Sign Up
Sign Up
The NikkoAM-StraitsTrading Asia ex Japan Reit ETF tracks the FTSE EPRA Nareit Asia ex Japan Net Total Return Reit Index, consisting of 43 constituents across Singapore, Malaysia, Hong Kong, India, South Korea, Thailand and the Philippines.
Singapore remains the largest exposure at 68 per cent of the portfolio. Notably, this ETF distributes quarterly dividends, unlike the others which distribute semi-annually. It ranks as the second-largest Reit ETF by AUM, with over S$420 million, yielding 5.8 per cent in dividends and generating total returns of 6.0 per cent in the first half of 2025.
In terms of returns, the UOB Asia-Pacific Green Reit ETF was the best-performing Reit ETF for the first half of 2025, returning 9.3 per cent in total returns. The underlying index, the iEdge-UOB Apac Yield Focus Green Reit Index, emphasises environmental factors such as energy consumption, water consumption, GHG emissions and green building certifications.
The index has 50 Reits across Australia (42 per cent), Japan (32 per cent), Singapore (19 per cent), and Hong Kong (7 per cent). The UOB Apac Green Reit ETF presents an option for investors seeking sustainable investments while maintaining highly competitive dividend yields.
The CSOP iEdge S-Reit Leaders ETF has the highest dividend yield among the five Reit ETFs at 6 per cent. It tracks the iEdge S-Reit Leaders Index, which comprises 22 S-Reits.
Phillip Securities research analyst Helena Wang recently initiated coverage on the Phillip SGX Apac Dividend Leaders Reit ETF for its exposure to 31 Reits in the Asia-Pacific ex Japan region, and its consistent dividend growth.
The report highlighted that since 2021, dividends have remained steady between four and six Singapore cents per share.
The ETF's book value has also become more attractive, historically trading at 1.3 times the price-to-book ratio, and now at 0.8 times. The ETF tracks the iEdge Apac ex-Japan Dividend Leaders Reit Index, which selects Reits based on their dividend payout. 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.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Times
3 hours ago
- Business Times
Despite profit dip, Bursa Malaysia's IPO growth attracts Singapore firms' interest
[KUALA LUMPUR] Bursa Malaysia is emerging as a key listing venue for Singapore-based companies, even as the bourse operator reported a 19.3 per cent year-on-year (yoy) drop in net profit to RM125.5 million (S$37.8 million) for the first half of 2025. The exchange is seeing rising interest from Singapore companies seeking secondary or dual listings, buoyed by its strong performance in the Asean initial public offering (IPO) market. These developments come despite weaker overall trading volumes that have weighed on Bursa's financial performance. Fad'l Mohamed, chief executive officer of Bursa Malaysia, told a results briefing on Tuesday (Jul 29): 'We are seeing more interest from Singapore companies. One of them is UMS Integration , which will be listed on the main market... this Friday.' The high-precision engineering and manufacturing company is pursuing a secondary listing on Bursa Malaysia through an introductory route to broaden its investor base and boost stock liquidity. No new shares will be issued; instead, initial liquidity will be supported by a market-making arrangement involving shares borrowed from CEO Andy Luong. The listing's reference price will be pegged to UMS Integration's Jul 31 closing price on the Singapore Exchange, ahead of its debut on Bursa Malaysia on Aug 1. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up Meanwhile, Oiltek International and Q&M Dental Group – also Singapore-based companies – have proposed secondary listings on Bursa as well. Precision manufacturing and assembly solutions provider Grand Venture Technology was also pursuing a secondary listing on Bursa's main market but halted the plan in June , despite receiving approval from Securities Commission Malaysia approval months earlier. 'Bursa Malaysia continued to top other bourses in Asean in the first half of 2025 across three key metrics of IPOs: number of IPOs, total IPO market capitalisation, and total IPO funds raised,' noted Fad'l. The exchange hosted 32 IPOs in H1, raising RM4 billion and posting a total IPO market capitalisation of RM17.4 billion. This compares with 21 IPOs and RM2.2 billion raised during the same period in 2024. According to Deloitte, Bursa Malaysia captured over 67 per cent of the IPO proceeds in South-east Asia , which overall had 53 IPOs and raised more than US$1.4 billion in H1 2025. 'We have a healthy pipeline of IPOs in the coming months and are well on track to achieve our annual target of 60 IPOs and RM40.2 billion in total market capitalisation by end-2025,' Fad'l added. Profit squeeze from lower trading activity Despite the strong IPO pipeline, Bursa Malaysia's financial results were hit by a downturn in trading activity amid global market headwinds. H1 revenue fell 7.8 per cent to RM357 million, dragged by a 15.5 per cent drop in trading revenue to RM213 million. Second-quarter net profit fell 29 per cent yoy to RM57.1 million, while revenue declined 13.9 per cent to RM172.6 million. 'Global developments, including the United States' ongoing tariff negotiations with its trading partners and persistent geopolitical tensions, impacted market sentiment and weighed on equity markets,' Fad'l explained. Securities market trading revenue dropped nearly 24 per cent to RM146.4 million, with average daily trading value down 24.8 per cent at RM2.5 billion. Trading velocity also fell to 32 per cent from 42 per cent a year earlier. Nevertheless, Bursa Malaysia declared an interim dividend of 14 sen per share, translating to a total payout of RM113.3 million, or 90.3 per cent of net profit – offering a yield of 3.7 per cent. Optimism for second half Bursa Malaysia's financial results for H1 2025 were impacted by a downturn in trading activity. PHOTO: BT FILE Despite the current conditions, Fad'l remains optimistic, anticipating improved market sentiment in the coming quarters. 'Funds are currently sitting on cash, but we anticipate they will start deploying it, capitalising on forward-looking catalysts and expected growth opportunities in 2026,' he said. He noted that the second half of the year will be the prime time for fund managers to capture the upside of 2026. 'With this elevated cash being injected into the market, it's set to propel the average daily trading value.' Citing analysts' estimates, he believes that the average daily trading value will increase to RM2.6 billion in H2. Therefore, Bursa is maintaining its 2025 profit before tax target at the RM369 million to RM408 million range, a key performance indicator. Derivatives, Islamic and data segments show growth Bursa's derivatives market revenue rose 8.1 per cent to RM56.1 million in H1, supported by active trading in crude palm oil futures. The exchange also relaunched its Single Stock Futures contracts in March with new specifications to widen its investor base. Revenue from the Islamic capital market jumped 23 per cent year on year to RM11 million, while non-trading revenue – covering listing, issuer and depository services – increased by 7.6 per cent to RM130.5 million. Data business revenue grew 6.4 per cent to RM40.5 million, driven by expanding licensing subscriptions and rising demand for high-quality, actionable financial and sustainability data. As at Jun 30, Bursa Malaysia's total market capitalisation stood at RM1.9 trillion, down 6.1 per cent from a year earlier.
Independent Singapore
3 hours ago
- Independent Singapore
'Why do some Singaporeans feel more entitled than others?'
SINGAPORE: In the Lion City, where social policies intend to strike a sense of balance between fairness and practicality, few schemes have triggered as much discussion as the CDC coupons. These government-issued vouchers are aimed at easing the load of escalating living costs, yet an ostensibly modest gesture of assistance has kindled a bigger discussion about equality, privilege, and the public's perception of prosperity. Recently, a Redditor voiced curiosity about the mounting bitterness observed online. 'I am by no means a wealthy person,' the poster wrote, 'but I keep seeing comments about how it's unfair that someone living in a landed property gets the same vouchers as someone in an HDB flat. I genuinely want to understand—why do people feel entitled to more?' It's a question that opened the floodgates to a variety of outlooks and perceptions, demonstrating that the problem isn't just about dollars and cents—it's about ideals, insights, and messaging. The problem with equality in benefits A common response from commenters was the strain between fairness and equity. While the government gives the same amount of CDC vouchers to rich and poor citizens alike, the lived reality of Singaporeans extensively differs. As one commenter clarified, 'Should poor people get more monetary benefit from the government than rich people? That's a far more complex issue than 'poor people are entitled.'' See also Cost of living issues at the top of voters' minds in GE2025 runup Unquestionably, while some contend that equal dispersal mirrors national harmony, others feel the system should account for need. A S$300 voucher might hardly register for a high-income home, but for households earning the minimum wage, it could mean a week's worth of groceries. It's not just the money—it's the message A vital aspect, according to netizens, is how the government sets these vouchers. The official description is that the CDC vouchers are intended to 'alleviate the cost of living.' That kind of messaging, many claim, sets the belief that the more economically disadvantaged one is, the more help one should receive. 'If it was, say, a tax rebate,' one Redditor pointed out, 'the rich get more and no one complains, because it's seen as a discount on taxes—something they already pay more of. But when vouchers are positioned as support, people feel it should be given based on need, not equality.' Another added, 'If the message was simply, 'we're returning a budget surplus to all citizens,' I don't think people would be as upset.' What do people really want? Underneath the discussion, there's a sense that the real issue isn't just about coupons—it's about acknowledgment and reprieve. Lower-income people often feel the pinch of mounting expenditures more intensely and want that hardship addressed in concrete ways. 'The vouchers can cover a month's worth of basic expenses for some families,' one netizen wrote. 'So, when others use it to buy luxuries, it feels like a slap in the face.' However, it's not only the 'have-nots' who are disgruntled. As one noted, even high-income earners sometimes complain they're being deceitfully overtaxed or that the system doesn't reward them sufficiently, even though many of them have benefited from scholarships or overseas funding in the past. 'There will always be people unhappy,' one Redditor wisecracked. 'They lack contentment—so it's not just the lower income.' Gratitude vs entitlement The most surprising insight came from a commenter who thought that gratitude has become increasingly rare across all income brackets. 'People will never be grateful for what's being given,' he said. 'It doesn't matter if they're high-income or low-income.' It's a sceptic's mindset, but it can lead to a deeper challenge for legislators — even benevolent initiatives can provoke hatred if the public sees them as skewed from actual realities and societal values. A question of perspective Eventually, the poster wasn't aiming to attack or protect any side but was trying to understand why ' people feel entitled to more.' Yes, all Singaporeans work hard, but hardship is not always gauged in hours—it's gauged in values and outcomes. When someone living paycheck to paycheck gets the same aid as someone with financial resources, the result can feel more like nominal equality than real equity. And that's the actual core of the debate — not who deserves what, but how we describe fair-mindedness in a society that strives for both meritocracy and sympathy.
Business Times
3 hours ago
- Business Times
How to maximise investment returns
[SINGAPORE] The Straits Times Index has been on a winning streak over the past month. As at Jul 24, the benchmark blue-chip index has enjoyed a 14-day streak of unbroken increases, sending the index past its all-time high. For those who invested early, this rally has likely translated into solid capital gains. But the extent of your profits will depend on how your investments are allocated. If a significant portion of your portfolio is parked in stocks and other growth-oriented assets, you're likely to have seen strong returns. On the other hand, having too much cash on the sidelines could have meant missed opportunities. Here's why your asset allocation matters – and how you can make the most of future rallies. Asset allocation determines returns Your portfolio's returns are closely tied to how much of it is invested, versus how much you keep as cash. Let's break this down with a simple comparison. Imagine three investors, each starting with S$100,000. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Investor A invests S$90,000 into an exchange-traded fund (ETF) tracking the STI, and keeps S$10,000 in cash. Investor B invests half (S$50,000) in the ETF, and the other half in cash. Investor C is more conservative, allocating just S$20,000 to the ETF and S$80,000 in cash. Between Apr 9 and Jul 24, the STI surged 25.9 per cent, rebounding strongly from earlier declines due to Trump's tariff announcements. Now, let's assume all three investors stayed invested during this entire period. Despite holding the same ETF, their results would differ significantly due to their asset allocation. Since cash typically earns a negligible 0.05 per cent in annual interest, we'll assume it contributes almost nothing to returns. Here's how the numbers play out: Investor A (90 per cent invested) earns a 23.3 per cent return. Investor B (50 per cent invested) sees a 13 per cent return. Investor C (20 per cent invested) ends up with just 5.2 per cent. This simple example clearly shows how being more fully invested during a market rally can significantly boost your capital gains. Even modestly allocating idle cash can improve outcomes. For instance, if Investor B had placed S$40,000 of his cash into corporate bonds yielding 3 per cent, his overall return would rise to 14.2 per cent, instead of 13 per cent. The bottom line is that being 90 per cent invested can deliver dramatically better returns than staying mostly in cash. Your asset allocation matters – and staying invested is key to capturing upside when markets rally. Pick the right stocks to improve returns Of course, the previous example assumes the investors only held the STI ETF in their portfolios. But how about individual stocks? Take Singapore Technologies Engineering (STE), for example. From Apr 9 to Jul 24 this year, STE's share price surged 40.6 per cent, far outpacing the STI's 25.9 per cent gain over the same period. Good returns are not restricted to blue-chip stocks. Smaller companies can sometimes deliver even more impressive results. One standout is Food Empire, a maker of three-in-one coffee. Its shares nearly doubled during the same timeframe, jumping from S$1.12 to S$2.41. So, if your portfolio included high-performing stocks like STE or Food Empire, your overall returns could have been significantly higher than if you had only invested in the STI ETF. Waiting for the crash Meanwhile, some investors may feel the urge to cash out during a rally, hoping to lock in profits before a potential crash. They plan to sell high now and buy back later when the market drops. It sounds like a smart move on paper – but in practice, it's much harder to pull off. The truth is, you could be waiting a long time for that crash. Bull markets tend to last much longer than bear markets. In fact, according to data from Bespoke Investment Group, the average S&P 500 bull market lasts 1,011 days, while the average bear market lasts only 286 days. That means bull markets typically run about three times longer than bear markets. So, if you're sitting on the sidelines in cash, waiting for the next downturn, you could end up missing out on years of strong gains. That's why it often makes more sense to stay invested, especially if the companies you own continue to deliver healthy growth. While there will be periods when there will be downturns, in the long run, time in the market beats trying to time the market. Don't forget dividends Staying out of the market doesn't just mean missing potential capital gains as share prices climb. It also means forgoing valuable dividend income while you wait on the sidelines. STE is a great example of why that matters. Over the past decade, STE's share price rose 166.1 per cent, climbing from S$3.32 to S$8.86. But that's only part of the story. During the same period, STE also paid out S$1.48 in dividends per share. When you include those dividends, your total return jumps to 210.5 per cent, a significant boost. In terms of annualised performance, STE delivered a 10.3 per cent compound annual growth rate (CAGR) based on share price alone. Add in dividends, and the CAGR rises to 12 per cent. This clearly illustrates how dividends play a powerful role in enhancing your long-term investment returns – not just as a bonus, but also as a meaningful contributor to wealth growth. The importance of keeping some cash Some investors believe it's best to be 100 per cent invested at all times to maximise returns, rather than letting any cash sit idle. But that approach has its drawbacks. First, a fully invested portfolio can experience sharp swings during periods of market volatility. Watching your entire portfolio fluctuate wildly isn't easy; it can lead to emotional, knee-jerk decisions. Second, having some cash on hand gives you the flexibility to act quickly when unexpected opportunities arise, especially during a sudden market downturn. If you're already fully invested when markets crash, you'll be forced to sell other stocks, likely at a loss, just to free up cash. That means selling at exactly the wrong time, when prices are falling. For these reasons, it's wise to keep a portion of your portfolio in cash. This gives you the stability to ride out market volatility and the firepower to seize opportunities when they appear. Get smart: Smart portfolio management is key The secret to building attractive long-term returns may sound simple, but it's incredibly effective. Invest the bulk of your portfolio in strong, growing companies, and hold them for the long haul. Not only will you benefit from capital appreciation over time, you'll also enjoy rising dividends that enhance your total returns. At the same time, it's wise to keep some cash on hand. This gives you the flexibility to scoop up great bargains if the market suddenly takes a dip. In short, smart portfolio management – balancing long-term investments with cash for opportunity – is the foundation for lasting success. Stick to these timeless principles, and you'll be well on your way to achieving investment results you can truly be proud of. The writer does not own shares in any of the companies mentioned. He is portfolio manager of The Smart Investor, a website that aims to help people invest smartly by providing investor education, stock commentary and market coverage
