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Retail investors post S-REITS net buy of $557.3m in September to November

The sector has emerged as one of the top four sectors for net institutional inflows.

Singapore-listed real estate investment trusts (S-REITs) ended November 2024 with -4.8% in total returns, where retail investors net bought $557.3m of S-REITS between September to November 2024, according to the Singapore Exchange Group (SGX).

S-REITs have remained active in portfolio management as managers continue to optimise assets and capture growth opportunities. As of 15 November 2024, S-REITs announced 10 transactions for the quarter to date, comprising five acquisitions and five divestments.

S-REITs with hospitality assets reported relatively stable operating performance during the third quarter of 2024, even as tourism activity normalised after the post-pandemic travel boom. According to SGX, revenue per available room for most trusts remained steady, despite being compared to a high base from strong growth in the same period a year earlier.

Around three-quarters of REITs and property trusts in Singapore have confirmed release dates for their financial results or business updates for periods ended 30 September 2024. 

SGX noted that the S-REIT sector has emerged as one of the top four sectors for net institutional inflows since 30 June 2024, reflecting growing interest amongst investors.

Investor sentiment improved significantly over the third quarter of 2024, driven by optimism regarding the trajectory of interest rates. This contributed to a robust rally in S-REITs, with the sector achieving one of its best quarters on record, according to SGX.

The iEdge S-REIT Index surged 14.7% during the quarter, marking its strongest quarterly performance since its inception in 2010. All 31 index constituents recorded gains, with US office-focused S-REITs leading the charge.

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