Why 2013 was a bad year for the S-REITs sector

A stark contrast to last year's performance.

According to Maybank Kim Eng, the S-REITs sector has been a laggard in 2013 (-7.8% price return YTD), underperforming the STI by 6.4%.

Here's more:

This is in stark contrast to its stellar performance in 2012 when the sector recorded a 41% price return and outperformed the STI by 20%.

S-REITs currently trade at FY13F yields of 6.5% and FY14F yields of 6.7%, below their historical average of 7.0%. While the yields may seem attractive, we think it is too early to revisit the sector given the impending QE taper.

The S-REITs sector has been a laggard in 2013 (-7.8% price return YTD), underperforming the STI by 6.4%. This is in stark contrast to its stellar performance in 2012 when the sector recorded a 41% price return and outperformed the STI by 20%.

S-REITs currently trade at FY13F yields of 6.5% and FY14F yields of 6.7%, below their historical average of 7.0%. While the yields may seem attractive, we think it is too early to revisit the sector given the impending QE taper.

 

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