Book value discount for S-REITs narrows amid global interest rate outlook
The FTSE Straits Times REIT Index has seen its total return fall by10%this year, while the FTSE EPRA Nareit Developed Countries Index (the global REITs benchmark) has fallen by22%, as global inflation outstrips global growth by 5% in 2022.
The FTSE Straits Times REIT Index was trading at a discount of7%to book value, up from a 16% discount a month earlier (Data as of Nov 18).
The FTSE Straits Times REIT Index recorded a total return of12.0%in the past month amidst a slight slowdown in hawkish interest rate hikes expected in the US.