Seeking a 7.7% yield? Multiple S-Reits record positive rental reversions

To the Moo joined discussion · Mar 30, 2023 16:51

For the first 12 weeks of 2023 the iEdge S-REIT Index generated a 3% total return. Within the S-REIT Sector, Industrial S-REITs averaged the highest median total returns over the past 12 weeks at 4%.

The recent earnings season saw Industrial S-REITs record positive rental reversions. Multiple Industrial S-REITs have employed further cost-saving measures such as hedging borrowings to fixed rates, as well as initiatives to reduce overall utility consumption.

Among them, $Mapletree Log Tr (M44U.SG)$, $Mapletree Ind Tr (ME8U.SG)$ and $AIMS APAC Reit (O5RU.SG)$ have the highest returns of 2023 industrial Reits, with year-to-date returns of 7.7%, 6.9% and 6.8%, respectively.

Seeking a 7.7% yield? Multiple S-Reits record positive rental reversions

$Mapletree Ind Tr (ME8U.SG)$ was the only S-Reit which garnered both net institutional and net retail inflows during the period.

$Mapletree Log Tr (M44U.SG)$ latest Q3 FY22/23 gross revenue rose by 8% yoy to S$180.2 million, mainly due to accretive acquisitions completed in Q1 FY22/23 and FY21/22. This resulted in a 7.3% yoy increase in net property income (NPI).

It achieved positive rental reversion in Q3 FY22/23 of 2.9%, with positive rental reversions registered in most markets across MLT’s portfolio.

$AIMS APAC Reit (O5RU.SG)$ 's gross revenue and NPI increased 14.1% and 14.0% yoy respectively in Q3 FY23. AAReit noted positive rental reversion for the quarter at 21.2%, contributed mainly from the logistics and warehouse segment which represented 81.6% of leases renewed.

$Mapletree Ind Tr (ME8U.SG)$ reported that gross revenue and NPI for Q3 FY22/23 rose 5.0% and 4.9% yoy to S$170.4 million and S$128.8 million respectively, mainly driven by the contributions from new leases across various clusters in its Singapore portfolio.

Among the 40 REITs listed on SGX, 10 REITs 2023Q1 returned more than 6%, among which $Keppel DC Reit (AJBU.SG)$ 2023Q1 returned 16.4%, $Frasers L&C Tr (BUOU.SG)$ returned 12.1% and $UtdHampshReitUSD (ODBU.SG)$ returned 11.1%.