SINGAPORE (Sept 20): Singapore’s 31 real estate investment trusts (REITs) and six stapled trusts have averaged a total return of 18.6% in the year to date, according to Singapore Exchange (SGX).

The SGX S-REIT 20 Index – an index of 20 of the largest and most tradeable REITs in Singapore – has performed even better on average, gaining 20.4% so far this year.

In comparison, the benchmark Straits Times Index has climbed 12.0%.

Sabana Shariah Compliant Industrial REIT leads the gainers with a total return of 34.1% year-to-date, followed by CDL Hospitality Trusts at 32.4% and Viva Industrial Trust at 31.7%.

On the other end of the spectrum is Fortune REIT, with a total return of 5.0%.

According to SGX, the sector has an average gearing ratio of 34.6%, below the current gearing ratio limit of 45% for Singapore REITs.

This is also lower than the gearing ratio of 42.4% for the MSCI World REIT Index.

In addition to the total of 37 REITs and stapled trusts, SGX also currently lists two REIT Exchange Traded Funds (ETFs): the Phillip SGX APAC Dividend Leaders REIT ETF and NikkoAM-StraitsTrading Asia ex Japan REIT ETF.

Both of these track indices focused on REITs based in the Asia Pacific region.