Friday 19 July 2013

REIT Yield Statistics

Median REIT Yield Movement

This chart plots the movement of the historical median yields of all REITs and Business Trusts (BTs) as well as that of the short-term (3-month), medium-term (10-year) and long-term (30-year) Singapore Government Securities (SGS) benchmark bonds. The chart also plots the movement of share prices as represented by the Straits Times Index. This chart provides an indication of the current yields relative to historical yields.

Median REIT Yield Movement (Jun 13)

As the historical yields are derived figures, please take note of the following points:
  • Median yield. To prevent any outlier individual REIT/ BT yield from distorting the overall yield, the median yield of all REITs/ BTs is used.
  • Small no. of REITs/ BTs initially. The no. of REITs/ BTs initially is small. Hence, when a new REIT/ BT is added, it could cause a major change in the median yield. This issue still exists for yields categorised according to sectors.
  • Preceding Financial Year (FY) distribution is used. The distribution in the preceding FY is used to calculate the yield. It is not based on the rolling 12-month distribution and is only updated once a year, usually 1-2 months after the end of the FY.
  • First FY distribution is usually not used. The distribution for the first FY usually does not cover the full FY and is much lower than that for the subsequent full FYs. Hence, it is usually not included in the yield calculation, unless the distribution in the first FY is close to that of subsequent FYs. For this reason, the newly listed REITs/ BTs are usually not included until a year or more after listing.
  • No adjustment for corporate actions. The yield is not adjusted for any issues of new shares, rights issues or share consolidations. This explains the sharp spike in the yields between Mar 2008 and Mar 2010 during the Global Financial Crisis when a lot of REITs undertook major rights issues.
  • Turn-of-month price is used. The price used to calculate the yield every month is not based on the last trading day of the calendar. It is based on either the last Friday of the month or the first Friday of the following month, whichever is closer to the end of the month.

Cumulative Median REIT Yield Distribution

This chart plots the cumulative distribution of the historical median yields of most REIT/ BT sectors since Sep 2003. The historical yields of the Mixed and Residential sectors are not plotted as their historical yields extend beyond the range of the yields plotted. The triangles represent the current median yield of each REIT/ BT sector. When a triangle falls out of the chart, it means that the current yield is outside the range of the yields plotted. The figures in brackets in the legend represent the no. of REITs/ BTs used in the yield calculation for that sector. This chart provides an indication of the current yields relative to the historical yields for each sector.

Cumulative REIT Yield Distribution (Jun 13)

The list of REITs/ BTs in each sector is shown in the following table. The definition of whether a counter is a REIT or BT follows that of SGX (see SGX website -> Products -> REITs -> Investors' Corner). When a REIT/ BT is marked as "new", it means that the REIT/ BT does not have distribution for a full FY and therefore has not been included in the median yield calculation.

Counter Sector REIT/BT Remarks
First Reit Healthcare Reit
ParkwayLife Healthcare Reit
Religare Healthcare Trust New
AscendasHT Hotel Trust New
Ascott Hotel Reit
CDLHTrust Hotel Trust
FarEastHT Hotel Trust New
AimsAmp Industrial Reit
Ascendas Industrial Reit
AscendasInd Industrial Trust
Cache Industrial Reit
Cambridge Industrial Reit
MapletreeInd Industrial Reit
MapletreeLog Industrial Reit
Sabana Industrial Reit
AsianPayTV Infrastructure Trust New
CitySpring Infrastructure Trust
HPHTrust Infrastructure Trust
K-Green Infrastructure Trust
MIIF Infrastructure Trust
First Ship Leasing Trust
Global Inv Leasing Trust
Rickmers Leasing Trust
MacCookProp Mixed Trust
MapletreeGCC Mixed Reit New
CapitaComm Office Reit
Forterra Office Trust
FrasersComm Office Reit
Indiabulls Office Trust
K-Reit Office Reit
Suntec Office Reit
Saizen Residential Reit
CapitaMall Retail Reit
CapitaRChina Retail Reit
Croesus Retail Trust New
Fortune Retail Reit
FrasersCT Retail Reit
LippoMalls Retail Reit
MapletreeComm Retail Reit
Perennial Retail Trust
Starhill Retail Reit

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