Faced with a daunting combination of rising interest rates and declining growth in 2022, investors saw shake-ups in portfolios across all sectors. The Singapore real estate sector, too, was not spared. But in a year awash with red, S-REITS managed to outperform its global counterparts, marking it as a standout.
While the general trend for 2023 is expected to be one of recovery and growth, lingering macroeconomic uncertainties mean investors should adopt a stance of cautious optimism. It is worthwhile looking at some of the best-performing S-REITs last year to see how they could lead the charge in 2023.Total distribution: 12 per cent increase year-on-year
Other favourable developments include Singapore’s continued ability to attract overseas investment; in 2021, fixed asset investments hit $11.8 billion, exceeding the $10 billion target set by the Economic Development Board for the year. Positive results were also reported among the trust’s other holdings, although improvements were generally moderate. RevPAR in Q3 2022 increased in Australia , Maldives , Japan and U.K. .So far, Singapore’s post-pandemic recovery has been stronger than expected, and CDL HTrust is well-positioned to benefit from the uptrend.
It is also among the most well-diversified REITs out there, with no single tenant contributing more than 5.1per cent of total gross revenue.