- The FTSE ST All-Share Real Estate Investment Trusts Index (FSTREI) underperformed the broader Singapore market in 2024, and this trend has continued year-to-date, as at 14 Feb 2025.
Flat share price performance year-to-date amid elevated UST yields
- Recent consumer price index (CPI) data in the US has come in hotter than market expectations, and our house view is for only one 25bps rate cut by the Federal Reserve (Fed) this year. This will bring the fed funds rate to 4.00-4.25% and we believe the 10-year US Treasury (UST) yield may hit 5%.
- - Read this at SGinvestors.io -
4Q24 results review: Another quarter of DPU downtrend although this was largely expected
- - Read this at SGinvestors.io -
- The average and median DPU changes came in at -1.9% and -0.7% y-o-y respectively. However, this was largely expected as nine out of 16 of the S-REITs delivered results which were in-line with our expectations, four came in above/slightly above and only three missed/missed slightly.
- Following this latest set of results, we have adjusted our DPU forecasts by -1.9% for FY1 (current financial year) and -2.9% for FY2 (next financial year) on average, and by -0.5% for FY1 and -0.4% for FY2 on a median basis.
- After these revisions, we now expect S-REITs under our coverage to register flat DPU growth on average for FY1, which is lower than our previous expectations for positive growth.
Pushback in DPU recovery expectations as another round of cuts in forecasts happened
- Read more at SGinvestors.io.
