- Cohort of S-REITs in iEdge Next50 Index offer close to 2.5x the growth profiles vs large caps; with more meaningful uplifts from steady operational outlook and conducive interest rates environment
Ripe ingredients to surprise.
- - Read this at SGinvestors.io -
- Beyond the headline index gains, the programme has helped refocus investor attention on under-owned segments of the market, particularly mid-cap names with defensible fundamentals and attractive income profiles. In tandem, SGX’s introduction of the iEdge Next50 Index, which spotlights the next 50 largest listed companies by market capitalisation, provides a useful framework for investors seeking exposure beyond the traditional large-cap universe.
Mid-cap S-REITs emerging as a fertile hunting ground for alpha.
- - Read this at SGinvestors.io -
- Importantly, this is not a purely yield story. On average, these S-REITs are expected to deliver a 2-year earnings and DPU growth CAGR of ~4.2%, with a wide dispersion ranging from marginal contraction to double-digit growth, creating scope for differentiated total return outcomes.
We see scope for alpha generation through selective stock picking within this cohort.
- Read more at SGinvestors.io.
