In 2024, the Federal Reserve kicked off a series of interest rate cuts starting in September, reducing rates by a total of 100 basis points. However, even with this financial easing, the share prices of S-REITs have been struggling and many of them have dipped below their 2023 levels. Let’s take a closer look at how S-REITs have fared over the past year.
Overall Returns
Here, we’ve got a graph that highlights the overall returns, taking into account Business Trust – CapitaLand India Trust whose dividends are anchored to the ex-dividend date.
2024 has not been kind, as returns have slipped further, with less than half of the S-REITs posting gains. Alarmingly, five of these REITs saw losses over 20%. Here’s a detailed view:
Numbers at a Glance:
- Average Dividend: 5.72% (ex-dividend date)
- Average Capital Loss: 9.21%
- Average Total Return: -3.49%
- Median Dividend: 6%
- Median Capital Loss: 6.45%
- Median Total Return: -1.31%
Now, let’s see how the MCFK REITs, which include Mapletree, CapitaLand, Frasers, and Keppel, held up in 2024:
Taking a closer look:
- Average Dividend: 5.24%
- Average Capital Loss: 12.58%
- Average Total Return: -7.34%
- Median Dividend: 5.42%
- Median Capital Loss: 12.04%
- Median Total Return: -6.14%
Unfortunately, MCFK REITs are still trailing behind the overall averages, both in terms of average and median performance.
