Real estate investment trusts in Singapore with growing exposures overseas in places like China, Japan and Australia are bucking the trend of lower returns at home where the city-state’s market has been slowing. Known as S-Reits, the US$49 billion sector, Asia’s second-largest after Japan, fared poorly in 2013. Jitters about the end of the US Federal Reserve’s stimulus programme and a series of moves by the Singaporean government to cool the property market raised concerns the trusts would lose their appeal to yield-hungry investors.
FORTUNE Real Estate Investment Trust (Reit)’s shares rallied on Friday, after the trust posted a 15.3 per cent rise in first-quarter distribution per unit (DPU) the previous day. Fortune Reit opened at HK$6.25, and extended gains to trade around HK$6.49, up by more than 4 per cent, or 27 HK cents, by 10.06 am. On Thursday, Fortune Reit said its income available for distribution rose 26.5 per cent to HK$193.9 million, or 10.38 HK cents per unit, for the January-to-March period, thanks to new property and rental reversions. Net property income increased to HK$289.2 million as the retail property trust recognised income from Fortune Kingswood, which was acquired in October 2013.
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