Institutional fund flows have also painted “a bleak picture” for S-REITs, say OCBC’s analysts. Data from the Singapore Exchange (SGX:S68
) showed that institutional investors net sold $1.59 billion of S-REITs in 2024. This outflow continued in 2025, with net sales amounting to $312 million from institutional investors year to date till Feb 7.
Growth remains elusive among S-REITs, says OCBC Investment Research in a Feb 17 note. 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.
Recent consumer price index (CPI) data in the US has come in hotter than market expectations, and OCBC’s house view is for only one 25-basis point (bp) rate cut by the US Federal Reserve this year. This will bring the fed funds rate to 4%-4.25% and the 10Y US Treasury yield may hit 5%.
