Separately, Corporate Monitor has extensively researched S-REITs’ capital raisings, including IPO proceeds, and compared them with their distributions over the years. According to the report titled “Return on capital or return of capital?”, Corporate Monitor found that only 10 S-REITs provided a return on capital (R-on-C), that is, they have distributed more money than they have taken in.
This year marks the 20th anniversary of six S-REITs and property trusts (see Table 1). The table shows how the REITs have fared based on Bloomberg’s total return analysis (TRA) since their IPOs. Over the past 20 years and more, S-REITs have weathered Sars, the global financial crisis, the European debt crisis, Covid, inflation, the Ukraine War, Liberation Day, and the Iran War.
Over more than two decades, many S-REITs have inevitably encountered challenges, causing a handful to float above the rest in terms of total shareholder returns. These stronger REITs are on the radar of Jefferies’ REIT initiation report titled “Return to Growth”.
