, Singapore

SGX to roll out two REIT futures

Both futures are designed to allow broad distribution to US and global institutional investors.

The Singapore Exchange (SGX) will launch the SGX FTSE EPRA Nareit Asia ex-Japan Index Futures and SGX iEdge S-REIT Leaders Index Futures on 24 August, a press release announced.

The FTSE EPRA Nareit Global Real Estate Index series is a global benchmark, with an estimated $466.42b (US$340b) of assets under management (AUM) actively benchmarked or passively tracking the indices. Meanwhile, the iEdge S-REIT Leaders Index claims to be the most liquid index-basket representation of the Singapore REIT (SREIT) market and one of the most widely referenced in SGX’s suite of indices.

Both futures are designed in accordance with Commodity Futures Trading Commission guidelines, which would allow broad distribution to US and global institutional investors.

The listing of the SGX FTSE EPRA Nareit Asia ex-Japan Index Futures and the SGX iEdge S-REIT Leaders Index Futures builds on the forte of the Singapore stock market, following the launch of Singapore Single Stock Futures in June this year.

Singapore is currently the largest REIT market in Asia ex-Japan, comprising 44 REITs and property trusts with a combined market capitalisation of $98b. The market capitalisation of SREITs and property trusts has grown at a compounded annual growth rate of 15% in the last 10 years. Compared to other asset classes, they offer one of the highest dividend yields and lower volatility, with an average dividend yield of 7.1%. 

Join Singapore Business Review community
Join Singapore Business Review community
A NOTE FROM SINGAPORE BUSINESS REVIEW

Reaching the people who run Asia's businesses is harder than it used to be.

Inboxes are crowded. Attention is short. The executives you most want to reach — the founders, CFOs, and operators who actually move budgets — are the hardest to find through the usual channels. If you're building a company, a category, or a reputation, you already know this.

We've spent twenty years building the room they read. Singapore Business Review is where senior decision makers in Singapore and across Southeast Asia come for business coverage they can't get elsewhere — in print, online, and in person at the summits and roundtables we host across seven markets.

If you have something these readers should know about — a point of view worth publishing, a product worth their attention, an event worth their time — we'd like to hear what you're trying to do.