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Singapore bourse to launch REIT futures tracking Asian markets

Singapore business district
By Hui Ching-hoo   
August 6, 2020

Singapore Exchange (SGX) is launching two real estate investment trust (REIT) futures contracts, the first in Asia tracking property trusts listed in Singapore, Hong Kong, Malaysia and Thailand.

The contracts, which will begin trading on August 24, are aimed at meeting investor demand for exposure to the liquid Asia ex-Japan REIT market, SGX says in a statement on August 4.

“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 Stock Futures in June this year,” the bourse says.

According to the statement, an estimated US$340 billion of assets under management are actively benchmarked against or passively track the FTSE EPRA Nareit Global Real Estate Index series, while the iEdge S-REIT Leaders Index is designed to measure performance of the most liquid property trusts in Singapore.

There are now 44 REITs listed on the SGX with total market capitalisation of S$98 billion ($71.4 billion).