Singapore (10 October 2018) – If you are keen to invest in Shariah-compliant Real Estate Investment Trusts (REITs) on SGX but find it an onerous process to identify the right ones, fret no longer.
The launch of the first index tracking Shariah-compliant companies on SGX, has made identifying these REITs a breeze.
The Index launched last week, with 48 constituents, included nine REITs:
- Mapletree Industrial Trust [ME8U]
- Keppel DC REIT [AJBU]
- Starhill Global REIT [P40U]
- Manulife US Real Estate Investment Trust [BTOU]
- AIMS AMP Capital Industrial REIT [O5RU]
- ESR-REIT [J91U]
- Keppel-KBS US REIT [CM0U]
- EC World Real Estate Investment Trust [BWCU]
- Sabana Shari’ah Compliant REIT [M1GU]
The constituents of the FTSE ST Singapore Index had to go through a two-stage screening process according to Yasaar Ltd.’s screening methology. The first is a screening of its business sector, followed by a financial screening. A constituent complies with the Shariah if its financial ratios meet the following criteria:
- Debt to total assets must be less than 33.333%
- Cash and interest-bearing items are less than 33.333% of total assets
- Accounts receivables and cash must be less than 50% of total assets
- Total interest and non-compliant activities income should not exceed 5% of total revenue. – www.halaluniverse.net-/-
