DESPITE expectations of a rebound from deeply discounted valuations, market watchers were surprised by the sharp rally in Singapore-listed US office real estate investment trusts (Reits) in the final quarter of 2023.

These analysts are warning, however, of continued volatility in the sector as investors’ expectations adjust.

The trio of US office Reits listed in Singapore – Manulife US Reit (MUST), Prime US Reit, and Keppel Pacific Oak US Reit (Kore) – suffered steep declines through most of the year, and were the worst performers in the benchmark iEdge S-Reit Index in 2023.