SGX Market Updates

SGX’s 5 Best-Performing Retail REITs Returned 32% in 2019 YTD


PUBLISHED ON |

09 July 2019

  • SGX lists 34 REITs, seven stapled trusts and three property trusts with a combined market cap of more than S$100 billion. S-REITs was the top net buy sector in January-June 2019, drawing net institutional inflows of S$396.3 million.

  • Among SGX’s 44 trusts, 11 are engaged in the development, ownership, leasing, management and operation of shopping malls located in Singapore, Malaysia, Indonesia, Mainland China, Hong Kong, Japan and Australia. These 11 retail REITs have a combined market cap of more than S$30 billion.

  • Among the 11 retail REITs, the 5 best performers in the 2019 YTD were: Lippo Malls Indonesia Retail Trust (+37.2%), Mapletree North Asia Commercial Trust (+32.0%), Sasseur REIT (+31.7%), Frasers Centrepoint Trust (+30.3%) and Fortune REIT (+26.2%). They have averaged a total return of +31.5% in YTD.




SGX lists 34 REITs, seven stapled trusts and three property trusts with a combined market capitalisation of more than S$100 billion. S-REITs was the top net buy sector in January-June 2019, drawing net institutional inflows of S$396.3 million.

Among SGX’s 44 trusts, 11 are engaged in the development, ownership, leasing, management and operation of shopping malls located in Singapore, Malaysia, Indonesia, Mainland China, Hong Kong, Japan and Australia. These 11 retail REITs have a combined market cap of more than S$30 billion.

Note that Mapletree North Asia Commercial Trust’s retail assets also include office segments, and the trust derived 54% of its gross revenue, and 55% of its net property income, in the FY18/19 financial period from retail operations.

Among the 11 retail REITs, the 5 best performers in the 2019 YTD were: Lippo Malls Indonesia Retail Trust (+37.2%), Mapletree North Asia Commercial Trust (+32.0%), Sasseur REIT (+31.7%), Frasers Centrepoint Trust (+30.3%) and Fortune REIT (+26.2%). The 5 have averaged a YTD total return of +31.5%, bringing their one-year and three-year total returns to +19.2% and +25.4% respectively.

Note that Fortune REIT, which is dual-listed on Hong Kong Exchange, last month announced plans to delist from SGX.

The tables below detail the 11 retail REITs listed on SGX, sorted by YTD total return.

Name SGX
Code
Market
Cap
S$m
Total
Return
YTD
%
Total
Return
1 Yr
%
Total
Return
3 Yr
%
LIPPO MALLS INDONESIA RETAIL TRUST D5IU 695 37.2 -18.6 -11.9
MAPLETREE NORTH ASIA COMMERCIAL TRUST ^ RW0U 4,645 32.0 34.4 74.1
SASSEUR REIT CRPU 953 31.7 22.3 NA
FRASERS CENTREPOINT TRUST J69U 3,040 30.3 32.0 54.5
FORTUNE REIT * F25U 3,696 26.2 25.8 10.3
CAPITALAND MALL TRUST C38U 10,106 23.5 40.8 48.3
CAPITALAND RETAIL CHINA TRUST AU8U 1,598 21.6 15.9 28.6
STARHILL GLOBAL REIT P40U 1,712 19.0 28.6 19.3
SPH REIT SK6U 2,819 11.9 16.3 36.8
DASIN RETAIL TRUST CEDU 496 6.6 11.1 NA
BHG RETAIL REIT BMGU 354 1.3 3.0 16.2
Average 21.9 19.2 25.1

Source: Bloomberg & StockFacts (data as of 5 July 2019)
* Fortune REIT, dual-listed on HKEx, plans to delist from SGX
^ Mapletree North Asia Commercial Trust’s retail assets also include office properties



Name SGX
Code
12M Div
Ind Yld
(%)
P/B
(x)
Geographic Breakdown by Portfolio Value
LIPPO MALLS INDONESIA RETAIL TRUST D5IU 8.0 1.0 100% Indonesia
MAPLETREE NORTH ASIA COMMERCIAL TRUST RW0U 5.2 0.8 64% Hong Kong, 25% China, 11% Japan
SASSEUR REIT CRPU 8.3 0.9 100% China
FRASERS CENTREPOINT TRUST J69U 4.1 1.1 100% Singapore
FORTUNE REIT F25U 4.7 0.7 100% Hong Kong
CAPITALAND MALL TRUST C38U 4.3 1.1 100% Singapore
CAPITALAND RETAIL CHINA TRUST AU8U 6.5 1.0 100% China
STARHILL GLOBAL REIT P40U 5.7 0.8 69.5% Singapore, 16.2% Australia, 11.6% Malaysia, 2.7% China & Japan
SPH REIT SK6U 5.1 1.1 100% Singapore~
DASIN RETAIL TRUST CEDU 8.3 0.6 100% China
BHG RETAIL REIT BMGU 7.4 0.9 100% China
Average 6.1 0.9  

Source: Bloomberg & StockFacts (data as of 5 July 2019)
~ Revenue breakdown by geography doesn't include Australian property acquired on 21 Dec 2018



REIT-Owned Malls Seen Outperforming Amidst Challenging Market Conditions

In its report dated 17 April 2019, Maybank Kim Eng Research noted that it expects REIT-owned malls to outperform the broader retail market in Singapore, with leasing demand supported by F&B offerings and activity-based tenants. See report: Singapore Market Monitor - Foggy With A Hint of Sunsine.

Tourism receipts have declined amidst sluggish growth in visitor arrivals. According to data from Singapore Tourism Board, the city-state’s May international visitor arrivals edged 0.9% higher YoY to 1.5 million. Domestic consumer sentiment also remains cautious amidst persistent US-Sino trade tensions. Singapore’s April retail sales declined 1.8% YoY for the third month in a row, extending March’s 1% fall. Excluding motor vehicles, retail sales fell 2% YoY, data from the Department of Statistics showed.

The report added that larger destination malls such as Causeway Point – owned by Frasers Centrepoint Trust – will perform better with shopper traffic and tenant sales growth.

In a report dated 3 July 2019, CGS-CIMB Research noted that shopping malls owned by REITs continue to enjoy high occupancy on the back of active tenant and footfall management. See report: REIT - In Search Of Yield.

For calendar year 2Q 2019, retail REITs are expected to continue to deliver higher YoY distribution per unit (DPU) levels due to contributions from acquisitions made earlier, such as CapitaLand Mall Trust’s purchase of 70% of Westgate and SPH REIT’s acquisition of The Rail Mall in Singapore and Figtree Grove in Australia, the report added.







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