Yesterday the iEdge S-REIT Index booked its strongest gain since Sept 4, with US REITs seeing their eighth strongest session of the year. This followed Fed Chair Powell stating the current levels of US interest rates were also appropriate in returning US inflation to the 2% objective.
The iEdge S-REIT Index had previously seen a comparatively muted quarter, consolidating its 25.9% gains made for the year through to the end of Sept. The 1.0% gain by the iEdge S-REIT Index on Tuesday, took its year-to-date total return to 27.1%.
S-REITs have continued to tap secondary markets to fund acquisitions this quarter – with new units issued by Mapletree Commercial Trust, Keppel Pacific Oak US REIT, Mapletree Logistics Trust, ESR REIT, Keppel DC REIT and Manulife US REIT.
On Tuesday, the iEdge S-REIT index booked its strongest gain since Sept 4. Ascendas REIT lodged its strongest price performance since Jan 4, and Keppel REIT saw its strongest price performance since Dec 18, 2018. REITs also accounted for more than one-third of the record turnover yesterday - which saw Singapore’s strongest day of stock market turnover since May 31, 2018. Mapletree Commercial Trust was the most traded stock for the day due to Index rebalancing activity in the closing auction.
SREITs & US REITs Rallied on Fed Speech
Prior to the session, Fed Chair Jerome Powell spoke overnight at the Annual Meeting of the Greater Providence Chamber of Commerce, highlighting that not only is Fed monetary policy well positioned to support a growth, but to return inflation decisively to the symmetric 2% objective.
Previously, the case for the past three rate cuts had been mounted on the current slowdown in international growth (& trade-related uncertainties ) hurting US exports, presenting a risk for broader weakness within the US. While the export impact was reiterated, the emphasis on rates being at appropriate levels for inflation was somewhat of an additional perspective (click here for more).
REITs in the US reacted similarly last night, booking their strongest gains since Oct 1, which was their eighth strongest session for the 2019 year. Consensus expectations are that the US Federal Reserve will hold interest rates at current levels when it next meets on Dec 11.
As tabled below, the currently listed 35 REITs and six stapled trusts have generated an average total return of 22% in the 2019 year-to-date. The 5 strongest performers over the period were Keppel DC REIT, Mapletree Commercial Trust, Ascendas Hospitality Trust, Sasseur REIT and Lippo Malls Indonesia Retail Trust.
Sasseur REIT has been the strongest performing REIT in both the November month-to-date and December quarter-to-date. Sasseur REIT manages retail outlet malls in China and recorded a distributable income of S$19.6 million for the its 3QFY19 (ended Sep 30) which was up 7.6% YoY, for more details click here.
| REITs & Stapled Trusts Ranked by Highest Trading Turnover in 2019 YTD | Code | Mkt Cap S$M |
Total Return MTD % |
Total Return QTD % |
Price Change YTD % |
Total Return YTD % |
|---|---|---|---|---|---|---|
| ASCENDAS REAL ESTATE INV TRT | A17U | 9,425 | -2% | 0% | 18% | 25% |
| CAPITALAND COMMERCIAL TRUST | C61U | 7,638 | -3% | -4% | 13% | 19% |
| CAPITALAND MALL TRUST | C38U | 9,185 | -2% | -4% | 10% | 15% |
| MAPLETREE COMMERCIAL TRUST | N2IU | 7,535 | 4% | 8% | 48% | 55% |
| MAPLETREE LOGISTICS TRUST | M44U | 6,379 | 0% | 5% | 33% | 41% |
| SUNTEC REIT | T82U | 5,182 | -1% | -1% | 4% | 9% |
| MAPLETREE NORTH ASIA COMMERCIAL | RW0U | 3,705 | -8% | -11% | 2% | 8% |
| MAPLETREE INDUSTRIAL TRUST | ME8U | 5,590 | 0% | 5% | 33% | 41% |
| KEPPEL DC REIT | AJBU | 3,324 | 2% | 7% | 54% | 63% |
| FRASERS LOGISTICS & INDUSTRIAL | BUOU | 2,801 | -1% | 1% | 20% | 28% |
| KEPPEL REIT | K71U | 4,193 | 2% | 0% | 9% | 14% |
| FRASERS CENTREPOINT TRUST | J69U | 3,062 | 0% | 1% | 26% | 33% |
| ASCOTT RESIDENCE TRUST | A68U | 2,985 | -1% | 4% | 27% | 35% |
| FRASERS COMMERCIAL TRUST | ND8U | 1,506 | 1% | 4% | 20% | 28% |
| ESR-REIT | J91U | 1,866 | 0% | 3% | 5% | 13% |
| CDL HOSPITALITY TRUSTS* | J85 | 1,952 | -2% | -2% | 10% | 17% |
| CAPITALAND RETAIL CHINA TRUST | AU8U | 1,898 | 3% | 3% | 16% | 25% |
| EAGLE HOSPITALITY TRUST* | LIW | 636 | -4% | -21% | -25% | -25% |
| CROMWELL EUROPEAN REIT | CNNU | 1,973 | 1% | 2% | 13% | 21% |
| MANULIFE US REIT | BTOU | 2,039 | 5% | 6% | 25% | 36% |
| AIMS APAC REIT | O5RU | 1,010 | 8% | 2% | 9% | 17% |
| FIRST REAL ESTATE INVT TRUST | AW9U | 814 | 2% | 3% | 4% | 13% |
| STARHILL GLOBAL REIT | P40U | 1,583 | -1% | -1% | 7% | 13% |
| PARKWAYLIFE REAL ESTATE | C2PU | 1,960 | 0% | 5% | 23% | 29% |
| ASCENDAS HOSPITALITY TRUST* | Q1P | 1,275 | 0% | 5% | 45% | 54% |
| FAR EAST HOSPITALITY TRUST* | Q5T | 1,425 | 3% | 9% | 22% | 30% |
| CACHE LOGISTICS TRUST | K2LU | 762 | -1% | -3% | 1% | 10% |
| LENDLEASE GLOBAL COMMERCIAL | JYEU | 1,075 | -3% | 5% | 5% | 5% |
| SPH REIT | SK6U | 2,806 | -5% | 0% | 8% | 14% |
| SASSEUR REIT | CRPU | 1,045 | 10% | 10% | 35% | 47% |
| KEPPEL PACIFIC OAK US REIT | CMOU | 967 | 3% | -1% | 25% | 38% |
| OUE COMMERCIAL REIT | TS0U | 3,043 | 5% | 5% | 23% | 31% |
| EC WORLD REIT | BWCU | 598 | 5% | 5% | 9% | 18% |
| SOILBUILD BUSINESS SPACE REIT | SV3U | 655 | 3% | -1% | -10% | -3% |
| FRASERS HOSPITALITY TRUST* | ACV | 1,356 | 0% | 2% | 1% | 8% |
| LIPPO MALLS INDONESIA RETAIL | D5IU | 695 | 2% | 7% | 32% | 44% |
| ARA US HOSPITALITY TRUST* | XZL | 654 | -2% | -5% | -4% | -4% |
| SABANA SHARIAH COMP IND REIT | M1GU | 495 | 4% | 5% | 21% | 29% |
| BHG RETAIL REIT | BMGU | 355 | 0% | 0% | -2% | 4% |
| PRIME US REIT | OXMU | 1,223 | 5% | 3% | 10% | 10% |
| IREIT GLOBAL | UD1U | 503 | -1% | 5% | 9% | 18% |
| Average | 1% | 2% | 15% | 22% |
* Stapled Trusts;
Source: SGX, Thomson Reuters, Bloomberg (Data as of 26 Nov 2019)
Singapore REITs have continued to tap secondary markets to fund acquisitions this quarter – with new units issued by Mapletree Commercial Trust, Keppel Pacific Oak US REIT, Mapletree Logistics Trust, ESR REIT, Keppel DC REIT and Manulife US REIT. To partially fund a proposed acquisition of 28 business park properties in the United States, the Manager of Ascendas REIT is carrying out a Rights Issue. The new rights units associated with the $1.310 billion equity fund raising are expected to commence trading on Dec 6.
