SGX Market Updates

REITs Edge Higher on Fed Policy-Inflation Outlook


PUBLISHED ON |

27 November 2019

  • 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.







This article is provided by SGX My Gateway.



SGX My Gateway

SGX's investor education portal with market, product and investment information and events. Sign up now at sgx.com/mygateway to receive our investment updates and economic calendar.

This document is not intended for distribution to, or for use by or to be acted on by any person or entity located in any jurisdiction where such distribution, use or action would be contrary to applicable laws or regulations or would subject Singapore Exchange Limited (“SGX”) to any registration or licensing requirement. This document is not an offer or solicitation to buy or sell, nor financial advice or recommendation for any investment product. This document is for general circulation only. It does not address the specific investment objectives, financial situation or particular needs of any person. Advice should be sought from a financial adviser regarding the suitability of any investment product before investing or adopting any investment strategies. Use of and/or reliance on this document is entirely at the reader’s own risk. Further information on this investment product may be obtained from www.sgx.com. Investment products are subject to significant investment risks, including the possible loss of the principal amount invested. Past performance of investment products is not indicative of their future performance. Examples provided are for illustrative purposes only. While each of SGX and its affiliates (collectively, the SGX Group Companies) have taken reasonable care to ensure the accuracy and completeness of the information provided, each of the SGX Group Companies disclaims any and all guarantees, representations and warranties, expressed or implied, in relation to this document and shall not be responsible or liable (whether under contract, tort (including negligence) or otherwise) for any loss or damage of any kind (whether direct, indirect or consequential losses or other economic loss of any kind, including without limitation loss of profit, loss of reputation and loss of opportunity) suffered or incurred by any person due to any omission, error, inaccuracy, incompleteness, or otherwise, any reliance on such information, or arising from and/or in connection with this document. The information in this document may have been obtained via third party sources and which have not been independently verified by any SGX Group Company. No SGX Group Company endorses or shall be liable for the content of information provided by third parties. The SGX Group Companies may deal in investment products in the usual course of their business, and may be on the opposite side of any trades. SGX is an exempt financial adviser under the Financial Advisers Act (Cap. 110) of Singapore. The information in this document is subject to change without notice. This document shall not be reproduced, republished, uploaded, linked, posted, transmitted, adapted, copied, translated, modified, edited or otherwise displayed or distributed in any manner without SGX’s prior written consent.












Stock / REIT Search

Advertisement

Advertisement