SGX Market Updates

S-REIT Index’s 3 Best Performers Clocked 50% Total Return in 2019 YTD


PUBLISHED ON |

13 November 2019

  • SGX lists 35 REITs, 6 stapled trusts and 2 property trusts with a combined market cap of over S$100 billion. The 36-constituent iEdge S-REIT Index is a free-float, market cap-weighted index that tracks the performance of REITs listed in Singapore.

  • In the 2019 YTD, the iEdge S-REIT Index has generated a total return of 24.9%, compared with a total return of 18.9% for the FTSE EPRA NAREIT Asia ex-Japan REITs Index. This also compares with total returns of 10.3% and 11.6% for the benchmark STI and broader FTSE ST All-Share Index respectively.

  • In the YTD, the 3 best-performing constituents of the iEdge S-REIT Index were: Ascendas India Trust (+52.7%), Keppel DC REIT (+51.6%) and Ascendas Hospitality Trust (+50.0%). The trio averaged a total return of +51.4% over the period.




SGX lists 35 REITs, 6 stapled trusts and 2 property trusts with a combined market capitalisation of over S$100 billion. REIT popularity in Singapore is exemplified in multiple ways – 4 of the 30 constituents of the benchmark Straits Times Index (STI) comprise REITs, and account for about 8% of total index weight, while the entire STI Reserve List consists of REITs.

The latest addition to the REITs listed on SGX was Lendlease Global Commercial REIT, sponsored by Australia’s Lendlease Group, which made its debut on the Mainboard on 2 Oct 2019.

The iEdge S-REIT Index is a free-float, market cap-weighted index that tracks the performance of REITs listed on SGX. The Index’s 36 constituents have a combined market capitalisation of nearly S$100 billion.

In the 2019 year-to-date, the iEdge S-REIT Index has generated a total return of 24.9%, compared with a total return of 18.9% for the FTSE EPRA NAREIT Asia ex-Japan REITs Index. This also compares with total returns of 10.3% and 11.6% for the benchmark Straits Times Index (STI) and broader FTSE ST All-Share Index respectively.



SREIT Index YTD Returns

Source: Bloomberg



In the YTD, the 3 best-performing constituents of the iEdge S-REIT Index were: Ascendas India Trust (+52.7%), Keppel DC REIT (+51.6%) and Ascendas Hospitality Trust (+50.0%). The trio have averaged a total return of +51.4% in the YTD, bringing their three-year and five-year total returns to +81.5% and +93.1% respectively. Note that five-year total return data does not apply to Keppel DC REIT, which was listed in December 2014.

Note also that RHT Health Trust was not included in this analysis, as it has become a cash trust after completing the disposal of its entire portfolio of healthcare assets to its controlling unitholder, Fortis Healthcare, in January this year.

The proposed merger between Ascendas Hospitality Trust and Ascott Residence Trust has been approved by stapled security holders of Ascendas Hospitality Trust on 21 Oct 2019. Subject to the merged entity being sanctioned by the Court, the last trading day for the stapled securities of Ascendas Hospitality Trust is expected to be on 16 Dec 2019, with delisting scheduled for 3 Jan 2020.



The table below details the constituents of the iEdge S-REIT Index (except for RHT Health Trust), sorted by YTD total return.

Name SGX
Code
Market
Cap
S$m
Total
Return
YTD
%
Total
Return
3 Yr
%
Total
Return
5 Yr
%
Ascendas India Trust CY6U 1,628 52.7 72.6 155.4
Keppel DC REIT AJBU 3,096 51.6 84.8 NA
Ascendas Hospitality Trust Q1P 1,241 50.0 87.2 123.8
Mapletree Commercial Trust N2IU 7,029 44.9 76.1 115.5
Lippo Malls Indonesia Retail Trust D5IU 709 43.7 -18.0 2.0
Mapletree Logistics Trust M44U 6,006 38.7 91.4 96.1
Mapletree Industrial Trust ME8U 5,436 36.7 75.3 128.9
Sasseur REIT CRPU 961 35.2 NA NA
Manulife US REIT BTOU 1,456 32.2 51.3 NA
Ascott Residence Trust A68U 2,920 31.8 45.6 54.4
Parkway Life REIT C2PU 1,972 29.5 49.4 77.3
Frasers Centrepoint Trust J69U 2,928 26.9 50.7 80.4
Frasers Commercial Trust ND8U 1,469 25.0 48.5 58.6
Frasers Logistics & Industrial Trust BUOU 2,744 24.6 50.2 0.0
Sabana Shari'ah Compliant Industrial REIT M1GU 479 24.6 27.3 -20.9
Far East Hospitality Trust Q5T 1,367 24.3 43.4 19.3
OUE Commercial REIT TS0U 2,877 23.2 5.1 17.3
CapitaLand Retail China Trust AU8U 1,844 21.3 30.3 34.8
CapitaLand Commercial Trust C61U 7,793 21.0 55.4 65.2
Ascendas REIT A17U 8,996 20.9 49.9 76.8
SPH REIT SK6U 2,936 19.0 37.0 39.3
Mapletree North Asia Commercial Trust RW0U 4,049 18.2 51.4 86.3
IREIT Global UD1U 502 17.6 37.1 50.7
CDL Hospitality Trusts J85 1,940 15.9 48.8 36.2
CapitaLand Mall Trust C38U 9,185 14.8 45.7 67.1
Starhill Global REIT P40U 1,605 14.8 13.6 24.4
EC World REIT BWCU 586 13.1 21.6 NA
First REIT AW9U 822 11.4 -5.5 15.5
ESR-REIT J91U 1,828 11.2 19.0 12.4
AIMS APAC REIT O5RU 976 11.2 27.7 38.1
Keppel REIT K71U 4,077 10.2 27.8 30.7
Cache Logistics Trust K2LU 762 9.5 11.6 -6.8
Suntec REIT T82U 5,126 8.3 28.4 30.0
Frasers Hospitality Trust ACV 1,356 7.8 27.9 21.4
Soilbuild Business Space REIT SV3U 617 -8.3 -4.8 -5.5
Average 23.8 39.0 43.6

Source: Bloomberg & StockFacts (data as of 8 Nov 2019)



Quarterly Earnings Highlights of YTD Best Performers


Ascendas India Trust (2Q ended 30 Sept 2019)
  • Total property income up 11% YoY to S$49.6 million.
  • Net property income up 18% to S$39.0 million.
  • Distribution per unit (DPU) up 15% to 2.28 Singapore cents.
  • Outlook:
    • Overall committed occupancy remains robust at 99% as of 30 Sept 2019.
    • Continues to focus on expanding its portfolio across IT Park and Logistics sectors.
    • Recently entered into forward purchase agreements for Blueridge 3 in Pune and a 7th warehouse in Panvel, Navi Mumbai.

Note: Avg SGD/INR exchange rate of 51.5 used.

Click here for the full results release.



Keppel DC REIT (3Q ended 30 Sept 2019)
  • Gross revenue down 2.5% YoY to S$46.4 million.
  • Net property income down 1.8% to S$42.3 million.
  • DPU up 4.3% to 1.93 Singapore cents.
  • Outlook:
    • The data centre market remains strong, supported by ongoing digitalisation and cloud deployments.
    • Improved connectivity, as well as the development and adoption of new technologies, will continue to drive growth of data creation, and fuel demand for data storage requirements in key data centre hubs globally.
    • Building on the Keppel Group’s capabilities in project development and facilities management, the Manager will continue to seek opportunities and strengthen its presence across key data centre hubs globally.

Click here for the full results release.



Ascendas Hospitality Trust (2Q ended 30 Sept 2019)
  • Gross revenue up 2.4% YoY to S$47.5 million.
  • Net property income up 3.5% to S$21.2 million.
  • DPU down 5.5% to 1.38 Singapore cents.
  • Adjusted DPU (excludes partial distribution of proceeds from divestments in year-ago quarter) up 4.5% to 1.38 Singapore cents.
  • Outlook:
    • Demand for hotels in Australia is expected to grow as both international arrivals and domestic overnight trips continue to improve. Market conditions in Sydney and Melbourne are likely to stay competitive due to increased room supply, while that of Brisbane is expected to continue recovering.
    • The proposed development of two integrated resorts in Japan will benefit the country's tourism sector over the longer term. The 2020 Tokyo Olympics is expected to boost the Tokyo hotel market, while Osaka will likely face weakness due to fewer South Korean visitors following ongoing tensions between the two countries.
    • With upcoming supply of hotel rooms expected to remain moderate, South Korea's hotel market will likely improve as tourist arrivals continue growing.
    • The expansion of Singapore's two integrated resorts is anticipated to drive higher visitor arrivals over the longer term. This will also support the hotel market amidst a modest increase in supply. 

Note: The trust’s current FY will be a 9M period (1 April 2019-31 Dec 2019) following change of financial year end to 31 Dec.

Click here for the full results release.







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