The iEdge SG Real Estate 20 Index has generated a 20.2% total return in the 2019 YTD. Real Estate Developers and Managers make up more than one third of the Index weights, with the remainder made up by REITs and Property Trusts.
The 6 Developers and Managers generated mixed total returns in the 2019 YTD from Hongkong Land’s decline of 10.1% to City Dev’s gain of 35.3%. Despite the comparatively strong REIT market in 2019, Developers contributed 2 of the Index’s 5 strongest performers.
The 20 constituents of the iEdge SG Real Estate 20 Index represent 14% of the total market value of all stocks listed on SGX stocks, however have accounted for 26% of the day-to-day trading turnover in the 2019 YTD.
The iEdge SG Real Estate 20 Index is a free-float market capitalisation weighted index that measures the performance of the largest and most tradable companies in the broader iEdge SG Real Estate Index. The 2 indices have seen similar returns in the 2019 year-to-date, which have also converged with the largest 100 real estate stocks across the world, in addition to the Asia Pacific region.
The iEdge SG Real Estate 20 Index is a narrow and well-diversified portfolio allowing highly efficient access into the listed real estate sector in Singapore. The iEdge SG Real Estate 20 Index constituents consist of 6 real estate development and management companies, with 14 trusts consisting of 13 Real Estate Investment Trusts (“REITs”) and 1 stapled trust. The respective weightings of the constituents and full market capitalisation weighted performances are tabled below.
The iEdge SG Real Estate 20 Index has seen its Sharpe ratio pick up to 1.25 over the 12 months ending November, with its longer term 3 year Sharpe Ratio at 0.81. Sharpe ratios compare risk-free rates with the return of the Index and standard deviations of the Index’s return.
Although the real estate stocks do tend to be directionally correlated, adding to overall Index volatility, the maximum drawdown seen in the 2019 year-to-date on a month-to-month basis was 3.5%. This compared to the iEdge SG Real Estate 20 Index generating a maximum month-to-month drawdown of 15.8% over the three year period ending November.
The 6 Real estate Development and Management companies of the iEdge SG Real Estate 20 Index generated mixed returns in the 2019 year to date, from Hongkong Land’s decline of 10.1% to City Development’s total return of 35.3%.
| Real Estate Development and Management companies |
SGX Code |
Indicative Weight |
Turnover Rank Within Index |
Mkt Cap S$M |
Total Return 2019 YTD % |
Annualised 3 Year Total Return % |
|---|---|---|---|---|---|---|
| CAPITALAND | C31 | 10.1% | 2 | 18,506 | 22.0 | 10.0 |
| CITY DEVELOPMENTS | C09 | 9.3% | 9 | 9,749 | 35.3 | 11.5 |
| HONGKONG LAND HOLDINGS | H78 | 7.3% | 6 | 17,603 | -10.1 | -2.9 |
| UOL GROUP | U14 | 6.4% | 12 | 6,772 | 32.7 | 10.9 |
| YANLORD LAND GROUP | Z25 | 1.0% | 18 | 2,241 | 0.1 | -1.7 |
| GUOCOLAND | F17 | 0.7% | 20 | 2,331 | 13.3 | 5.8 |
Source: SGX, Thomson Reuters, Bloomberg (Data as of 17 Dec 2019)
iEdge SG Real Estate 20 Index Rallied 46.6% Over Past 3 Years
The past 3 years have seen synchronous global growth in 2017, with momentum easing in mid-2018 to see a synchronous decline in global growth rates in 2019 as discussed here. All 20 constituents of the iEdge SG Real Estate 20 were listed for the duration.
The full 20 constituents and respective weightings are tabled below. The iEdge SG Real Estate 20 Index has generated a 46.6% total return over the past three years, which represents an annualised total return of 13.6%.
The strongest performer of the 20 constituents of the Index was Mapletree Logistics Trust which joins the Straits Times Index effective the open of Dec 23, as discussed here. Mapletree Logistics Trust listed on SGX on July 28, 2005 with 15 Singapore properties and a portfolio value of S$422 million, and as of Sep 30, its 137 logistics assets in Singapore, Hong Kong SAR, Japan, China, Australia, South Korea, Malaysia and Vietnam maintained an AUM of S$7.95 billion.
| Name | SGX Code |
Indicative Weight |
Turnover Rank Within Index |
Mkt Cap S$M |
Total Return 2019 YTD % |
Annualised 3 Year Total Return % |
|---|---|---|---|---|---|---|
| CAPITALAND | C31 | 10.1% | 2 | 18,506 | 22.0 | 10.0 |
| ASCENDAS REAL ESTATE INV TRT | A17U | 9.9% | 1 | 10,507 | 21.8 | 15.2 |
| CITY DEVELOPMENTS | C09 | 9.3% | 9 | 9,749 | 35.3 | 11.5 |
| CAPITALAND MALL TRUST | C38U | 8.6% | 3 | 8,890 | 11.1 | 14.0 |
| CAPITALAND COMMERCIAL TRUST | C61U | 7.6% | 4 | 7,561 | 17.4 | 16.2 |
| HONGKONG LAND HOLDINGS | H78 | 7.3% | 6 | 17,603 | -10.1 | -2.9 |
| MAPLETREE COMMERCIAL TRUST | N2IU | 6.5% | 5 | 7,605 | 46.8 | 24.5 |
| MAPLETREE LOGISTICS TRUST | M44U | 6.4% | 7 | 6,341 | 40.3 | 26.3 |
| UOL GROUP | U14 | 6.4% | 12 | 6,772 | 32.7 | 10.9 |
| MAPLETREE INDUSTRIAL TRUST | ME8U | 5.1% | 11 | 5,524 | 38.9 | 21.8 |
| SUNTEC REIT | T82U | 4.4% | 8 | 5,042 | 6.5 | 8.5 |
| MAPLETREE NAC TRUST | RW0U | 3.6% | 10 | 3,610 | 5.2 | 13.1 |
| KEPPEL REIT | K71U | 3.2% | 14 | 4,076 | 11.1 | 10.7 |
| FRASERS LOGISTICS & INDUSTRIAL | BUOU | 2.6% | 13 | 2,665 | 21.5 | 16.0 |
| ASCOTT RESIDENCE TRUST | A68U | 2.3% | 16 | 2,898 | 30.8 | 12.9 |
| FRASERS CENTREPOINT TRUST | J69U | 2.1% | 15 | 2,995 | 29.8 | 18.2 |
| CDL HOSPITALITY TRUSTS | J85 | 1.8% | 17 | 1,940 | 15.9 | 15.0 |
| SPH REIT | SK6U | 1.0% | 19 | 2,976 | 15.2 | 10.8 |
| YANLORD LAND GROUP | Z25 | 1.0% | 18 | 2,241 | 0.1 | -1.7 |
| GUOCOLAND | F17 | 0.7% | 20 | 2,331 | 13.3 | 5.8 |
Source: SGX, Thomson Reuters, Bloomberg (Data as of 17 Dec 2019).
Note constituent weights may exceed the 10% cap depending on its performance between rebalancing periods. Index constituents will have their index weights capped at 10% at each semi-annual rebalance date.
