SGX Market Updates

iEdge SG Real Estate 20 Index Rallied 20% in 2019 YTD


PUBLISHED ON |

19 December 2019

  • 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.



iEdge SG Real Estate Index Total Returns in 2019 YTD



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. 



iEdge SG Real Estate Index Weightings



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.







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