Singapore’s REITs, stapled and property trusts contributed 24% to day-to-day turnover of Singapore’s stock market in 2019, whilst maintaining a combined market value that was 12% of Singapore’s stock market capitalisation at the end of 2019.
These 43 trusts also generated average total returns of 23% in 2019, and ended 2019 with an average 6% distribution yield. The strongest performers of these trusts were Keppel DC REIT, Ascendas Hospitality Trust, Ascendas India Trust, Mapletree Commercial Trust & Sasseur REIT.
The STI now includes 5 REITs which have a combined index weighting close to 10%. Mapletree Commercial Trust and Mapletree Logistics Trust respectively joined the STI in successive quarterly rebalances in Sep and Dec 2019.
In 2019, global Real Estate Investment Trusts (REITs) generated their strongest year of gains in 10 years and one of their 5 strongest years since REITs were established in Singapore in 2002.
At the end of 2019, Singapore listed 35 REITs, 6 stapled trusts and 2 property trusts. These trusts contributed 24% to day-to-day turnover of Singapore’s stock market in 2019. In contrast, the 43 trusts maintained a combined market value of S$111.9 billion, which was 12% of Singapore’s stock market capitalisation of S$937.8 billion at the end of 2019.
As many as 25 of the 43 trusts outpaced the 9.4% total return of the Straits Times Index (STI) in 2019. The 43 trusts averaged a 23% total return in 2019, with the 39 trusts that were listed for the full duration of the year averaging a 26% total return. By comparison global REITs generated a median total return of 21% in 2019. As discussed in the recent market update: STI Clocks 9.4% Total Return in 2019, total returns are accumulative returns and assume dividends are reinvested into units or shares on the ex-dividend date.
The 43 trusts, ranked by highest day-to-day turnover in 2019 are tabled below.
|Name||SGX Code||Mkt Cap
as of most
|ASCENDAS REAL ESTATE INV TRT||A17U||10,730||15%||18%||24%||Singapore||35.1|
|CAPITALAND MALL TRUST||C38U||9,074||17%||9%||13%||Singapore||25.3|
|CAPITALAND COMMERCIAL TRUST||C61U||7,677||16%||14%||19%||Singapore||24.5|
|MAPLETREE COMMERCIAL TRUST||N2IU||7,903||20%||45%||53%||Singapore||23.3|
|MAPLETREE LOGISTICS TRUST||M44U||6,607||18%||38%||46%||Singapore||18.7|
|MAPLETREE NORTH ASIA COMMERCIAL TRUST||RW0U||3,705||21%||2%||8%||Hong Kong||12.3|
|MAPLETREE INDUSTRIAL TRUST||ME8U||5,722||16%||36%||44%||Singapore||11.3|
|KEPPEL DC REIT||AJBU||3,395||21%||57%||66%||Singapore||8.7|
|FRASERS LOGISTICS & INDUSTRIAL||BUOU||2,801||20%||20%||28%||Australia||8.4|
|FRASERS CENTREPOINT TRUST||J69U||3,140||18%||30%||36%||Singapore||5.9|
|ASCOTT RESIDENCE TRUST||2,898||15%||23%||31%||US||5.1|
|FRASERS COMMERCIAL TRUST||ND8U||1,519||18%||21%||29%||Australia||3.7|
|CDL HOSPITALITY TRUSTS *||J85||1,964||15%||11%||17%||Singapore||3.3|
|MANULIFE US REIT||BTOU||2,110||15%||29%||40%||US||3.1|
|CAPITALAND RETAIL CHINA TRUST||AU8U||1,947||17%||19%||28%||China||3.1|
|EAGLE HOSPITALITY TRUST *||LIW||639||39%||-32%||-32%||US||2.7|
|CROMWELL EUROPEAN REIT||CNNU||2,076||19%||19%||28%||Netherlands||2.2|
|AIMS APAC REIT||O5RU||1,004||15%||8%||16%||Singapore||1.9|
|FIRST REAL ESTATE INVT TRUST||AW9U||794||19%||1%||10%||Indonesia||1.9|
|ASCENDAS INDIA TRUST **||CY6U||1,772||22%||44%||53%||India||1.7|
|STARHILL GLOBAL REIT||P40U||1,583||14%||7%||13%||Singapore||1.7|
|ASCENDAS HOSPITALITY TRUST *||1,275||17%||45%||54%||Australia||1.5|
|LENDLEASE GLOBAL COMMERCIAL||JYEU||1,086||16%||6%||6%||Singapore||1.5|
|FAR EAST HOSPITALITY TRUST *||Q5T||1,438||17%||22%||30%||Singapore||1.4|
|CACHE LOGISTICS TRUST||K2LU||773||17%||3%||11%||Singapore||1.3|
|KEPPEL PACIFIC OAK US REIT||CMOU||980||17%||26%||39%||US||1.1|
|OUE COMMERCIAL REIT||TS0U||3,043||18%||23%||31%||Singapore||1.0|
|EC WORLD REIT||BWCU||597||13%||8%||17%||China||0.8|
|SOILBUILD BUSINESS SPACE REIT||SV3U||656||16%||-10%||-3%||Singapore||0.7|
|FRASERS HOSPITALITY TRUST *||ACV||1,356||11%||1%||8%||Australia||0.6|
|LIPPO MALLS INDONESIA RETAIL||D5IU||651||35%||24%||35%||Indonesia||0.6|
|BHG RETAIL REIT||BMGU||348||22%||-4%||2%||China||0.4|
|PRIME US REIT||OXMU||1,201||14%||8%||8%||US||0.4|
|ARA US HOSPITALITY TRUST *||XZL||664||14%||-2%||-2%||US||0.4|
|SABANA SHARIAH COMP IND REIT||M1GU||484||19%||18%||26%||Singapore||0.4|
|DASIN RETAIL TRUST **||CEDU||540||10%||-3%||6%||China||0.2|
The STI now includes 5 REITs which have a combined index weighting close to 10%. Mapletree Commercial Trust and Mapletree Logistics Trust respectively joined the STI in successive quarterly rebalances in September and December 2019. 4 of the 5 stocks of the STI Reserve List are also REITs - Suntec REIT, Mapletree Industrial Trust, Keppel REIT and Mapletree North Asia Commercial Trust.
SGX also now lists 26 real estate stocks that are included within the FTSE EPRA/Nareit Global Real Estate Index Series which include Hongkong Land and Yanlord Land Group. There are a total of 477 constituents in the FTSE EPRA/Nareit Global Real Estate Index Series. Including Hongkong Land and Yanlord Land Group, the 26 SGX-listed constituents represent 5.5% of the number of constituents in the FTSE EPRA/Nareit Global Real Estate Index Series and approximately 3.0% of the FTSE EPRA/Nareit Global Index weight.
Record Secondary Fundraisings in 2019
These 43 trusts also had a significant impact on secondary fundraisings in 2019 through placements and rights issues. Of the S$5.92 billion in placements in 2019, the trusts contributed 88% or S$5.22 billion. Note that OUE Commercial REIT contributed S$1.42 billion of this, which was related to its merger with OUE Hospitality Trust. The merger was announced on 8 April 2019, and completed on 4 September 2019, creating one of the largest diversified REITs listed in Singapore with seven high quality prime properties located in Singapore and Shanghai. Of the S$2.90 billion in rights issues in 2019, the trusts contributed 84% or S$2.44 billion.
Excluding the OUE Commercial REIT placement of S$1.42 billion, 18 of these trusts contributed a record S$6.24 billion of the combined S$7.40 billion in placements and rights issues of SGX-listed companies 2019. Including OUE Commercial REIT’s placements, 19 trusts raised S$7.66 billion, of a total of S$8.82 billion in secondary fundraisings in 2019.
Integration and Mergers in 2019 and 2020
Back on 18 May 2018, ESR-REIT and Viva Industrial Trust proposed to merge, with the merger completed on 15 October 2018. A few months later, on 14 January 2019, CapitaLand and Ascendas-Singbridge announced an S$11 billion deal to create Asia’s largest diversified real estate group. The aforementioned merger of OUE Commercial REIT and OUE Hospitality Trust was proposed on 8 April 2019, and completed on 4 September 2019.
On June 30, the integration of CapitaLand and Ascendas-Singbridge was completed. Soon after, on 3 July 2019, Ascott Residence Trust and Ascendas Hospitality Trust proposed a combined entity which became effective on 2 January 2020.
This means Singapore now lists a total of 34 REITs, 6 stapled trusts and 2 property trusts as Ascott Residence Trust and Ascendas Hospitality Trust have merged to form a combined stapled trust entity, with Trading Name Ascott Trust and Stock Code HMN. Rationale for the combination including consolidating the position of the combined portfolio as the largest hospitality trust in Asia Pacific, increasing capacity for development and conversion projects, enhancing financial flexibility, supporting the facilitation of inclusion into FTSE EPRA Nareit Developed Index and providing a DPU accretion.
Similarly, when Frasers Logistics & Industrial Trust (FLT) and Frasers Commercial Trust (FCOT) proposed a merger by way of Trust Scheme on 2 December 2019, rationale included DPU accretion on a pro forma basis, a broader investment mandate, an improvement in the enlarged REIT’s weightage within the FTSE EPRA/NAREIT Index, enhanced geographical diversification and an increased capital base and debt headroom.