SGX Market Updates

Significant Milestones for S-REITs in 2019


PUBLISHED ON |

06 January 2020

  • 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
(S$M)
2019
Volatility
2019
Price Change
2019
Total Return
Country of
Largest Revenue
as of most
recently
reported FY
Average
Daily
Turnover
(S$M)
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
SUNTEC REIT T82U 5,154 15% 3% 9% Singapore 16.4
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
KEPPEL REIT K71U 4,175 14% 9% 14% Singapore 8.3
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
ESR-REIT J91U 1,848 19% 4% 12% Singapore 3.2
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
PARKWAYLIFE REIT C2PU 2,009 14% 26% 32% Singapore 1.5
ASCENDAS HOSPITALITY TRUST * 1,275 17% 45% 54% Australia 1.5
LENDLEASE GLOBAL COMMERCIAL JYEU 1,086 16% 6% 6% Singapore 1.5
SPH REIT SK6U 2,948 13% 7% 14% 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
SASSEUR REIT CRPU 1,059 17% 36% 52% China 1.2
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
IREIT GLOBAL UD1U 516 11% 12% 21% Germany 0.3
DASIN RETAIL TRUST ** CEDU 540 10% -3% 6% China 0.2
Average     17% 16% 23%    

Source: SGX StockFacts, Thomson Reuters, Bloomberg (Data as of 31 December 2019)
* Stapled Trust
** Business Trust



Index Inclusions 

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.







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