SGX Market Updates

Defensive Nature of S-REITs Draws Fund Flows in January 2020


PUBLISHED ON |

19 February 2020

  • Singapore REITs was the top net buy sector in Jan 2020, garnering net institutional inflows of S$174.9 mln, SGX data showed. This reversed net outflows of S$102.5 mln and S$127.5 mln in Dec 2019 and Nov 2019 respectively.

  • The top institutional net buy REITs in Jan were: CapitaLand Commercial Trust (+S$68.1 mln), Ascendas REIT (+S$64.0 mln), CapitaLand Mall Trust (+S$25.7 million) and Mapletree Industrial Trust (+S$22.3 mln).

  • In the 2020 YTD, the four top institutional net buy REITs in Jan have generated a total return of 8.1%. Over calendar year 2019, they averaged a total return of 25.2%, bringing their 3Y total return to 66.9%.




SGX lists 36 REITs, 6 stapled trusts and 2 property trusts with a combined market cap of over S$100 billion. Singapore REITs was the top net buy sector in January 2020, garnering net institutional inflows of S$174.9 million, SGX data showed. This reversed net outflows of S$102.5 million and S$127.5 million in December and November 2019 respectively


Jan20 SGX Institutional Inflow


Jan20 S-REIT Sector Return


Jan20 SGX Top Instituitional Net Buys



CapitaLand Commercial Trust (CCT) and CapitaLand Mall Trust (CMT) attracted high fund inflows in January following the announcement of their proposed merger to create Asia Pacific’s third-largest REIT – CapitaLand Integrated Commercial Trust (CICT) – through an S$8.3 billion cash-and-stock deal. The merger, which is at least the fifth tie-up among Singapore-listed REITs in the past 12 months, is expected to create a combined entity with a market cap of about S$17 billion and property value of over S$20 billion.

CMT is the largest mall owner in Singapore with 15 shopping centres, while CCT is the biggest office landlord with 10 assets – eight in Singapore and two in Frankfurt, Germany. The deal, by way of a trust scheme of arrangement, is subject to the approval of unitholders of CMT and CCT, and will see CMT acquiring all the issued units in CCT in the form of cash and new CMT units. The proposed merger is subject to approval by unitholders of CMT and CCT at upcoming extraordinary general meetings, the approval of CCT unitholders at a scheme meeting – expected in May – as well as regulatory and third-party approvals.

For a Market Update on the December quarter earnings of SGX’s three largest industrial REITs – Ascendas REIT, Mapletree Logistics Trust and Mapletree Industrial Trust – see SGX Largest Industrial REITs' December19 Quarter Earnings.

See also SGX’s Largest Office REITs ~ 2019 December Quarter Earnings.


In the 2020 year-to-date, January’s four top institutional net buy REITs have generated a total return of 8.1%. Over calendar year 2019, they averaged a total return of 25.2%, bringing their three-year total return to 66.9%.

The table below details January’s four top institutional net buy REITs, sorted by market cap.

Name SGX
Code
Market
Cap
S$m
Total
Return
2019
%
Total
Return
YTD
%
Total
Return
1 Yr
%
Total
Return
3 Yr
%
ASCENDAS REIT A17U 11,904 24.3 11.0 29.8 58.1
CAPITALAND MALL TRUST C38U 9,259 13.4 3.3 10.5 48.0
CAPITALAND COMMERCIAL TRUST C61U 8,063 19.2 7.0 15.9 57.9
MAPLETREE INDUSTRIAL TRUST ME8U 6,317 43.9 11.3 51.5 103.7
Average 25.2 8.1 26.9 66.9

Source: Bloomberg & StockFacts (data as of 12 Feb 20)







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