Keppel DC REIT, Mapletree Logistics Trust & Parkway Life REIT have generated gains in the 2020 YTD, leading the overall S-REIT Sector which has averaged a 22% decline over the period, with an average 38% decline to 23 March, and an average 28% gain from 23 March to 27 April.
Keppel DC REIT, Mapletree Logistics Trust & Parkway Life REIT are also amongst the 22 S-REITs that report more than a third of their revenue to Singapore. Of the 22 S-REITs, 14 have been listed for the past 10 years with average annualised total returns of 7%.
In line with its capital recycling strategy and in order to realise profits that can be redeployed to capture new opportunities, Keppel T&T has entered into a Sale and Purchase Agreement with a placement agent for the sale of 38 million units in Keppel DC REIT at S$2.42 per Sale Unit.
With a combined market value of S$90 billion, S-REITs make up 11% of the market capitalisation of all stocks in Singapore. Growing investor participation in recent years has seen REITs contributing 29% of daily turnover in the 2020 year to 27 April.
The majority of the S-REIT market capitalisation and S$425 million in average daily turnover in the 2020 year to 27 April is made up of the 22 REITs or Stapled Trusts that report at least one-third of their revenue to Singapore.
There has been less distinction in the 2020 year-to-date total returns, with the 22 S-REITs that report more than a third of their revenue to Singapore seeing similar swings as the S-REITs that report less than a third to none of their revenue to Singapore. As illustrated below, the two genres of S-REITs saw similar declines in the 2020 year through to 23 March, and similar partial recoveries from 23 March to 27 April.
For a more detailed breakdown of the S-REIT Sector, investors can refer to the SREIT & Property Trusts Chartbook - April 2020 here.
Trio of REITs that have Lodged Gains in 2020 YTD
The 22 S-REITs that report more than a third of their revenue to Singapore included the three strongest S-REITs in the 2020 year through to 27 April that bucked the global trend of declines.
Keppel DC REIT generated a 22.2% total return in the 2020 year through to 27 April, with Mapletree Logistics Trust gaining 4.2% and Parkway Life REIT gaining 0.9%. Both Keppel DC REIT and Mapletree Logistics Trust were amongst the three S-REITs that saw the highest net institutional inflows over the 17 weeks.
Keppel T&T Realising Profits in Keppel DC REIT
In its 1QFY20 Key Business and Operational Update (click here), Keppel DC REIT reported its 1QFY20 (ended 31 Mar) gross revenue rose 25.5% from 1QFY19.
Prior to the 28 April session, Keppel Corporation announced that Keppel Telecommunications & Transportation (“Keppel T&T”), through its indirect wholly-owned subsidiary, Keppel DC Investment Holdings had on 27 April 2020 entered into a sale and purchase agreement with Credit Suisse (Singapore) Limited as the placement agent for the sale of 38 million units in Keppel DC REIT.
These sales units represent approximately 2.33% of the total issued units in Keppel DC REIT, with a consideration of S$2.42 per sale unit. In line with the Group’s capital recycling strategy, the sale allows Keppel T&T to realise profits that can be redeployed to capture new opportunities. As maintained in the announcement (click here) Keppel T&T continues to be the single largest unitholder of Keppel DC REIT with a unitholding of 20.58%.
Mapletree Logisitics Trust Performance Underpinned by Stable Operations & Accretive Acquisition
On 23 April, Mapletree Logistics Trust reported its FY19/20 (ended 31 Mar) DPU rose 2.5% from FY18/19 to 8.142 cents. The Managers of Mapletree Logistics Trust maintained that currently most of its tenants across its eight markets are operational: In Mapletree Logistics Trust’s top three core markets, for Hong Kong SAR ;and Japan, all tenants remain fully operational, while for Singapore about 5% of its tenant base is impacted. The Managers added that there are strict government measures in certain markets, its tenants’ operations have remained largely intact:
- Overall, tenants from the retail, hospitality and travel industries, which account for about 10% of Mapletree Logistics Trust’s revenue, are the hardest hit by COVID-19; while
- Tenants who serve essential daily needs, such as food and beverage products, consumer staples and healthcare, continue to see healthy levels of activity, especially for the ecommerce operators. These sectors account for over 30% of Mapletree Logistics Trust’s revenue.
For more details click here.
Parkway Life REIT Reported Stable Performance Amidst COVID-19 Outbreak in 1Q20
On 22 April, Parkway Life REIT reported its DPU in 1QFY20 (ended 31 Mar) grew by 1.4% to 3.32 Singapore cents, from 3.28 Singapore cents in 1QFY19. Gross revenue rose 5.2% year-on-year to S$29.9 million in 1Q 2020. Growth was largely attributed to additional revenue contribution from the three Japan properties acquired in 4QFY19, upward revision of the minimum guaranteed rent for Singapore hospitals by 1.61% as well as the appreciation of Japanese Yen (“JPY”). The Group also noted it is setting aside S$1.7 million to provide targeted assistance and support measures for affected tenants as needed. As part of Parkway Life REIT’s ongoing efforts to strengthen its balance sheet through proactive debt management, the Group successfully secured a six-year up to S$82.0 million committed loan facility during the quarter.
For more details click here.
Singapore Focused S-REITs Average 10 year Annualised Total Returns of 7.4%
The 22 REITs that report more than a third of their revenue to Singapore are tabled below. While the 22 trusts have averaged a 20.8% decline in the 2020 year-to-date, the 14 trusts that have been listed for the full duration of 10 years have averaged annualised total returns of 7.4% for those 10 years. The 22 stocks have also been recipient of S$161 million in net institutional inflow in the 2020 year to 27 April, while overall, S-REITs have seen a combined S$26 million in net institutional outflow over the period.
| REIT & Stapled Trust with 1/3 revenue in Singapore | SGX Code |
Mkt Cap S$M |
Net Insti Inflow YTD S$M |
Total Return YTD % |
Total Return 31 Dec 19 - 23 Mar 20 % |
Total Return 23 Mar 20 - 27 Apr 20 % |
10-Year Annualised Total Return % |
|---|---|---|---|---|---|---|---|
| KEPPEL DC REIT | AJBU | 4,115 | 67 | 22.2 | -4.0 | 27.3 | N/A |
| MAPLETREE LOGISTICS TRUST | M44U | 6,840 | 68 | 4.2 | -28.2 | 45.2 | 14.5 |
| PARKWAYLIFE REAL ESTATE | C2PU | 2,009 | 0 | 0.9 | -16.4 | 20.7 | 15.2 |
| ASCENDAS REAL ESTATE INV TRT | A17U | 10,203 | 227 | -4.0 | -22.1 | 23.1 | 10.5 |
| MAPLETREE INDUSTRIAL TRUST | ME8U | 5,370 | 63 | -5.0 | -25.6 | 27.7 | N/A |
| KEPPEL REIT | K71U | 3,650 | 30 | -11.9 | -33.9 | 33.3 | 6.1 |
| AIMS APAC REIT | O5RU | 820 | 6 | -17.5 | -33.8 | 24.7 | 9.9 |
| FRASERS COMMERCIAL TRUST | ND8U | 1,189 | 12 | -20.5 | -41.3 | 35.4 | 13.1 |
| MAPLETREE COMMERCIAL TRUST | N2IU | 5,987 | -41 | -23.7 | -31.7 | 11.7 | N/A |
| CAPITALAND COMMERCIAL TRUST | C61U | 5,716 | 30 | -24.2 | -29.4 | 7.2 | 8.2 |
| CACHE LOGISTICS TRUST | K2LU | 558 | -4 | -26.6 | -48.7 | 43.1 | 1.7 |
| SPH REIT | SK6U | 2,151 | -18 | -26.8 | -33.2 | 9.5 | N/A |
| SOILBUILD BUSINESS SPACE REIT | SV3U | 461 | 3 | -26.9 | -53.0 | 55.6 | N/A |
| FRASERS CENTREPOINT TRUST | J69U | 2,239 | -2 | -28.1 | -34.6 | 9.9 | 9.7 |
| CAPITALAND MALL TRUST | C38U | 6,347 | -94 | -29.2 | -33.7 | 6.8 | 4.1 |
| SUNTEC REIT | T82U | 3,605 | -42 | -29.5 | -38.9 | 15.3 | 5.3 |
| SABANA SHARIAH COMP IND REIT | M1GU | 332 | 1 | -30.4 | -48.1 | 34.0 | N/A |
| OUE COMMERCIAL REIT | TS0U | 2,076 | -14 | -30.4 | -46.7 | 30.5 | N/A |
| FAR EAST HOSPITALITY TRUST* | Q5T | 953 | -14 | -32.8 | -47.9 | 28.9 | N/A |
| STARHILL GLOBAL REIT | P40U | 1,028 | -20 | -34.1 | -45.4 | 20.5 | 3.5 |
| ESR-REIT | J91U | 1,104 | -21 | -39.6 | -54.0 | 31.3 | 3.0 |
| CDL HOSPITALITY TRUSTS* | J85 | 1,092 | -75 | -42.7 | -56.4 | 31.4 | -0.9 |
| Average | -20.8 | -36.7 | 26.1 | 7.4 |
Source: SGX StockFacts, Bloomberg, Thomson Reuters (Data as of 27 April 2020).
Note this is based on revenue segmented to Singapore in the last FY.
The broader S-REIT performances are tabled below, with the table sort by the S-REITs with the highest average daily turnover in the 2020 year to 27 April.
| All S-REITs | SGX Code |
Mkt Cap S$M |
Net Insti Inflow YTD S$M |
Total Return YTD % |
Total Return 31 Dec 19 - 23 Mar 20 % |
Total Return 23 Mar 20 - 27 Apr 20 % |
10-Year Annualised Total Return % |
|---|---|---|---|---|---|---|---|
| ASCENDAS REAL ESTATE INV TRT | A17U | 10,203 | 227 | -4.0 | -22.1 | 23.1 | 10 |
| CAPITALAND MALL TRUST | C38U | 6,347 | -94 | -29.2 | -33.7 | 6.8 | 4 |
| MAPLETREE COMMERCIAL TRUST | N2IU | 5,987 | -41 | -23.7 | -31.7 | 11.7 | N/A |
| MAPLETREE LOGISTICS TRUST | M44U | 6,840 | 68 | 4.2 | -28.2 | 45.2 | 15 |
| CAPITALAND COMMERCIAL TRUST | C61U | 5,716 | 30 | -24.2 | -29.4 | 7.2 | 8 |
| MAPLETREE INDUSTRIAL TRUST | ME8U | 5,370 | 63 | -5.0 | -25.6 | 27.7 | N/A |
| SUNTEC REIT | T82U | 3,605 | -42 | -29.5 | -38.9 | 15.3 | 5 |
| KEPPEL DC REIT | AJBU | 4,115 | 67 | 22.2 | -4.0 | 27.3 | N/A |
| MAPLETREE NORTH ASIA COM TRUST | RW0U | 2,827 | -9 | -22.8 | -38.7 | 25.9 | N/A |
| FRASERS LOGISTICS & INDUSTRIAL | BUOU | 2,228 | 28 | -20.6 | -46.4 | 48.1 | N/A |
| KEPPEL REIT | K71U | 3,650 | 30 | -11.9 | -33.9 | 33.3 | 6 |
| ASCOTT RESIDENCE TRUST * | HMN | 2,565 | -35 | -35.6 | -46.8 | 21.2 | 4 |
| FRASERS CENTREPOINT TRUST | J69U | 2,239 | -2 | -28.1 | -34.6 | 9.9 | 10 |
| ESR-REIT | J91U | 1,104 | -21 | -39.6 | -54.0 | 31.3 | 3 |
| CDL HOSPITALITY TRUSTS * | J85 | 1,092 | -75 | -42.7 | -56.4 | 31.4 | -1 |
| MANULIFE US REIT | BTOU | 1,561 | -3 | -25.0 | -39.0 | 22.8 | N/A |
| CAPITALAND RETAIL CHINA TRUST | AU8U | 1,626 | -38 | -15.4 | -37.4 | 35.0 | 8 |
| CROMWELL EUROPEAN REIT | CNNU | 1,472 | 1 | -26.7 | -42.1 | 26.8 | N/A |
| LENDLEASE GLOBAL COMMERCIAL | JYEU | 643 | -50 | -40.0 | -41.6 | 2.8 | N/A |
| FRASERS COMMERCIAL TRUST | ND8U | 1,189 | 12 | -20.5 | -41.3 | 35.4 | 13 |
| SPH REIT | SK6U | 2,151 | -18 | -26.8 | -33.2 | 9.5 | N/A |
| SASSEUR REIT | CRPU | 851 | -22 | -18.1 | -35.4 | 26.8 | N/A |
| PARKWAYLIFE REIT | C2PU | 2,009 | 0 | 0.9 | -16.4 | 20.7 | 15 |
| ASCENDAS INDIA TRUST ** | CY6U | 1,398 | 6 | -21.0 | -35.3 | 22.0 | 9 |
| KEPPEL PACIFIC OAK US REIT | CMOU | 764 | -13 | -21.1 | -38.7 | 28.7 | N/A |
| AIMS APAC REIT | O5RU | 820 | 6 | -17.5 | -33.8 | 24.7 | 10 |
| PRIME US REIT | OXMU | 1,015 | -3 | -22.7 | -38.7 | 26.2 | N/A |
| FIRST REAL ESTATE INVT TRUST | AW9U | 624 | -18 | -19.9 | -41.0 | 35.7 | 9 |
| FAR EAST HOSPITALITY TRUST * | Q5T | 953 | -14 | -32.8 | -47.9 | 28.9 | N/A |
| STARHILL GLOBAL REIT | P40U | 1,028 | -20 | -34.1 | -45.4 | 20.5 | 4 |
| IREIT GLOBAL | UD1U | 415 | -4 | -17.2 | -47.2 | 56.6 | N/A |
| OUE COMMERCIAL REIT | TS0U | 2,076 | -14 | -30.4 | -46.7 | 30.5 | N/A |
| CACHE LOGISTICS TRUST | K2LU | 558 | -4 | -26.6 | -48.7 | 43.1 | 2 |
| EAGLE HOSPITALITY TRUST * | LIW | 170 | -9 | -73.5 | -72.7 | -2.6 | N/A |
| LIPPO MALLS INDONESIA RETAIL | D5IU | 416 | -9 | -35.4 | -51.7 | 34.0 | -2 |
| EC WORLD REIT | BWCU | 522 | -12 | -10.6 | -39.5 | 47.7 | N/A |
| ELITE COMMERCIAL REIT | MXNU | 389 | 3 | 0.0 | 0.0 | 28.7 | N/A |
| SOILBUILD BUSINESS SPACE REIT | SV3U | 461 | 3 | -26.9 | -53.0 | 55.6 | N/A |
| FRASERS HOSPITALITY TRUST * | ACV | 907 | -5 | -33.1 | -50.7 | 35.7 | N/A |
| SABANA SHARIAH COMP IND REIT | M1GU | 332 | 1 | -30.4 | -48.1 | 34.0 | N/A |
| UNITED HAMPSHIRE US REIT | ODBU | 437 | -2 | 0.0 | 0.0 | 29.5 | N/A |
| ARA US HOSPITALITY TRUST * | XZL | 342 | 5 | -45.7 | -58.0 | 29.4 | N/A |
| DASIN RETAIL TRUST ** | CEDU | 519 | 1 | -1.7 | -2.4 | 0.6 | N/A |
| BHG RETAIL REIT | BMGU | 311 | 0 | -8.2 | -33.8 | 38.6 | N/A |
| Average | -22.1 | -37.4 | 27.1 | 6.9 |
Source: SGX StockFacts, Bloomberg, Thomson Reuters (Data as of 27 April 2020)
* Stapled Trusts
** Business Trusts
