SGX Market Updates

Mapletree Industrial Trust, The 6th REIT to Join STI on 22 June


PUBLISHED ON |

08 June 2020

  • Effective the June 22 open, Mapletree Industrial Trust will join the STI with an indicative index weight of 1.6%. This will bring the total of number of REITs in the STI to six, with an indicative combined weighting near 12.5%.

  • Since listing in October 2010, Mapletree Industrial Trust has generated average annualised total returns of 19% and grown its portfolio from 70 properties valued at S$2.1 billion, to 114 properties valued at S$5.9 billion (including joint ventures).

  • The STI Reserve List, which has averaged 3% total returns in the 2020 year to 5 June on S$122 million on net institutional inflow, will include Keppel DC REIT, Suntec REIT, NetLink NBN Trust, Frasers Logistics & Commercial Trust and Keppel REIT.




Last week, the Straits Times Index (“STI”) was the strongest benchmark across Asia Pacific, generating a total return of 9.6%, bringing its 2020 year-to-date decline in total return to 13.2%. After the Thursday close, FTSE Russell announced that as part of the quarterly rebalancing, Mapletree Industrial Trust was added to the STI, with Singapore Press Holdings (“SPH”) omitted.

Quarterly STI reviews are a highly competitive process with the Index maintaining a fixed number of 30 constituents. The process involves ranking stocks of the broader FTSE ST All-Share Index by market capitalisation and a stock will be inserted into the STI at the quarterly review if it rises to 20th position or above when the eligible securities are ranked by full market capitalisation or will be deleted at the quarterly review if it falls to 41st position or below.

Mapletree Industrial Trust’s 19.4% Annualised Total Returns since IPO

This year, Mapletree Industrial Trust has generated a total return of 8.2% through to 5 June, on S$33.5 million of net institutional inflow. This has brought Mapletree Industrial Trust’s annualised total returns since listing in October 2010 to 19.4% and has seen its market capitalisation rise from approximately S$1.7 billion on its debut, to S$6.0 billion at present.

Since the end of 2010, the S-REIT Sector total market capitalisation has grown from S$35 billion to approximately S$100 billion as of 5 June 2020. The same period of time has seen the number of REITs in the STI rise from one to six effective 22 June.

SPH has also been a part of the significant expansion of the S-REIT Sector over the past 10 years, with the spin-off of Paragon and The Clementi Mall into SPH REIT in July 2013. From 23 July 2013, through to 5 June 2020, SPH REIT has since delivered investors 5.1% average annualised total returns. SPH REIT currently maintains a market capitalisation of S$2.5 billion, in comparison to SPH’s S$2.2 billion. As noted in its FY19 Annual Report (click here) as of 10 October 2019, SPH maintained a 70% deemed interest (approximately S$1.75 billion on the 5 June close) in SPH REIT.


As detailed in the table below Mapletree Industrial Trust will join the STI on the 22 June open with an indicative index weight of 1.6%. This will bring the total of number of REITs in the STI to 6, with an indicative combined weighting close to 12.5%.

STI Stocks SGX Code 31 March 2020
Index Weight
New Indicative
Weight for
22 June,
based on
31 March 2020
data
Sector/Industry
Ascendas REIT A17U 3.61% 3.60% REITs
CapitaLand Commercial Trust C61U 1.81% 1.80% REITs
CapitaLand C31 3.09% 3.08% Financials
CapitaLand Mall Trust C38U 1.87% 1.86% REITs
City Developments C09 1.47% 1.46% Financials
ComfortDelGro C52 1.36% 1.35% Consumer Services
Dairy Farm International D01 0.86% 0.86% Consumer Services
DBS Group D05 14.52% 14.47% Banks
Genting Singapore G13 1.74% 1.73% Consumer Services
Hongkong Land H78 2.69% 2.68% Financials
Jardine C&C C07 0.85% 0.85% Consumer Services
Jardine Matheson J36 6.49% 6.47% Industrials
Jarding Strategic J37 2.50% 2.49% Industrials
Keppel Corp BN4 3.29% 3.28% Oil & Gas
Mapletree Commercial Trust N2IU 1.74% 1.73% REITs
Mapletree Logistics Trust M44U 1.75% 1.74% REITs
OCBC Bank O39 12.93% 12.88% Banks
SATS S58 0.87% 0.87% Industrials
Sembcorp Industries U96 0.61% 0.61% Utilities
Singapore Exchange S68 3.28% 3.27% Financials
Singapore Airlines C6L 1.27% 1.27% Consumer Services
SingTel Z74 8.21% 8.18% Telecommunications
ST Engineering S63 2.07% 2.06%
Thai Beverage Y92 2.58% 2.57% Consumer Goods
UOB U11 10.86% 10.82% Banks
UOL U14 1.41% 1.40% Real Estate
Venture Corp V03 1.53% 1.52% Industrials
Wilmar International F34 2.73% 2.72% Consumer Goods
YZJ Shipbuilding BS6 0.76% 0.76% Industrials
SPH T39 1.27% - Consumer Services
Mapletree Industrial Trust ME8U - 1.61% REITs

Source: FTSE Russell (www.ftse.com/products/indices/SGX-ST), SGX My Gateway, SGX StockFacts.
Note weights above are only indicative and based on relative weightings on 31 March 2020 with Mapletree Industrial Trust free float on 31 March provided in the relevant FTSE ST Singapore Shariah Index. 



STI Reserve List

Effective 22 June, the STI Reserve List will include Keppel DC REIT, Suntec REIT, NetLink NBN Trust, Frasers Logistics & Commercial Trust and Keppel REIT. Four of the five STI Reserve List stocks have been recipient of net institutional inflows in the 2020 year to June 5 as illustrated below. The five stocks have also averaged 3% total returns in the 2020 year to 5 June.


STI Reserve List


The STI Reserve List is used in the event that one or more of the STI constituents are deleted during the period up to the next quarterly review. As detailed in the STI Ground Rules, when a company is going to be removed from the STI, the vacancy will be filled by selecting the highest ranking security by full market value in the Reserve List as at the close of the index calculation two days prior to the deletion.







This article is provided by SGX My Gateway.



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