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.
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.
