For the past 12 weeks, the 10 S-REITs recipient to the Sector’s highest net institutional inflows (proportionate to market capitalisation) included seven of the S-REIT Sector’s best performers over the period, including Keppel DC REIT which has been amongst the 25 strongest performing global REITs in the 2020 YTD.
These 10 S-REITs averaged a 6% total return from 9 June through to 28 August, whilst the remaining S-REITs averaged a 9% decline. The iEdge S-REIT Leaders Index generated a 3% decline over the 12 weeks, in-line with the global REIT market.
Sabana REIT saw the S-REITs’ highest proportionate net institutional inflows since 9 June. As the Manger reiterated on 28 Aug, the proposed ESR REIT merger offers opportunities for re-rating and for reducing the NAV discount in the long term as part of a larger, more liquid and scalable REIT, backed by a developer-sponsor.
Globally there are more than 800 stocks that make up the REIT Sector, with a combined market capitalisation of US$1.8 trillion (S$2.4 trillion). The FTSE EPRA/NAREIT Global REIT Index represents approximately two-thirds of the S$1.8 trillion combined market capitalisation and has generated a declined a 17% decline in the 2020 year to 28 August. Like most equity benchmarks, the Index formed its post-23 March high on 9 June which coincided with the beginnings of the second wave of COVID-19 across the United States.
Similarly, the iEdge S-REIT Leaders Index formed its post-23 March high on 9 June, and has since declined 3%. Over the 12 week period the S-REIT sector was recipient to S$147 million in net institutional outflows. A total of 13 trusts of the S-REIT Sector saw net institutional inflows over the 12 weeks. The 10 trusts with the highest net institutional inflows between 10 June to 28 June, proportionate to current market capitalisation included seven of the best performing REITs over the period. Together the 10 trusts generated an average gain of 6% over the 12 weeks, whilst the remaining REITs averaged a 9% decline.
Sabana REIT saw the S-REIT Sectors’ highest proportionate net institutional inflows since 9 June. As the Manger reiterated on 28 August (click here), the proposed ESR REIT merger offers opportunities for re-rating and for reducing the NAV discount in the long term as part of a larger, more liquid and scalable REIT, backed by a developer-sponsor.
The table below sorts the S-REIT Sector to the highest net institutional inflows between proportionate to current market capitalisation between 10 June and 28 August 2020.
| S-REIT Sector: REITS, Stapled Trusts and Business Trusts |
SGX Code |
Market Cap S$m |
10Jun-28Aug Net Institutional Flow / Mkt Cap |
9Jun-28Aug Total Return |
YTD Total Return |
|---|---|---|---|---|---|
| Sabana REIT | M1GU | 389.6 | 1.00% | -1% | -17% |
| Frasers Logistics & Commercial Trust | BUOU | 4607.8 | 0.60% | 14% | 13% |
| Ascendas REIT | A17U | 11983 | 0.50% | 3% | 15% |
| Mapletree Logistics Trust | M44U | 7850.6 | 0.40% | 8% | 22% |
| SPH REIT | SK6U | 2362.5 | 0.40% | -4% | -19% |
| Keppel Pacific Oak US REIT | CMOU | 920.7 | 0.40% | 4% | -1% |
| ARA LOGOS Logistics Trust | K2LU | 691.6 | 0.30% | 14% | -6% |
| Keppel DC REIT | AJBU | 4719.4 | 0.20% | 22% | 42% |
| CapitaLand Commercial Trust | C61U | 6333.5 | 0.10% | -10% | -14% |
| ParkwayLife REIT | C2PU | 2268.8 | 0.10% | 8% | 16% |
| CDL Hospitality Trusts | J85 | 1281 | 0.10% | -11% | -32% |
| Mapletree Industrial Trust | ME8U | 7138.6 | 0.00% | 9% | 21% |
| Ascott Residence Trust | HMN | 2747.3 | 0.00% | -19% | -30% |
| Far East Hospitality Trust | Q5T | 1057.5 | 0.00% | -1% | -24% |
| Frasers Hospitality Trust | ACV | 835.7 | 0.00% | -18% | -38% |
| Dasin Retail Trust ** | CEDU | 616.7 | 0.00% | -2% | 1% |
| BHG Retail REIT | BMGU | 295.5 | 0.00% | -9% | -13% |
| Mapletree North Asia Commercial Trust | RW0U | 3064.8 | -0.10% | -4% | -16% |
| IREIT Global | UD1U | 446.1 | -0.10% | -3% | -8% |
| OUE Commercial REIT | TS0U | 2030.5 | -0.20% | -7% | -30% |
| EC World REIT | BWCU | 550.7 | -0.20% | -3% | -4% |
| Elite Commercial REIT GBP | MXNU | 399 | -0.20% | -1% | N/A |
| Mapletree Commercial Trist | N2IU | 6395.9 | -0.30% | -10% | -18% |
| Frasers Centerpoint Trust | J69U | 2769.3 | -0.30% | -5% | -11% |
| Soilbuild Business Space REIT | SV3U | 519.9 | -0.40% | -1% | -16% |
| Keppel REIT | K71U | 3568.9 | -0.50% | -11% | -12% |
| Cromwell REIT EUR | CNNU | 1819.5 | -0.50% | 3% | -6% |
| ESR-REIT | J91U | 1361.5 | -0.50% | -8% | -24% |
| Lendlease REIT | JYEU | 749.9 | -0.50% | -8% | -28% |
| Prime US REIT USD | OXMU | 1119.3 | -0.60% | -5% | -12% |
| Sasseur REIT | CRPU | 919.1 | -0.60% | -1% | -8% |
| United Hampshire REIT USD | ODBU | 365.3 | -0.70% | -8% | N/A |
| Lippo Malls Indonesia Retail Trust | D5IU | 345.4 | -0.70% | -22% | -45% |
| ARA US Hospitality Trust USD | XZL | 273.7 | -0.70% | -24% | -57% |
| CapitaLand Mall Trust | C38U | 7011.3 | -0.80% | -14% | -21% |
| First REIT | AW9U | 430.4 | -0.80% | -23% | -43% |
| Ascendas India Trust ** | CY6U | 1514.7 | -0.90% | -10% | -12% |
| Manulife REIT USD | BTOU | 1588.6 | -1.00% | -9% | -21% |
| Suntec REIT | T82U | 3920.9 | -1.30% | -11% | -22% |
| Starhill Global REIT | P40U | 954.8 | -1.30% | -24% | -38% |
| AIMS APAC REIT | O5RU | 833.9 | -1.70% | -4% | -13% |
| CapitaLand Retail China Trust | AU8U | 1406.3 | -3.00% | -14% | -25% |
| Average | -5% | -14% |
** Business Trust.
Source: SGX, Bloomberg, Refinitiv (Data as of 28 August 2020).
Note: Table sort by highest net institutional buys to highest net institutional sells proportionate to current market capitalisation.
By comparison, the 10 trusts of the S-REIT sector that saw the highest net institutional inflow proportionate to market capitalisation following the major market lows of 23 March through to the post-low high of 9 June included First REIT, Ascendas REIT, Frasers Logistics & Commercial Trust, Mapletree Logistics Trust, Soilbuild Business Space REIT, Keppel REIT, EC World REIT, Keppel Pacific Oak US REIT, Ascott Residence Trust and SPH REIT. During that period, the 10 trusts averaged a 54% Total Return compared to the remaining trusts of the S-REIT Sector gaining 45%.
