During 2020, trusts that represent the S-REIT Sector raised S$3.0 billion in placements, while 5 trusts raised S$1.5 billion in rights issues. Ascendas REIT conducted the largest placement, with S$800 million raised, while Frasers Centrepoint Trust conducted the biggest rights issue with S$760 million raised.
At the end of 2020, the combined market capitalisation of the S-REIT Sector stood at S$107 billion, which like the end of 2019, represented 12% of the combined value of all Singapore-listed stocks, with the S-REIT Sector doubling its impact in the day-to-day turnover of Singapore-listed stocks.
The S-REIT Sector was recipient of S$1.2 billion in net retail inflows in 2020, after retail investors were net sellers of REITs over the first 2 months of the year. The 3 SGX-listed REITs ETFs that offer investors diversification into Singapore and regional REITs markets also saw net inflows of S$105 million.
On the first trading day of 2021, CapitaLand Retail China Trust announced the completion of the proposed acquisition of the company which holds the Ascendas Xinsu portfolio (click here for more).
Acquisitions and secondary fundraisings within the S-REIT Sector continued in 2020. During 2020, 9 of the 43 trusts that represent the S-REIT Sector raised funds through the placement of shares, which totalled S$3.0 billion, while 5 trusts raised S$1.5 billion in rights issues. Healthy balance sheets combined with extraordinarily low interest rates also saw a number of acquisitions that were not funded in the secondary market.
In the final quarter of 2020, acquisitions were either announced or completed by
- Keppel REIT (see here and here),
- Cromwell European REIT (see here and here),
- Ascendas REIT (see here and here),
- Mapletree Logistics Trust (see here , here and here),
- ParkwayLife REIT (see here),
- Suntec REIT (see here) ,
- Frasers Logistics and Commercial Trust (see here),
- Frasers Centrepoint Trust (see here),
- ARA Logos Logistics Trust (see here),
- Elite Commercial REIT (see here),
- AIMS APAC REIT (see here) and
- Lendlease Global Commercial REIT (see here).
REITs Maintained Relative Market Value and Comparative Turnover in 2020
By the end of 2020, the combined market capitalisation of the S-REIT Sector stood at S$107 billion, which like the end of 2019, represented 12% of the combined value of all stocks listed for trading on Singapore Exchange. The S-REIT Sector has grown at a an 11% Compound Annual Growth rate over the past 10 years.
Throughout the year the S-REIT Sector averaged day-to-day turnover of more than S$300 million, 24% of the combined day-to-day turnover of all stocks listed on the exchange, excluding security products such as ETFs. The 3 SGX-listed REITs ETFs that offer investors diversification into Singapore and regional REITs markets posted full year net inflow of S$105 million, recording a combined AUM of S$464 million in 2020. The Nikko AM-Straits Trading Asia ex Japan REIT ETF and Lion-Phillip S-REIT ETF were also among the top 5 most traded Singapore-listed ETFs in 2020 (click here for more).
The S-REIT Sector was recipient to S$1.2 billion in net retail inflows in 2020, with net institutional outflows of S$340 million. Retail investors turned to net buyers of the S-REIT Sector after February 2020, following net retail outflows of S$72 million in the first two months of 2020.
The 5 S-REITs with the highest net retail inflows for the entire 2020 year CapitaLand Integrated Commercial Trust, CapitaLand Retail China Trust, Ascendas REIT, Suntec REIT and Lendlease REIT. With a combined S$579 million of net retail inflows over the year, these 5 REITs averaged an 8.5% decline in total return over the 2020 year. Ascendas REIT generated a gain of 12.6% in the first three quarters of 2020 with S$89 million of retail outflow. The final quarter of 2020, saw Ascendas REIT decline 6.2% with net retail inflows of S$166 million.
For much of the year, Keppel DC REIT, Frasers Logistics & Commercial Trust, ParkwayLife REIT, Mapletree Logistic Trust and Mapletree Industrial Trust led the S-REIT Sector returns, with the 5 ending 2020 as the Sector’s best performers, averaging 23.5% total returns.
Meanwhile, First REIT, Lippo Malls Indonesia Retail Trust, ARA US Hospitality Trust, OUE Commercial REIT and Starhill Global REIT led the decliners, averaging 49.3% declines.
The table below details performances, with financials and valuation of S-REITs, sorted by market cap as of the end of 2020.
| S-REITs | SGX Code |
Market Cap S$m |
2020 Net Retail Flow S$m |
Dividend Yield % |
Debt To Assets % |
P/B (x) |
4Q20 Total Return % |
2020 Total Return % |
2021 YTD Total Return % |
|---|---|---|---|---|---|---|---|---|---|
| CapitaLand Integrated Commercial Trust | C38U | 14,624 | 244 | 5 | 40 | 1.1 | 14 | -8 | 5 |
| Ascendas REIT | A17U | 12,672 | 78 | 5 | 35 | 1.4 | -6 | 6 | 2 |
| Mapletree Logistics Trust | M44U | 8,389 | -6 | 4 | 40 | 1.7 | 0 | 20 | 1 |
| Mapletree Commercial Trust | N2IU | 7,161 | 15 | 4 | 34 | 1.2 | 12 | -8 | 1 |
| Mapletree Industrial Trust | ME8U | 6,723 | 61 | 4 | 38 | 1.7 | -9 | 16 | -1 |
| Frasers Industrial & Commercial Trust | BUOU | 5,068 | -53 | 5 | 37 | 1.3 | 4 | 21 | 5 |
| Keppel DC REIT | AJBU | 4,507 | 28 | 3 | 35 | 2.4 | -3 | 38 | -2 |
| Frasers Centrepoint Trust | J69U | 4,364 | 47 | 4 | 36 | 1.1 | 5 | -9 | 4 |
| Suntec REIT | T82U | 4,238 | 70 | 5 | 42 | 0.7 | 4 | -15 | 1 |
| Keppel REIT | K71U | 3,851 | -8 | 4 | 35 | 0.8 | 5 | -6 | 1 |
| Ascott Residence Trust * | HMN | 3,357 | 32 | 5 | 35 | 1.0 | 21 | -15 | 0 |
| Mapletree North Asia Commercial Trust | RW0U | 3,314 | 59 | 8 | 40 | 0.7 | 7 | -11 | -1 |
| ParkwayLife REIT | C2PU | 2,408 | 8 | 3 | 39 | 2.0 | -6 | 21 | 3 |
| SPH REIT | SK6U | 2,345 | 12 | 3 | 31 | 0.8 | -4 | -20 | 0 |
| CapitaLand Retail China Trust | AU8U | 2,172 | 122 | 5 | 35 | 0.9 | 28 | -7 | 3 |
| OUE Commercial REIT | TS0U | 2,060 | 27 | 5 | 40 | 0.6 | 8 | -29 | -1 |
| Cromwell European REIT | CNNU | 2,003 | 19 | 8 | 36 | 0.9 | 0 | 3 | 1 |
| Ascendas India Trust ** | CY6U | 1,677 | 13 | 7 | 30 | 1.2 | 1 | -8 | 7 |
| Manulife US REIT | BTOU | 1,549 | 27 | 8 | 40 | 1.0 | -3 | -23 | 0 |
| CDL Hospitality Trusts * | J85 | 1,539 | 31 | 5 | 37 | 0.8 | 21 | -18 | -1 |
| ESR-REIT | J91U | 1,395 | 11 | 7 | 42 | 1.0 | 5 | -20 | -1 |
| Far East Hospitality Trust * | Q5T | 1,196 | 8 | 5 | 40 | 0.7 | 13 | -13 | -2 |
| Starhill Global REIT | P40U | 1,144 | 46 | 6 | 39 | 0.6 | 15 | -28 | 3 |
| Prime US REIT | OXMU | 1,119 | 23 | 7 | 33 | 0.9 | -7 | -14 | 2 |
| Sasseur REIT | CRPU | 1,013 | 36 | 8 | 28 | 0.9 | 9 | 0 | 2 |
| Frasers Hospitality Trust * | ACV | 1,011 | 8 | 3 | 38 | 0.8 | 25 | -24 | 0 |
| Lendlease Commercial REIT | JYEU | 936 | 66 | 4 | 36 | 0.9 | 7 | -18 | 9 |
| AIMS APAC REIT | O5RU | 897 | 20 | 7 | 34 | 0.9 | 6 | -6 | 2 |
| Keppel Pacific Oak US REIT | CMOU | 873 | 14 | 9 | 38 | 0.9 | -8 | -8 | 2 |
| ARA LOGOS Logistics Trust | K2LU | 791 | 28 | 9 | 41 | 1.0 | 1 | -7 | 10 |
| Soilbuild Business Space REIT | SV3U | 681 | 5 | 7 | 37 | 0.9 | 10 | 12 | 0 |
| IREIT Global | UD1U | 609 | 3 | 8 | 39 | 0.7 | 6 | -5 | 0 |
| Dasin Retail Trust ** | CEDU | 591 | 1 | 7 | 39 | 0.6 | -2 | -1 | -3 |
| EC World REIT | BWCU | 580 | 11 | 8 | 38 | 0.8 | 7 | 4 | 1 |
| United Hampshire US REIT | ODBU | 420 | 9 | 7 | 36 | 0.9 | 14 | N/A | -3 |
| Elite Commercial REIT | MXNU | 399 | -1 | 7 | 33 | 1.1 | 6 | N/A | 0 |
| ARA US Hospitality Trust * | XZL | 398 | 3 | 9 | 43 | 0.6 | 42 | -48 | 21 |
| Sabana REIT | M1GU | 379 | 2 | 7 | 33 | 0.7 | -3 | -21 | 1 |
| BHG Retail REIT | BMGU | 278 | -15 | 5 | 36 | 0.7 | 0 | -16 | -1 |
| First REIT | AW9U | 198 | 40 | 21 | 35 | 0.2 | -45 | -75 | 4 |
| Lippo Malls Indonesia Retail Trust | D5IU | 180 | 15 | 13 | 43 | 0.4 | -12 | -67 | -3 |
| Average | 6 | 37 | 1.0 | 5 | -10 | 2 | |||
| Median | 6 | 37 | 0.9 | 5 | -8 | 1 |
* Stapled Trust
** Business Trust
Source: SREITs & Property Trust Chartbook, Refinitiv and Bloomberg (Data as of 12 January 2021).
