SGX Market Updates

S-REIT Sector Raises S$4.5Bil In Secondary Fundraisings In 2020


PUBLISHED ON |

14 January 2021

  • 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. 



Funds Raised by S-REIT Sector Placements in 2020



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).







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