SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

Equity Bottom-Up

Frasers Logistics & Commercial Trust / Equity Bottom-Up

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 <div class='content-caption'>REIT Watch - S-Reits which took part in the 2021 GRESB real estate assessment</div>
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Eighteen S-Reits out of over 1,500 property companies, Reits, funds and developers participated in the 2021  GRESB Real Estate Assessment. According to GRESB, the assessment is an investor-driven global ESG  benchmark and reporting framework for listed property companies, private property funds, developers  and investors that invest directly in real estate. 

The assessment covers 3 components: management components such as strategies and policies; performance components such as greenhouse gas (GHG) emissions and energy consumption;  development components such as a building’s design. 

Each of the components has a score and is factored into the overall GRESB score and rating. The GRESB  rating is relative to the universe of participating entities. Entities in the top/bottom quintile will have a  5-star/1-star rating respectively. Only 20 per cent of entities in each year receive the 5-star rating.

Six S-Reits obtained the 5-star GRESB rating in 2021 – CapitaLand Integrated Commercial Trust (CICT), Frasers Centrepoint Trust (FCT), Frasers Logistics &amp; Commercial Trust (FLCT), Lendlease Global  Commercial Reit (LReit), Manulife US Reit (MUST) and Suntec Reit. 

CICT’s sustainability initiatives towards its 2030 targets include a pilot with Tampines Mall as one of the  8 buildings to be part of Singapore’s first brownfield distribution district cooling (DDC) network pilot  by SP Group to allow for more efficient chiller systems operations.  

FCT’s malls, Century Square and Tampines 1, are also part of the DDC network pilot, which is targeted to  be operational in 2025. In line with Frasers Property’s goal to be net zero carbon by 2050, a network of  36 electric vehicle public charging points will be installed across 12 Frasers malls.

FLCT has committed to achieve a net zero carbon status by 2030, in line with its sponsor Frasers  Property’s goal. The trust also aims to achieve green certification for 80 per cent of its portfolio by 2024. 

LReit, in line with Lendlease Group’s Mission Zero targets, aims to achieve net zero carbon (Scope 1 &amp;  2) by 2025 and absolute zero (including Scope 3) by 2040. Some of its reference targets in FY22 include  a 20 per cent reduction in energy and GHG emissions and 11 per cent recycling rate in waste. 

MUST in 2021 announced its alignment to its sponsor’s net zero and 80 per cent GHG emissions  reduction target by 2050. About 90 per cent of its properties are green certified and the REIT has noted  a reduction in GHG intensity and energy intensity by 9.3 per cent and 5.8 per cent year-on-year,  respectively. 

Suntec REIT in FY21 achieved a 24.6 per cent and 44.3 reduction in energy and water intensities, respectively, from FY19 levels on lower usage during the pandemic and notes that it is on track to  achieve its 2024 targets – to reduce energy intensity by 3 per cent in 2024 from FY19 levels, and to  maintain water intensity in FY24 from FY19 levels. 

REIT Watch is a weekly column on The Business Times, <a href="https://www.businesstimes.com.sg/companies-markets/s-reits-which-took-part-in-the-2021-gresb-real-estate-assessment">read </a>the original version
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    REIT Watch - S-Reits which took part in the 2021 GRESB real estate assessment


Eighteen S-Reits out of over 1,500 property companies, Reits, funds and developers participated in the 2021  GRESB Real Estate Assessment. According to GRESB, the assessment is an investor-driven global ESG  benchmark and reporting framework for listed property companies, private property funds, developers  and investors that invest directly in real estate. 

The assessment covers 3 components: management components such as strategies and policies; performance components such as greenhouse gas (GHG) emissions and energy consumption;  development components such as a building’s design. 

Each of the components has a score and is factored into the overall GRESB score and rating. The GRESB  rating is relative to the universe of participating entities. Entities in the top/bottom quintile will have a  5-star/1-star rating respectively. Only 20 per cent of entities in each year receive the 5-star rating.

Six S-Reits obtained the 5-star GRESB rating in 2021 – CapitaLand Integrated Commercial Trust (CICT), Frasers Centrepoint Trust (FCT), Frasers Logistics &amp; Commercial Trust (FLCT), Lendlease Global  Commercial Reit (LReit), Manulife US Reit (MUST) and Suntec Reit. 

CICT’s sustainability initiatives towards its 2030 targets include a pilot with Tampines Mall as one of the  8 buildings to be part of Singapore’s first brownfield distribution district cooling (DDC) network pilot  by SP Group to allow for more efficient chiller systems operations.  

FCT’s malls, Century Square and Tampines 1, are also part of the DDC network pilot, which is targeted to  be operational in 2025. In line with Frasers Property’s goal to be net zero carbon by 2050, a network of  36 electric vehicle public charging points will be installed across 12 Frasers malls.

FLCT has committed to achieve a net zero carbon status by 2030, in line with its sponsor Frasers  Property’s goal. The trust also aims to achieve green certification for 80 per cent of its portfolio by 2024. 

LReit, in line with Lendlease Group’s Mission Zero targets, aims to achieve net zero carbon (Scope 1 &amp;  2) by 2025 and absolute zero (including Scope 3) by 2040. Some of its reference targets in FY22 include  a 20 per cent reduction in energy and GHG emissions and 11 per cent recycling rate in waste. 

MUST in 2021 announced its alignment to its sponsor’s net zero and 80 per cent GHG emissions  reduction target by 2050. About 90 per cent of its properties are green certified and the REIT has noted  a reduction in GHG intensity and energy intensity by 9.3 per cent and 5.8 per cent year-on-year,  respectively. 

Suntec REIT in FY21 achieved a 24.6 per cent and 44.3 reduction in energy and water intensities, respectively, from FY19 levels on lower usage during the pandemic and notes that it is on track to  achieve its 2024 targets – to reduce energy intensity by 3 per cent in 2024 from FY19 levels, and to  maintain water intensity in FY24 from FY19 levels. 

REIT Watch is a weekly column on The Business Times, read the original version



REIT Watch - S-Reits which took part in the 2021 GRESB real estate assessment

Research from SooChow CSSD Capital Markets (Asia), SCCM Asia Research

SCCM Asia Research

Research from SooChow CSSD Capital Markets (Asia)

Headquartered in Singapore, SooChow CSSD Capital Markets (Asia) is an investment bank focusing on emerging growth companies across Asia, providing a full suite of investment banking services, including corporate finance, mergers and acquisitions advisory, equity capital markets, institutional equities sales and trading and equities research.

SooChow CSSD Capital Markets (Asia)

Thematic (Sector/Industry)

<ul><li><a href="https://www.smartkarma.com/entities/mapletree-logistics-trust" target="_blank" data-smartkarma-citation="entities:16035" rel="noopener">Mapletree Logistics Trust (MLT SP)</a> 1Q23 DPU +5.0% YoY; Robust DPU growth and reversions number </li><li><a href="https://www.smartkarma.com/entities/mapletree-north-asia-commercial-trust" target="_blank" data-smartkarma-citation="entities:5127" rel="noopener">Mapletree North Asia Commercial Trust (MAGIC SP)</a> 1Q23 Business Updates – FW recovery continues</li><li><a href="https://www.smartkarma.com/entities/capitaland-integrated-commercial-trust" target="_blank" data-smartkarma-citation="entities:105" rel="noopener">Capitaland Integrated Commercial Trust (CICT SP)</a> , <a href="https://www.smartkarma.com/entities/link-reit" target="_blank" data-smartkarma-citation="entities:872" rel="noopener">Link REIT (823 HK)</a>, <a href="https://www.smartkarma.com/entities/frasers-property-ltd" target="_blank" data-smartkarma-citation="entities:1670" rel="noopener">Frasers Property Ltd (FPL SP)</a> competing for NTUC's S$4bn shopping malls</li></ul>

Mapletree Logistics Trust (MLT SP) 1Q23 DPU +5.0% YoY; Robust DPU growth and reversions number Mapletree North Asia Commercial Trust (MAGIC SP) 1Q23 Business Updates – FW recovery continuesCapitaland Integrated Commercial Trust (CICT SP) , Link REIT (823 HK), Frasers Property Ltd (FPL SP) competing for NTUC's S$4bn shopping malls

ASEAN Builder's Scoop (22Jul22) - MLT Robust Growth and Reversions

Jardine Cycle & Carriage / Equity Bottom-Up

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 <div class='content-caption'>Share Buybacks</div>
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FOR the 5 trading sessions that spanned Jul 1 to 7, the Straits Times Index (STI) gained 0.9 per cent, with the FTSE China A50 Index declining 0.8 per cent, the Hang Seng Index declining 0.2 per cent and the FTSE Bursa Malaysia KLCI declining 1.4 per cent.

Overall, institutions were net sellers of Singapore stocks over the 5 sessions with S$58 million of net outflow, following S$194 million of net outflow for the preceding 5 sessions.

CapitaLand Integrated Commercial Trust, OCBC, Keppel Reit, Jardine Cycle &amp; Carriage and Hongkong Land Holdings led the net institutional outflows for the 5 sessions through to Jul 7.

Meanwhile, DBS, Singtel, Wilmar International, Mapletree Logistics Trust and Keppel Corporation led the net institutional inflows for the 5 sessions through to Jul 7.

 

Share buybacks

There were 16 primary-listed stocks conducting share buybacks over the 5 sessions ended Jul 7, with a total consideration of S$4.4 million, down from the S$27.3 million previous week’s consideration tally.

OUE and Hong Fok Corporation led the consideration tally, buying back shares at average prices of S$1.32, and 98.0 Singapore cents respectively.

 

Director and substantial shareholder transactions

The 5 trading sessions saw close to 80 changes to director interests and substantial shareholdings filed for more than 30 primary-listed stocks. This included 25 company director acquisitions with 4 disposals filed, while substantial shareholders filed 13 acquisitions and 2 disposals.

 

AEM Holdings

The Employees Provident Fund Board’s (EPF) deemed substantial shareholding in AEM Holdings crossed above the 7.00 per cent threshold on Jul 4. The EPF’s interest in AEM Holdings crossed back above the 5.00 per cent substantial shareholder threshold on Jun 9, then above the 6.00 per cent threshold on Jun 21.

 

Olam Group

On Jul 4, Olam Group executive director, co-founder and group chief executive officer (CEO) Sunny Verghese acquired 500,000 shares of the company at an average price of S$1.54 per share, with a consideration of S$771,100, increasing his direct interest in Olam Group from 4.31 per cent to 4.32 per cent.

His preceding acquisitions between May 27 and Jun 2 saw him acquire 2 million shares at an average price of S$1.52 per share.

On Jul 1, the Olam Group announced the International Finance Corporation (IFC) agreed to provide a loan of up to US$200 million to Olam Agri.

The loan will be used to finance the purchase of wheat, maize and soya from Canada, Germany, Latvia, Lithuania and the United States for delivery to the company’s processing operations, and customers in developing countries that rely heavily on imports of these staple foods. These include Bangladesh, Cameroon, Chad, Egypt, Ghana, India, Indonesia, Nigeria, Pakistan, Senegal, Thailand and Turkey.

Olam Agri is the food, feed and fibre agribusiness subsidiary of Olam Group and the project is part of IFC’s global efforts to address food insecurity, especially for poor and vulnerable populations that adversely impacted by food inflation.

 

Audience Analytics

On Jun 30, Audience Analytics executive director Ryan Ooi Keim Fung acquired 1.92 million shares of the company in a married deal at 25.0 cents per share. With a consideration of S$480,000, this took his direct interest in the Catalist-listed company to 1.14 per cent.

As a non-executive director of Bain Equity, the controlling shareholder of Audience Analytics, Ooi also maintains a deemed interest of 84.54 per cent in the company, taking his total interest to 85.68 per cent.

On Jun 27, the company announced it had entered into an agreement to purchase the intellectual property (IP) rights for the prestigious Golden Bull Award, which complements the company’s existing award programme’s IP portfolio that includes the notable HR Asia Best Companies to Work for in Asia and SME100.

 

EC World Reit

On Jul 1, EC World Asset Management’s executive director and CEO Goh Toh Sim acquired 231,100 units of EC World Reit (ECW) at an average price of 42.1 cents per unit. With a consideration of S$97,406, this increased his direct stake in ECW from 0.10 per cent to 0.13 per cent.

Goh has over 26 years of experience in the management of industrial parks, real estate development and business management in China. Prior to joining the manager, he was the chief representative in China for Keppel Corporation where he was responsible for government relations and business development.

On Jul 6, ECW announced it had extended the maturity of outstanding onshore and offshore facilities to Apr 30, 2023, with the refinancing exercise ongoing. With the announcement, Goh added that unlike the residential sector in China, which is still experiencing headwinds, the e-commerce and logistics sectors in China are resilient.

He added that ECW’s assets are mature e-commerce and logistics assets that are generating stable returns for investors in terms of regular quarterly distributions since its initial public offering (IPO).

 

UMS Holdings

On Jul 5, UMS Holdings executive director Stanley Loh Meng Chong acquired 75,000 shares of the company at S$1.09 per share. With a consideration of S$81,750, this increased his direct interest in the precision engineering group from 0.09 per cent to 0.11 per cent. Loh joined the company in September 2008 as group financial controller, and then appointed as an executive director in June 2010.

Back on May 10, UMS Holdings reported a record-breaking profitable performance for Q1 2022, surpassing S$20 million in quarterly profit for the first time.

Geographically, the group’s key markets except for Taiwan grew significantly in Q1, with Malaysia sales growing 240 per cent year on year, driven by higher material distribution sales and consolidation of JEP Holdings tooling distribution revenue.

Singapore sales also surged 75 per cent due to higher sales for semiconductor integrated systems, increased components for new equipment as well as consolidation of JEP Holding’s semiconductor component business.

UMS Holdings is expected to report its Q2 results in mid-August.

 

A-Sonic Aerospace

On Jun 30, A-Sonic Aerospace CEO Janet LC Tan acquired 81,000 shares of the company for a consideration of S$55,591, at an average price of 68.6 cents per share. This took her direct interest in the company from 60.01 per cent to 60.12 per cent. She has gradually increased her total interest in A-Sonic Aerospace from 53.35 per cent at the end of 2018.

Tan has over 20 years of extensive experience in the aviation industry, with her responsibilities at A-Sonic Aerospace including the setting of the overall long-term business direction, developing business strategies, and implementing growth strategies for the A-Sonic Aerospace and its subsidiaries.

Effective Jun 30, A-Sonic Aerospace was removed from the SGX-ST Watch-List with its average daily market capitalisation exceeding the required S$40 million over the 6 months since Nov 12, 2021.

 

Uni-Asia Group

Between Jul 4 and 7, Uni-Asia Group executive chair Michio Tanamoto acquired 250,000 shares of the company at an average price of S$1.02 per share. With a consideration of S$254,500, this took his direct interest from 3.56 per cent to 3.88 per cent. Appointed the executive chair of the group in April 2020, Tanamoto is one of the founders who established the company in 1997 and has been a director since then.

On Jul 5, Uni-Asia Group executive director Yukihiro Toda also acquired 30,000 shares of the company at an average price of S$1.06 per share. With a consideration of S$31,749, this increased his deemed interest from 0.12 per cent to 0.16 per cent. Toda joined the group in 1998, and has been chief investment officer of Uni-Asia Capital (Japan) since February 2000, responsible for overall real estate fund management business and property investment business in Japan.

 

Challenger Technologies

Between Jun 29 and Jul 4, Digileap Capital acquired 64,800 shares of Challenger Technologies at 56.0 cents per share. With a consideration of S$36,288, this increased the deemed interest of non-executive non-independent director Keith Tan Keng Soon in Challenger Technologies from 15.08 per cent to 15.10 per cent. This followed his acquisition of 104,400 shares also at 56.0 cents per share on Jun 27.

 

The Straits Trading Company

Between Jul 1 and 6, The Straits Trading Company independent and non-executive director Chua Tian Chu acquired 10,000 shares of the company at an average price of S$2.84 per share. This followed his acquisitions of 5,000 shares at S$2.92 per share on Jun 17, 7,000 shares at S$3.00 per share on Jun 13, and 5,000 shares at S$3.05 per share on Mar 8.

 

Inside Insights is a weekly column on The Business Times,<a href="https://www.businesstimes.com.sg/companies-markets/sunny-verghese-ups-olam-stake-oue-hong-fok-lead-buybacks"> read </a>the original version.
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    Share Buybacks


FOR the 5 trading sessions that spanned Jul 1 to 7, the Straits Times Index (STI) gained 0.9 per cent, with the FTSE China A50 Index declining 0.8 per cent, the Hang Seng Index declining 0.2 per cent and the FTSE Bursa Malaysia KLCI declining 1.4 per cent.

Overall, institutions were net sellers of Singapore stocks over the 5 sessions with S$58 million of net outflow, following S$194 million of net outflow for the preceding 5 sessions.

CapitaLand Integrated Commercial Trust, OCBC, Keppel Reit, Jardine Cycle &amp; Carriage and Hongkong Land Holdings led the net institutional outflows for the 5 sessions through to Jul 7.

Meanwhile, DBS, Singtel, Wilmar International, Mapletree Logistics Trust and Keppel Corporation led the net institutional inflows for the 5 sessions through to Jul 7.

 

Share buybacks

There were 16 primary-listed stocks conducting share buybacks over the 5 sessions ended Jul 7, with a total consideration of S$4.4 million, down from the S$27.3 million previous week’s consideration tally.

OUE and Hong Fok Corporation led the consideration tally, buying back shares at average prices of S$1.32, and 98.0 Singapore cents respectively.

 

Director and substantial shareholder transactions

The 5 trading sessions saw close to 80 changes to director interests and substantial shareholdings filed for more than 30 primary-listed stocks. This included 25 company director acquisitions with 4 disposals filed, while substantial shareholders filed 13 acquisitions and 2 disposals.

 

AEM Holdings

The Employees Provident Fund Board’s (EPF) deemed substantial shareholding in AEM Holdings crossed above the 7.00 per cent threshold on Jul 4. The EPF’s interest in AEM Holdings crossed back above the 5.00 per cent substantial shareholder threshold on Jun 9, then above the 6.00 per cent threshold on Jun 21.

 

Olam Group

On Jul 4, Olam Group executive director, co-founder and group chief executive officer (CEO) Sunny Verghese acquired 500,000 shares of the company at an average price of S$1.54 per share, with a consideration of S$771,100, increasing his direct interest in Olam Group from 4.31 per cent to 4.32 per cent.

His preceding acquisitions between May 27 and Jun 2 saw him acquire 2 million shares at an average price of S$1.52 per share.

On Jul 1, the Olam Group announced the International Finance Corporation (IFC) agreed to provide a loan of up to US$200 million to Olam Agri.

The loan will be used to finance the purchase of wheat, maize and soya from Canada, Germany, Latvia, Lithuania and the United States for delivery to the company’s processing operations, and customers in developing countries that rely heavily on imports of these staple foods. These include Bangladesh, Cameroon, Chad, Egypt, Ghana, India, Indonesia, Nigeria, Pakistan, Senegal, Thailand and Turkey.

Olam Agri is the food, feed and fibre agribusiness subsidiary of Olam Group and the project is part of IFC’s global efforts to address food insecurity, especially for poor and vulnerable populations that adversely impacted by food inflation.

 

Audience Analytics

On Jun 30, Audience Analytics executive director Ryan Ooi Keim Fung acquired 1.92 million shares of the company in a married deal at 25.0 cents per share. With a consideration of S$480,000, this took his direct interest in the Catalist-listed company to 1.14 per cent.

As a non-executive director of Bain Equity, the controlling shareholder of Audience Analytics, Ooi also maintains a deemed interest of 84.54 per cent in the company, taking his total interest to 85.68 per cent.

On Jun 27, the company announced it had entered into an agreement to purchase the intellectual property (IP) rights for the prestigious Golden Bull Award, which complements the company’s existing award programme’s IP portfolio that includes the notable HR Asia Best Companies to Work for in Asia and SME100.

 

EC World Reit

On Jul 1, EC World Asset Management’s executive director and CEO Goh Toh Sim acquired 231,100 units of EC World Reit (ECW) at an average price of 42.1 cents per unit. With a consideration of S$97,406, this increased his direct stake in ECW from 0.10 per cent to 0.13 per cent.

Goh has over 26 years of experience in the management of industrial parks, real estate development and business management in China. Prior to joining the manager, he was the chief representative in China for Keppel Corporation where he was responsible for government relations and business development.

On Jul 6, ECW announced it had extended the maturity of outstanding onshore and offshore facilities to Apr 30, 2023, with the refinancing exercise ongoing. With the announcement, Goh added that unlike the residential sector in China, which is still experiencing headwinds, the e-commerce and logistics sectors in China are resilient.

He added that ECW’s assets are mature e-commerce and logistics assets that are generating stable returns for investors in terms of regular quarterly distributions since its initial public offering (IPO).

 

UMS Holdings

On Jul 5, UMS Holdings executive director Stanley Loh Meng Chong acquired 75,000 shares of the company at S$1.09 per share. With a consideration of S$81,750, this increased his direct interest in the precision engineering group from 0.09 per cent to 0.11 per cent. Loh joined the company in September 2008 as group financial controller, and then appointed as an executive director in June 2010.

Back on May 10, UMS Holdings reported a record-breaking profitable performance for Q1 2022, surpassing S$20 million in quarterly profit for the first time.

Geographically, the group’s key markets except for Taiwan grew significantly in Q1, with Malaysia sales growing 240 per cent year on year, driven by higher material distribution sales and consolidation of JEP Holdings tooling distribution revenue.

Singapore sales also surged 75 per cent due to higher sales for semiconductor integrated systems, increased components for new equipment as well as consolidation of JEP Holding’s semiconductor component business.

UMS Holdings is expected to report its Q2 results in mid-August.

 

A-Sonic Aerospace

On Jun 30, A-Sonic Aerospace CEO Janet LC Tan acquired 81,000 shares of the company for a consideration of S$55,591, at an average price of 68.6 cents per share. This took her direct interest in the company from 60.01 per cent to 60.12 per cent. She has gradually increased her total interest in A-Sonic Aerospace from 53.35 per cent at the end of 2018.

Tan has over 20 years of extensive experience in the aviation industry, with her responsibilities at A-Sonic Aerospace including the setting of the overall long-term business direction, developing business strategies, and implementing growth strategies for the A-Sonic Aerospace and its subsidiaries.

Effective Jun 30, A-Sonic Aerospace was removed from the SGX-ST Watch-List with its average daily market capitalisation exceeding the required S$40 million over the 6 months since Nov 12, 2021.

 

Uni-Asia Group

Between Jul 4 and 7, Uni-Asia Group executive chair Michio Tanamoto acquired 250,000 shares of the company at an average price of S$1.02 per share. With a consideration of S$254,500, this took his direct interest from 3.56 per cent to 3.88 per cent. Appointed the executive chair of the group in April 2020, Tanamoto is one of the founders who established the company in 1997 and has been a director since then.

On Jul 5, Uni-Asia Group executive director Yukihiro Toda also acquired 30,000 shares of the company at an average price of S$1.06 per share. With a consideration of S$31,749, this increased his deemed interest from 0.12 per cent to 0.16 per cent. Toda joined the group in 1998, and has been chief investment officer of Uni-Asia Capital (Japan) since February 2000, responsible for overall real estate fund management business and property investment business in Japan.

 

Challenger Technologies

Between Jun 29 and Jul 4, Digileap Capital acquired 64,800 shares of Challenger Technologies at 56.0 cents per share. With a consideration of S$36,288, this increased the deemed interest of non-executive non-independent director Keith Tan Keng Soon in Challenger Technologies from 15.08 per cent to 15.10 per cent. This followed his acquisition of 104,400 shares also at 56.0 cents per share on Jun 27.

 

The Straits Trading Company

Between Jul 1 and 6, The Straits Trading Company independent and non-executive director Chua Tian Chu acquired 10,000 shares of the company at an average price of S$2.84 per share. This followed his acquisitions of 5,000 shares at S$2.92 per share on Jun 17, 7,000 shares at S$3.00 per share on Jun 13, and 5,000 shares at S$3.05 per share on Mar 8.

 

Inside Insights is a weekly column on The Business Times, read the original version.



Sunny Verghese ups Olam stake; OUE, Hong Fok lead buybacks

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 <div class='content-caption'>REIT Watch 4 July</div>
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The iEdge S-Reit Index held resilient for the first half of 2022, generating flat total returns compared to the FTSE EPRA Nareit Developed Index (a benchmark for global Reits) which declined 18 per cent.

During the period, the S-Reits and property trusts sector in Singapore saw S$359 million of net institutional outflows and S$447 million of net retail inflows.

Hospitality was the best performing sub-segment in H1 2022. The 5 hospitality trusts averaged 17 per cent total returns and garnered S$62 million of net institutional inflows.

Aside from hospitality trusts, diversified S-Reits and some industrial and retail S-Reits were also among the top performing S-Reits in the first half of 2022. The 9 trusts which outperformed the broader iEdge S-Reit Index in H1 2022 include Frasers Hospitality Trust (+52.2 per cent), Ascott Residence Trust (+12.5 per cent), Far East Hospitality Trust (+11.3 per cent), CDL Hospitality Trusts (+11.3 per cent), Mapletree North Asia Commercial Trust (+11.2 per cent), Suntec Reit (+10.3 per cent), CapitaLand Integrated Commercial Trust (+6.6 per cent), Sabana Industrial Reit (+5.9 per cent) and Frasers Centrepoint Trust (+1.7 per cent).

Lendlease Global Commercial Reit was the only S-Reit which received both net institutional and retail inflows for the first half of 2022. It saw S$5 million of net institutional inflows and S$11 million of net retail inflows.

While the first quarter of the year was largely driven by hospitality trusts and the reopening theme, performance was mixed in Q2 2022. The 5 best performing trusts in Q2 2022 include Frasers Hospitality Trust (+32.3 per cent), ParkwayLife Reit (+3.6 per cent), Lendlease Global Commercial Reit (+2.6 per cent), Dasin Retail Trust (+1.6 per cent) and Ascott Residence Trust (+0.9 per cent).

The iEdge S-Reit Index dipped 1.3 per cent in total returns in Q2 2022 while the sector as a whole saw S$173 million of net institutional outflows and S$282 million of net retail inflows. ESR-Logos Reit was the only S-Reit which received both net institutional and retail inflows for Q1 2022. It saw S$2 million of net institutional inflows and S$10 million of net retail inflows.

Inflows into the 5 SGX-listed Reit exchange traded funds (ETFs) hit a record in June 2022, with S$60 million of inflows over the month. This topped the previous record inflow of S$34 million in March 2020, near the start of the Covid-19 pandemic. Across H1 2022, the 5 ETFs received S$113 million of inflows and saw combined asset under management (AUM) rising S$63 million, hitting S$874 million as at end June. 

REIT Watch is a weekly column on The Business Times, <a href="https://www.businesstimes.com.sg/companies-markets/s-reits-shelter-from-the-storm-in-h1-2022">read </a>the original version.
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    REIT Watch 4 July


The iEdge S-Reit Index held resilient for the first half of 2022, generating flat total returns compared to the FTSE EPRA Nareit Developed Index (a benchmark for global Reits) which declined 18 per cent.

During the period, the S-Reits and property trusts sector in Singapore saw S$359 million of net institutional outflows and S$447 million of net retail inflows.

Hospitality was the best performing sub-segment in H1 2022. The 5 hospitality trusts averaged 17 per cent total returns and garnered S$62 million of net institutional inflows.

Aside from hospitality trusts, diversified S-Reits and some industrial and retail S-Reits were also among the top performing S-Reits in the first half of 2022. The 9 trusts which outperformed the broader iEdge S-Reit Index in H1 2022 include Frasers Hospitality Trust (+52.2 per cent), Ascott Residence Trust (+12.5 per cent), Far East Hospitality Trust (+11.3 per cent), CDL Hospitality Trusts (+11.3 per cent), Mapletree North Asia Commercial Trust (+11.2 per cent), Suntec Reit (+10.3 per cent), CapitaLand Integrated Commercial Trust (+6.6 per cent), Sabana Industrial Reit (+5.9 per cent) and Frasers Centrepoint Trust (+1.7 per cent).

Lendlease Global Commercial Reit was the only S-Reit which received both net institutional and retail inflows for the first half of 2022. It saw S$5 million of net institutional inflows and S$11 million of net retail inflows.

While the first quarter of the year was largely driven by hospitality trusts and the reopening theme, performance was mixed in Q2 2022. The 5 best performing trusts in Q2 2022 include Frasers Hospitality Trust (+32.3 per cent), ParkwayLife Reit (+3.6 per cent), Lendlease Global Commercial Reit (+2.6 per cent), Dasin Retail Trust (+1.6 per cent) and Ascott Residence Trust (+0.9 per cent).

The iEdge S-Reit Index dipped 1.3 per cent in total returns in Q2 2022 while the sector as a whole saw S$173 million of net institutional outflows and S$282 million of net retail inflows. ESR-Logos Reit was the only S-Reit which received both net institutional and retail inflows for Q1 2022. It saw S$2 million of net institutional inflows and S$10 million of net retail inflows.

Inflows into the 5 SGX-listed Reit exchange traded funds (ETFs) hit a record in June 2022, with S$60 million of inflows over the month. This topped the previous record inflow of S$34 million in March 2020, near the start of the Covid-19 pandemic. Across H1 2022, the 5 ETFs received S$113 million of inflows and saw combined asset under management (AUM) rising S$63 million, hitting S$874 million as at end June. 

REIT Watch is a weekly column on The Business Times, read the original version.



REIT Watch - S-Reits - shelter from the storm in H1 2022

Capitaland Integrated Commercial Trust / Equity Bottom-Up

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In Q2 2022 to date, the Straits Times Index (STI) has generated an 8 per cent decline in total returns, while the FTSE Developed Index declined 16 per cent. The iEdge S-Reit Index maintained resilience with a 2 per cent decline in total returns, while the FTSE EPRA Nareit Developed Index (a benchmark for global Reits) declined 15 per cent.

For the quarter-to-date, Singapore stocks have seen S$1.05 billion of net institutional outflows, reducing the 2022 year-to-date (YTD) net institutional inflow to S$74 million.

The technology sector has continued to weigh on global stocks, with hospitality and real estate also lagging. Banks, technology, and Reits have now booked the most net institutional outflows across the sectors in 2022 YTD. In the YTD, STI’s total returns have maintained at 1 per cent and iEdge S-Reit Index has declined 0.8 per cent. The FTSE EPRA Nareit Developed Index declined 18 per cent in the YTD.

From an SGX Research market update last week, the 20 stocks among the most actively traded Singapore stocks that booked the highest net institutional inflows in the YTD proportionate to their current market capitalisation included 5 S-Reits. These 20 stocks averaged 22 per cent total returns in the YTD. The 5 S-Reits were Ascott Residence Trust, Suntec Reit, CapitaLand Integrated Commercial Trust, Frasers Hospitality Trust, and Keppel Reit. These 5 S-Reits averaged 18 per cent total returns in the YTD and saw combined net institutional inflows exceeding S$300 million.

Over the past 5 trading sessions through to Jun 23, institutional investors were net buyers of Singapore stocks with S$116 million of net inflows, following S$166 million in net outflows for the preceding 5 sessions. The top 5 stocks with the highest net institutional inflows were DBS, Singtel, CapitaLand Investment, Digital Core Reit and Hongkong Land.

Digital Core Reit in its Q1 2022 business update reported a 2 per cent increase in distributable income versus its IPO forecast. In April 2022, Digital Core Reit’s fifth-largest customer, a privately held IT service provider in Toronto, filed for bankruptcy protection. The Reit manager expects to be able to back-fill this capacity, given the tight market conditions in Toronto and updated that the customer event is not expected to impact distribution per unit.

In terms of director acquisitions over the past week, United Hampshire US Reit (UHReit) Management’s non-independent non-executive director David Tuvia Goss on Jun 20 and 22 acquired 500,000 units of UHReit : ODBU 0% at an average price of 60.9 US cents per unit.

UHReit is the first US grocery-anchored shopping centre and self-storage Reit to list in Singapore, and back in May reported Q1 2022 distributable income of US$8.1 million, 7.9 per cent higher than Q1 2021. UHReit completed its inaugural acquisitions of Colonial Square on Nov 12, 2021 and Penrose Plaza on Nov 24, 2021, with both acquisitions contributing positively to Q1 2022 distributable income.

REIT Watch is a weekly column on The Business Times, <a href="https://www.businesstimes.com.sg/companies-markets/five-s-reits-drawing-net-institutional-inflows-in-2022-year-to-date">read </a>the original version.
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    REIT Watch 27 Jun


In Q2 2022 to date, the Straits Times Index (STI) has generated an 8 per cent decline in total returns, while the FTSE Developed Index declined 16 per cent. The iEdge S-Reit Index maintained resilience with a 2 per cent decline in total returns, while the FTSE EPRA Nareit Developed Index (a benchmark for global Reits) declined 15 per cent.

For the quarter-to-date, Singapore stocks have seen S$1.05 billion of net institutional outflows, reducing the 2022 year-to-date (YTD) net institutional inflow to S$74 million.

The technology sector has continued to weigh on global stocks, with hospitality and real estate also lagging. Banks, technology, and Reits have now booked the most net institutional outflows across the sectors in 2022 YTD. In the YTD, STI’s total returns have maintained at 1 per cent and iEdge S-Reit Index has declined 0.8 per cent. The FTSE EPRA Nareit Developed Index declined 18 per cent in the YTD.

From an SGX Research market update last week, the 20 stocks among the most actively traded Singapore stocks that booked the highest net institutional inflows in the YTD proportionate to their current market capitalisation included 5 S-Reits. These 20 stocks averaged 22 per cent total returns in the YTD. The 5 S-Reits were Ascott Residence Trust, Suntec Reit, CapitaLand Integrated Commercial Trust, Frasers Hospitality Trust, and Keppel Reit. These 5 S-Reits averaged 18 per cent total returns in the YTD and saw combined net institutional inflows exceeding S$300 million.

Over the past 5 trading sessions through to Jun 23, institutional investors were net buyers of Singapore stocks with S$116 million of net inflows, following S$166 million in net outflows for the preceding 5 sessions. The top 5 stocks with the highest net institutional inflows were DBS, Singtel, CapitaLand Investment, Digital Core Reit and Hongkong Land.

Digital Core Reit in its Q1 2022 business update reported a 2 per cent increase in distributable income versus its IPO forecast. In April 2022, Digital Core Reit’s fifth-largest customer, a privately held IT service provider in Toronto, filed for bankruptcy protection. The Reit manager expects to be able to back-fill this capacity, given the tight market conditions in Toronto and updated that the customer event is not expected to impact distribution per unit.

In terms of director acquisitions over the past week, United Hampshire US Reit (UHReit) Management’s non-independent non-executive director David Tuvia Goss on Jun 20 and 22 acquired 500,000 units of UHReit : ODBU 0% at an average price of 60.9 US cents per unit.

UHReit is the first US grocery-anchored shopping centre and self-storage Reit to list in Singapore, and back in May reported Q1 2022 distributable income of US$8.1 million, 7.9 per cent higher than Q1 2021. UHReit completed its inaugural acquisitions of Colonial Square on Nov 12, 2021 and Penrose Plaza on Nov 24, 2021, with both acquisitions contributing positively to Q1 2022 distributable income.

REIT Watch is a weekly column on The Business Times, read the original version.



REIT Watch - Five S-Reits drawing net institutional inflows in 2022 year to date

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