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

Mapletree Industrial Trust / Equity Bottom-Up

<ul><li>While the iEdge S-Reit Index (benchmark for the S-Reits cluster) returned flat in the year to date, the top 10 performing S-Reits within the benchmark averaged 11.1 per cent total returns.</li><li>Of these, four were industrial Reits – AIMS Apac Reit (11.2 per cent in total returns), Mapletree Logistics Trust (9.3 per cent), Mapletree Industrial Trust (7.7 per cent), and CapitaLand Ascendas Reit (7.3 per cent).</li><li>The four industrial Reits averaged 9 per cent in total returns in the year to date and recorded combined net institutional fund inflows of S$18.9 million.</li></ul>

While the iEdge S-Reit Index (benchmark for the S-Reits cluster) returned flat in the year to date, the top 10 performing S-Reits within the benchmark averaged 11.1 per cent total returns.Of these, four were industrial Reits – AIMS Apac Reit (11.2 per cent in total returns), Mapletree Logistics Trust (9.3 per cent), Mapletree Industrial Trust (7.7 per cent), and CapitaLand Ascendas Reit (7.3 per cent).The four industrial Reits averaged 9 per cent in total returns in the year to date and recorded combined net institutional fund inflows of S$18.9 million.

REIT Watch - Four industrial S-Reits among best performing in the year to date

Far East Hospitality Trust / Equity Bottom-Up

<ul><li>10 S-Reits buck the trend despite Reits lagging in June The month of June (till Jun 28, 2023) saw the iEdge S-Reit index record flattish performance at 0.3 per cent total returns for the month, improving from the 3.0 per cent declines in May.</li><li>The 10 best performing S-Reits for the month of June (till Jun 28, 2023) averaged over 7 per cent in total returns.</li></ul>

10 S-Reits buck the trend despite Reits lagging in June The month of June (till Jun 28, 2023) saw the iEdge S-Reit index record flattish performance at 0.3 per cent total returns for the month, improving from the 3.0 per cent declines in May.The 10 best performing S-Reits for the month of June (till Jun 28, 2023) averaged over 7 per cent in total returns.

REIT Watch - 10 S-REITs buck the trend despite REITs lagging in June

<ul><li>REIT Watch - Industrial S-Reits see resilience despite macro challenges All eight of Singapore’s industrial S-Reits have reported their respective Q3 financial results or business updates.</li><li>Four out of the eight industrial S-Reits published financial results for the latest quarter – Aims Apac Reit, EC World Reit, Mapletree Industrial Trust and Mapletree Logistics Trust – while the rest reported interim business updates.</li></ul>

REIT Watch - Industrial S-Reits see resilience despite macro challenges All eight of Singapore’s industrial S-Reits have reported their respective Q3 financial results or business updates.Four out of the eight industrial S-Reits published financial results for the latest quarter – Aims Apac Reit, EC World Reit, Mapletree Industrial Trust and Mapletree Logistics Trust – while the rest reported interim business updates.

REIT Watch - Industrial S-Reits see resilience despite macro challenges

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Major cities in China have started re-opening and easing measures as the number of infections across China dropped.

The city of Shanghai finally re-opened on Jun 1 while some districts of Beijing are allowed to return to work.

Businesses are hopeful that the easing of measures will be a step towards gradual normalisation and have a positive impact on operations.

There are 5 S-Reits and property trusts with pure exposure to China assets.

Sasseur Reit, BHG Retail Reit and Dasin Retail Trust, which is a property trust, are retail Reits while EC World Reit  is an industrial Reit and CapitaLand China Trust is a diversified Reit.

CapitaLand China Trust (CLCT) reported 24 per cent year-on-year growth in gross revenue for Q1 2022, which in turn contributed to the 30.4 per cent growth in net property income (NPI).

CLCT noted that, for its retail portfolio, January to February shopper traffic and sales increased year on year until the recent Covid-19 wave in March.

All business parks remained open during the quarter and operations were not impacted.

However, in line with Shanghai lockdown measures, activities at the Shanghai Fengxian and Kunshan Bacheng Logistics Parks have paused.

The trust expects its logistics portfolio to be largely resilient.

Sasseur Reit reported distributable income of S$24.7 million, a 4.7 per cent increase year on year but 2.4 per cent drop quarter on quarter.

Its Q1 2022 outlet sales of 1,096.2 million yuan was 3.6 per cent lower year on year as a result of weaker buying sentiments and shopper traffic after the latest wave of Covid-19.

However, the Reit noted that there were no known outbreaks of Covid-19 in the cities where its 4 outlets are located.

EC World Reit (ECW) reported a 7.4 per cent year-on-year growth in NPI for Q1 FY2022.

However, distribution to unitholders dipped 9.4 per cent, mainly impacted by withholding tax expense incurred for repatriation of funds and provision for pre-termination compensation to a third-party tenant at Fu Zhuo Industrial as a result of compulsory expropriation.

The Reit noted that even though recent Covid-19 lockdowns in China caused bottlenecks in global supply chains, ECW’s portfolio of properties has not been materially impacted by the recent lockdowns.

BHG Retail Reit has 6 properties across 5 cities in China - Xining, Chengdu, Hefei, Dalian and Beijing.

Notwithstanding the near-term uncertainties and headwinds from Covid-19, the Reit noted that it remains focused to proactively manage and enhance existing assets, as well as to pursue acquisition opportunities.

As at Mar 31, 2022, close to 80 per cent of the Reit’s net lettable area is leased to tenants in experiential trade sectors.

Dasin Retail Trust announced in March 2022 that the trust had entered into a non-binding memorandum of understanding (MOU) to explore the sale of two assets - Shiqi Metro Mall and Xiaolan Metro Mall.

While the new waves of Covid-19 cases and the country’s pandemic prevention and control policies have moderated the pace of recovery of consumer consumption, the trust noted that it will continue to look into ways to realise organic growth, through improving tenant mix, introducing trending brands, or undertaking asset enhancement initiatives (AEIs).

REIT Watch is a weekly column on The Business Times, <a href="https://www.businesstimes.com.sg/companies-markets/s-reits-with-china-assets-focus-on-growth-despite-lockdowns">read </a>the original version
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    REIT Watch 6 Jun


Major cities in China have started re-opening and easing measures as the number of infections across China dropped.

The city of Shanghai finally re-opened on Jun 1 while some districts of Beijing are allowed to return to work.

Businesses are hopeful that the easing of measures will be a step towards gradual normalisation and have a positive impact on operations.

There are 5 S-Reits and property trusts with pure exposure to China assets.

Sasseur Reit, BHG Retail Reit and Dasin Retail Trust, which is a property trust, are retail Reits while EC World Reit  is an industrial Reit and CapitaLand China Trust is a diversified Reit.

CapitaLand China Trust (CLCT) reported 24 per cent year-on-year growth in gross revenue for Q1 2022, which in turn contributed to the 30.4 per cent growth in net property income (NPI).

CLCT noted that, for its retail portfolio, January to February shopper traffic and sales increased year on year until the recent Covid-19 wave in March.

All business parks remained open during the quarter and operations were not impacted.

However, in line with Shanghai lockdown measures, activities at the Shanghai Fengxian and Kunshan Bacheng Logistics Parks have paused.

The trust expects its logistics portfolio to be largely resilient.

Sasseur Reit reported distributable income of S$24.7 million, a 4.7 per cent increase year on year but 2.4 per cent drop quarter on quarter.

Its Q1 2022 outlet sales of 1,096.2 million yuan was 3.6 per cent lower year on year as a result of weaker buying sentiments and shopper traffic after the latest wave of Covid-19.

However, the Reit noted that there were no known outbreaks of Covid-19 in the cities where its 4 outlets are located.

EC World Reit (ECW) reported a 7.4 per cent year-on-year growth in NPI for Q1 FY2022.

However, distribution to unitholders dipped 9.4 per cent, mainly impacted by withholding tax expense incurred for repatriation of funds and provision for pre-termination compensation to a third-party tenant at Fu Zhuo Industrial as a result of compulsory expropriation.

The Reit noted that even though recent Covid-19 lockdowns in China caused bottlenecks in global supply chains, ECW’s portfolio of properties has not been materially impacted by the recent lockdowns.

BHG Retail Reit has 6 properties across 5 cities in China - Xining, Chengdu, Hefei, Dalian and Beijing.

Notwithstanding the near-term uncertainties and headwinds from Covid-19, the Reit noted that it remains focused to proactively manage and enhance existing assets, as well as to pursue acquisition opportunities.

As at Mar 31, 2022, close to 80 per cent of the Reit’s net lettable area is leased to tenants in experiential trade sectors.

Dasin Retail Trust announced in March 2022 that the trust had entered into a non-binding memorandum of understanding (MOU) to explore the sale of two assets - Shiqi Metro Mall and Xiaolan Metro Mall.

While the new waves of Covid-19 cases and the country’s pandemic prevention and control policies have moderated the pace of recovery of consumer consumption, the trust noted that it will continue to look into ways to realise organic growth, through improving tenant mix, introducing trending brands, or undertaking asset enhancement initiatives (AEIs).

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



REIT Watch - S-Reits with China assets focus on growth despite lockdowns

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Prices and rentals of Singapore industrial spaces continued to rise in the first quarter of 2022, despite a dip in the overall occupancy rate, according to the quarterly market report published by JTC.

In Q1 2022, the overall occupancy rate fell to 89.8 per cent, a drop of 0.4 percentage points compared to the previous quarter, due to new completions picking up significantly, and increase in supply exceeding new demand.

Despite the drop in occupancy, price and rental indices of all industrial space rose by 2.1 per cent and 1.0 per cent respectively compared to the previous quarter. 
SGX lists 8 industrial S-Reits, of which 6 have exposure to Singapore-based industrial assets.

These 6 trusts are AIMS Apac Reit, Ascendas Reit, ESR-Logos Reit, Mapletree Industrial Trust, Mapletree Logistics Trust and Sabana Industrial Reit. Assets of Daiwa House Logistics Trust and EC World Reit are based in Japan and China respectively.

AIMS Apac Reit reported higher FY22 gross revenue and net property income (NPI) of S$142.4 million and S$103.2 million, rising 16.1 per cent and 17.9 per cent year on year respectively. 
The improved performance was mainly attributed to contributions from recently acquired assets as well as higher rental and recoveries for several Singapore assets. 
Ascendas Reit’s March 2022 occupancy rate of 90.0 per cent for its Singapore portfolio was 0.2 per cent lower compared to a quarter ago, but 3.1 per cent higher than a year ago. 
The Reit recorded an average portfolio rent reversion of 3.9 per cent for Singapore leases renewed in Q1 2022 and expects rental reversion across its overall portfolio for FY22 to be in the positive low single-digit range in view of current market uncertainties. 
ESR-Logos Reit (E-LOG) started trading on May 5, following the successful merger of ESR-Reit and ARA Logos Logistics Trust. 
The Reit’s asset portfolio is valued at S$5.5 billion across Singapore and Australia and it intends to actively leverage on the initial sponsor pipeline of approximately US$2 billion of visible and executable pipeline across key gateway markets in the Asia-Pacific. 
Mapletree Industrial Trust (MIT) announced FY21/22 distribution per unit (DPU) of 13.8 cents, an increase of 10.0 per cent year on year. 
MIT reported higher average overall portfolio occupancy for Q4 FY21/22 compared to the previous quarter, mainly due to improved occupancy of the Singapore portfolio especially among business park buildings and flatted factories. 
Mapletree Logistics Trust’s (MLT) FY21/22 amount distributable to unitholders grew 17.3 per cent year on year to S$390.7 million, while DPU rose 5.5 per cent to 8.787 cents. 
MLT observed that the leasing market in Singapore remains stable with demand boosted by e-commerce growth and business inventory stockpiling. 
Sabana Industrial Reit, in its Q1 2022 business update, reported healthy occupancy of 85.2 per cent and positive rental reversion of 4.0 per cent. 
The Reit noted that this is the 8th quarter in the past 9 quarters where positive reversion was achieved. REIT Watch is a weekly column on The Business Times,<a href="https://www.businesstimes.com.sg/companies-markets/tenant-sales-back-at-pre-covid-levels-for-retail-s-reits"> </a><a href="https://www.businesstimes.com.sg/companies-markets/industrial-s-reits-report-positive-rental-reversions">read </a>the original version.
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    REIT Watch


Prices and rentals of Singapore industrial spaces continued to rise in the first quarter of 2022, despite a dip in the overall occupancy rate, according to the quarterly market report published by JTC.

In Q1 2022, the overall occupancy rate fell to 89.8 per cent, a drop of 0.4 percentage points compared to the previous quarter, due to new completions picking up significantly, and increase in supply exceeding new demand.

Despite the drop in occupancy, price and rental indices of all industrial space rose by 2.1 per cent and 1.0 per cent respectively compared to the previous quarter.  
SGX lists 8 industrial S-Reits, of which 6 have exposure to Singapore-based industrial assets.

These 6 trusts are AIMS Apac Reit, Ascendas Reit, ESR-Logos Reit, Mapletree Industrial Trust, Mapletree Logistics Trust and Sabana Industrial Reit. Assets of Daiwa House Logistics Trust and EC World Reit are based in Japan and China respectively.

AIMS Apac Reit reported higher FY22 gross revenue and net property income (NPI) of S$142.4 million and S$103.2 million, rising 16.1 per cent and 17.9 per cent year on year respectively.  
The improved performance was mainly attributed to contributions from recently acquired assets as well as higher rental and recoveries for several Singapore assets.  
Ascendas Reit’s March 2022 occupancy rate of 90.0 per cent for its Singapore portfolio was 0.2 per cent lower compared to a quarter ago, but 3.1 per cent higher than a year ago.  
The Reit recorded an average portfolio rent reversion of 3.9 per cent for Singapore leases renewed in Q1 2022 and expects rental reversion across its overall portfolio for FY22 to be in the positive low single-digit range in view of current market uncertainties.  
ESR-Logos Reit (E-LOG) started trading on May 5, following the successful merger of ESR-Reit and ARA Logos Logistics Trust.  
The Reit’s asset portfolio is valued at S$5.5 billion across Singapore and Australia and it intends to actively leverage on the initial sponsor pipeline of approximately US$2 billion of visible and executable pipeline across key gateway markets in the Asia-Pacific.  
Mapletree Industrial Trust (MIT) announced FY21/22 distribution per unit (DPU) of 13.8 cents, an increase of 10.0 per cent year on year.  
MIT reported higher average overall portfolio occupancy for Q4 FY21/22 compared to the previous quarter, mainly due to improved occupancy of the Singapore portfolio especially among business park buildings and flatted factories.  
Mapletree Logistics Trust’s (MLT) FY21/22 amount distributable to unitholders grew 17.3 per cent year on year to S$390.7 million, while DPU rose 5.5 per cent to 8.787 cents.  
MLT observed that the leasing market in Singapore remains stable with demand boosted by e-commerce growth and business inventory stockpiling.  
Sabana Industrial Reit, in its Q1 2022 business update, reported healthy occupancy of 85.2 per cent and positive rental reversion of 4.0 per cent.  
The Reit noted that this is the 8th quarter in the past 9 quarters where positive reversion was achieved.  REIT Watch is a weekly column on The Business Times, read the original version.



REIT Watch - Industrial S-Reits report positive rental reversions

Singapore

EC World Real Estate Investment Trust is a Singapore-based real estate investment trust (REIT) that invests in a diversified portfolio of income-producing properties primarily used for e-commerce, supply chain management, and logistics. Its portfolio includes properties like Chongxian Port Investment and Hengde Logistics, located predominantly in the Yangtze River Delta, People's Republic of China. The company is headquartered in Singapore and was founded in 2015.

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EC World (ECWREIT SP)

REIT Watch - Four industrial S-Reits among best performing in the year to date

While the iEdge S-Reit Index (benchmark for the S-Reits cluster) returned flat in the year to date, the top 10 performing S-Reits within the...

Singapore Exchange Ltd (SGX)

REIT Watch - 10 S-REITs buck the trend despite REITs lagging in June

10 S-Reits buck the trend despite Reits lagging in June The month of June (till Jun 28, 2023) saw the iEdge S-Reit index record flattish...

Singapore Exchange Ltd (SGX)

REIT Watch - Industrial S-Reits see resilience despite macro challenges

REIT Watch - Industrial S-Reits see resilience despite macro challenges All eight of Singapore’s industrial S-Reits have reported their respective...

Singapore Exchange Ltd (SGX)

REIT Watch - S-Reits with China assets focus on growth despite lockdowns

Major cities in China have started re-opening and easing measures as the number of infections across China dropped. The city...

Singapore Exchange Ltd (SGX)

REIT Watch - Industrial S-Reits report positive rental reversions

Prices and rentals of Singapore industrial spaces continued to rise in the first quarter of 2022, despite a dip in the overall...

Singapore Exchange Ltd (SGX)

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Market Cap (USDm)

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