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

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MOF, IRAS &amp; MAS have announced new measures for S-REITs – 1) distribution timeline extensions to qualify for tax transparency, 2) leverage limit raised from 45% to 50% and 3) defer implementation of a new minimum interest coverage ratio (ICR) requirement to 2022. 
	 </li>
	<li>
The measures are expected to support S-REIT managers in their capital management, adding further flexibility to manage cash flows. Focus will be on DPUs and industry outlooks as S-REITs report quarter earnings over the next few weeks. 
	 </li>
	<li>
The FTSE ST REIT Index opened up 3% on 17 April, after declining 20% in the 2020 YTD through to 16 April, trimming its longer term 10 year annualised total returns to 8%, which has been in-line with regional REIT Indices.
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 To support S-REITs during these challenging times, <a href="https://www.mas.gov.sg/news/media-releases/2020/new-measures-to-help-reits-navigate-operating-challenges-posed-by-covid-19">MOF, IRAS and MAS have jointly announced new measures</a> on 16 April. These new measures include:

<ol>
<li>Extension of timeline for S-REITs to distribute at least 90% of their taxable income from 3 months to 12 months (after the end of FY2020) to qualify for tax transparency;</li>
	<li>Increasing leverage limit from 45% to 50%; and</li>
	<li>Defer of implementation of a new minimum interest coverage ratio (ICR) requirement to 1 Jan 2022.</li>
</ol>
The new measures, together with enhanced share issue limit announced by SGX RegCo last week, will provide S-REITs more flexibility to access various funding options and manage cash flows. With active capital management by REIT managers, S-REITs have maintained an average Debt to Asset ratio of 35.3%, based on latest company data as of 31 March 2020. Raising the leverage limit may provide S-REITs more flexibility to manage their capital structure.

List of 10 S-REITs with highest debt-to-asset ratios

<table class="table table-striped"><tbody>
<tr>
<td>Name</td>
			<td>SGX Code</td>
			<td>Mkt Cap S$M</td>
			<td>2020 YTD daily turnover S$’000</td>
			<td>17 Apr Morning Session Price Change %</td>
			<td>Debt to Assets ratio %</td>
		</tr>
<tr>
<td>
			ESR-REIT
			</td>
			<td>
			J91U
			</td>
			<td>
			1,196
			</td>
			<td>
			8,652
			</td>
			<td>
			5.9%
			</td>
			<td>
			41.5
			</td>
		</tr>
<tr>
<td>
			OUE COMMERCIAL REIT
			</td>
			<td>
			TS0U
			</td>
			<td>
			2,218
			</td>
			<td>
			1,765
			</td>
			<td>
			4.9%
			</td>
			<td>
			40.3
			</td>
		</tr>
<tr>
<td>
			CACHE LOGISTICS TRUST
			</td>
			<td>
			K2LU
			</td>
			<td>
			573
			</td>
			<td>
			1,502
			</td>
			<td>
			2.9%
			</td>
			<td>
			40.1
			</td>
		</tr>
<tr>
<td>
			IREIT GLOBAL
			</td>
			<td>
			UD1U
			</td>
			<td>
			423
			</td>
			<td>
			1,984
			</td>
			<td>
			0.8%
			</td>
			<td>
			39.3
			</td>
		</tr>
<tr>
<td>
			FAR EAST HOSPITALITY TRUST
			</td>
			<td>
			Q5T
			</td>
			<td>
			927
			</td>
			<td>
			2,242
			</td>
			<td>
			5.3%
			</td>
			<td>
			39.2
			</td>
		</tr>
<tr>
<td>
			EC WORLD REIT
			</td>
			<td>
			BWCU
			</td>
			<td>
			507
			</td>
			<td>
			1,255
			</td>
			<td>
			1.6%
			</td>
			<td>
			38.7
			</td>
		</tr>
<tr>
<td>
			KEPPEL PACIFIC OAK US REIT
			</td>
			<td>
			CMOU
			</td>
			<td>
			762
			</td>
			<td>
			3,070
			</td>
			<td>
			3.2%
			</td>
			<td>
			38.5
			</td>
		</tr>
<tr>
<td>
			SOILBUILD BUSINESS SPACE REIT
			</td>
			<td>
			SV3U
			</td>
			<td>
			469
			</td>
			<td>
			980
			</td>
			<td>
			2.7%
			</td>
			<td>
			38.2
			</td>
		</tr>
<tr>
<td>
			MANULIFE US REIT
			</td>
			<td>
			BTOU
			</td>
			<td>
			1,594
			</td>
			<td>
			8,190
			</td>
			<td>
			2.5%
			</td>
			<td>
			37.7
			</td>
		</tr>
<tr>
<td>
			SUNTEC REIT
			</td>
			<td>
			T82U
			</td>
			<td>
			3,723
			</td>
			<td>
			23,855
			</td>
			<td>
			6.8%
			</td>
			<td>
			37.7
			</td>
		</tr>
<tr>
<td>Average</td>
			<td> </td>
			<td> </td>
			<td> </td>
			<td>3.6%</td>
			<td>39.1</td>
		</tr>
<tr>
<td>Median</td>
			<td> </td>
			<td> </td>
			<td> </td>
			<td>3.0%</td>
			<td>39.0</td>
		</tr>
</tbody></table>
Source: Thomson Reuters, Company data (Data as of 16 April 2020). Price Change based on S$-terms. Note Debt/Asset metrics taken from Company data as of 31 March 2020.

S-REITs 10-year annualised returns remains above global REITs average

In the 2020 year-to-date through to 16 April, the FTSE ST REIT Index declined 19.8%, in line with the average 22.2% decline among global REIT indices. Annualised 10 year total returns of FTSE ST REIT Index was also trimmed to 8.0% but remained slightly above the average of 7.2% for global REIT indices.
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<figure>
 <img src='https://api2.sgx.com/sites/default/files/2020-04/Annualised%2010%20year.PNG' alt='Annualised 10 Year Total Return' />
 </figure>
 <div class='content-caption'>Annualised 10 Year Total Return</div>
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<html><body>The FTSE ST REIT Index is currently trading at a Price-to-Book ratio of 0.96x (below its 10 year average of 1.01x) and a forward dividend yield spread of 5.15% against Singapore 10 year Benchmark Government Bond Yield, above the STI forward dividend yield spread of 3.92%.</body></html>

<figure>
 <img src='https://api2.sgx.com/sites/default/files/2020-04/FTSE%20ST%20REIT%20Index%20Yield.PNG' alt='FTSE ST REIT Index Yield ' />
 </figure>
 <div class='content-caption'>FTSE ST REIT Index Yield </div>
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S-REITs with majority of their retail properties Singapore

These 7 S-REITs averaged a decline of 29.2% for the 2020 year to date session through to 16 April. In the morning session of 17 April, they rebounded an average of 5.3% from the previous day.

<table class="table table-striped"><tbody>
<tr>
<td>
			Name
			</td>
			<td>
			SGX Code
			</td>
			<td colspan="2">
			Mkt Cap S$M
			</td>
			<td>
			Geographic Breakdown by Asset Portfolio
			</td>
			<td>
			YTD Price Return % as of 16 April
			</td>
			<td>
			Price Return on 17 April Morning Session %
			</td>
		</tr>
<tr>
<td>
			CAPITALAND MALL TRUST
			</td>
			<td colspan="2">
			C38U
			</td>
			<td>
			6,553
			</td>
			<td>
			100% SG
			</td>
			<td>
			-28.0%
			</td>
			<td>
			6.8%
			</td>
		</tr>
<tr>
<td>
			SUNTEC REIT
			</td>
			<td colspan="2">
			T82U
			</td>
			<td>
			3,723
			</td>
			<td>
			89% SG, 11% AU
			</td>
			<td>
			-28.3%
			</td>
			<td>
			6.8%
			</td>
		</tr>
<tr>
<td>
			MAPLETREE COMMERCIAL TRUST
			</td>
			<td colspan="2">
			N2IU
			</td>
			<td>
			5,873
			</td>
			<td>
			100% SG
			</td>
			<td>
			-25.9%
			</td>
			<td>
			5.6%
			</td>
		</tr>
<tr>
<td>
			FRASERS CENTREPOINT TRUST
			</td>
			<td colspan="2">
			J69U
			</td>
			<td>
			2,265
			</td>
			<td>
			100% SG
			</td>
			<td>
			-28.1%
			</td>
			<td>
			7.4%
			</td>
		</tr>
<tr>
<td>
			SPH REIT
			</td>
			<td colspan="2">
			SK6U
			</td>
			<td>
			2,185
			</td>
			<td>
			81% SG, 19% AU
			</td>
			<td>
			-26.2%
			</td>
			<td>
			3.2%
			</td>
		</tr>
<tr>
<td>
			STARHILL GLOBAL REIT
			</td>
			<td colspan="2">
			P40U
			</td>
			<td>
			1,064
			</td>
			<td>
			68.7% SG, 15.9% AU, 12.6% MY, 2.8% CN &amp; JP
			</td>
			<td>
			-33.1%
			</td>
			<td>
			4.1%
			</td>
		</tr>
<tr>
<td>
			LENDLEASE GLOBAL COMMERCIAL REIT
			</td>
			<td colspan="2">
			JYEU
			</td>
			<td>
			710
			</td>
			<td>
			71.5% SG, 28.5% Italy
			</td>
			<td>
			-34.9%
			</td>
			<td>
			3.3%
			</td>
		</tr>
<tr>
<td>
			Average
			</td>
			<td>
			 
			</td>
			<td colspan="2">
			 
			</td>
			<td>
			 
			</td>
			<td>
			-29.2%
			</td>
			<td>
			5.3%
			</td>
		</tr>
<tr>
<td>
			Median
			</td>
			<td>
			 
			</td>
			<td colspan="2">
			 
			</td>
			<td>
			 
			</td>
			<td>
			-28.1%
			</td>
			<td>
			5.6%
			</td>
		</tr>
</tbody></table>
Source: Thomson Reuters, Company data (Data as of 16 April 2020). Price change based on S$-terms. Note geographic breakdown by asset portfolio taken from Company data as 31 March 2020.

 All eyes on upcoming S-REITs quarterly earnings

S-REITs are expected to release their March quarterly earnings in the coming weeks and focus outlooks on multiple areas, from continued maintenance of strong tenant relationships, to utilising balance sheets for the most effective cash flows. The new measure also requires S-REITs to disclose leverage ratios and ICRs in annual reports and interim financial results, to provide investors with timely information on their risk profiles.

Refer to weekly <a href="https://www.sgxacademy.com/economiccalendar/">Economic Calendar</a> for the latest S-REITs earnings schedule.
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MOF, IRAS &amp; MAS have announced new measures for S-REITs – 1) distribution timeline extensions to qualify for tax transparency, 2) leverage limit raised from 45% to 50% and 3) defer implementation of a new minimum interest coverage ratio (ICR) requirement to 2022. 
	 
	
The measures are expected to support S-REIT managers in their capital management, adding further flexibility to manage cash flows. Focus will be on DPUs and industry outlooks as S-REITs report quarter earnings over the next few weeks.  
	 
	
The FTSE ST REIT Index opened up 3% on 17 April, after declining 20% in the 2020 YTD through to 16 April, trimming its longer term 10 year annualised total returns to 8%, which has been in-line with regional REIT Indices.


 

 To support S-REITs during these challenging times, MOF, IRAS and MAS have jointly announced new measures on 16 April. These new measures include:


Extension of timeline for S-REITs to distribute at least 90% of their taxable income from 3 months to 12 months (after the end of FY2020) to qualify for tax transparency;
	Increasing leverage limit from 45% to 50%; and
	Defer of implementation of a new minimum interest coverage ratio (ICR) requirement to 1 Jan 2022.

The new measures, together with enhanced share issue limit announced by SGX RegCo last week, will provide S-REITs more flexibility to access various funding options and manage cash flows. With active capital management by REIT managers, S-REITs have maintained an average Debt to Asset ratio of 35.3%, based on latest company data as of 31 March 2020. Raising the leverage limit may provide S-REITs more flexibility to manage their capital structure.

List of 10 S-REITs with highest debt-to-asset ratios



Name
			SGX Code
			Mkt Cap S$M
			2020 YTD daily turnover S$’000
			17 Apr Morning Session Price Change %
			Debt to Assets ratio %
		


			ESR-REIT
			
			
			J91U
			
			
			1,196
			
			
			8,652
			
			
			5.9%
			
			
			41.5
			
		


			OUE COMMERCIAL REIT
			
			
			TS0U
			
			
			2,218
			
			
			1,765
			
			
			4.9%
			
			
			40.3
			
		


			CACHE LOGISTICS TRUST
			
			
			K2LU
			
			
			573
			
			
			1,502
			
			
			2.9%
			
			
			40.1
			
		


			IREIT GLOBAL
			
			
			UD1U
			
			
			423
			
			
			1,984
			
			
			0.8%
			
			
			39.3
			
		


			FAR EAST HOSPITALITY TRUST
			
			
			Q5T
			
			
			927
			
			
			2,242
			
			
			5.3%
			
			
			39.2
			
		


			EC WORLD REIT
			
			
			BWCU
			
			
			507
			
			
			1,255
			
			
			1.6%
			
			
			38.7
			
		


			KEPPEL PACIFIC OAK US REIT
			
			
			CMOU
			
			
			762
			
			
			3,070
			
			
			3.2%
			
			
			38.5
			
		


			SOILBUILD BUSINESS SPACE REIT
			
			
			SV3U
			
			
			469
			
			
			980
			
			
			2.7%
			
			
			38.2
			
		


			MANULIFE US REIT
			
			
			BTOU
			
			
			1,594
			
			
			8,190
			
			
			2.5%
			
			
			37.7
			
		


			SUNTEC REIT
			
			
			T82U
			
			
			3,723
			
			
			23,855
			
			
			6.8%
			
			
			37.7
			
		

Average
			 
			 
			 
			3.6%
			39.1
		

Median
			 
			 
			 
			3.0%
			39.0
		

Source: Thomson Reuters, Company data (Data as of 16 April 2020). Price Change based on S$-terms. Note Debt/Asset metrics taken from Company data as of 31 March 2020.

S-REITs 10-year annualised returns remains above global REITs average

In the 2020 year-to-date through to 16 April, the FTSE ST REIT Index declined 19.8%, in line with the average 22.2% decline among global REIT indices. Annualised 10 year total returns of FTSE ST REIT Index was also trimmed to 8.0% but remained slightly above the average of 7.2% for global REIT indices.



      
    
    Annualised 10 Year Total Return

The FTSE ST REIT Index is currently trading at a Price-to-Book ratio of 0.96x (below its 10 year average of 1.01x) and a forward dividend yield spread of 5.15% against Singapore 10 year Benchmark Government Bond Yield, above the STI forward dividend yield spread of 3.92%.


      
    
    FTSE ST REIT Index Yield 


S-REITs with majority of their retail properties Singapore

These 7 S-REITs averaged a decline of 29.2% for the 2020 year to date session through to 16 April. In the morning session of 17 April, they rebounded an average of 5.3% from the previous day.




			Name
			
			
			SGX Code
			
			
			Mkt Cap S$M
			
			
			Geographic Breakdown by Asset Portfolio
			
			
			YTD Price Return % as of 16 April
			
			
			Price Return on 17 April Morning Session %
			
		


			CAPITALAND MALL TRUST
			
			
			C38U
			
			
			6,553
			
			
			100% SG
			
			
			-28.0%
			
			
			6.8%
			
		


			SUNTEC REIT
			
			
			T82U
			
			
			3,723
			
			
			89% SG, 11% AU
			
			
			-28.3%
			
			
			6.8%
			
		


			MAPLETREE COMMERCIAL TRUST
			
			
			N2IU
			
			
			5,873
			
			
			100% SG
			
			
			-25.9%
			
			
			5.6%
			
		


			FRASERS CENTREPOINT TRUST
			
			
			J69U
			
			
			2,265
			
			
			100% SG
			
			
			-28.1%
			
			
			7.4%
			
		


			SPH REIT
			
			
			SK6U
			
			
			2,185
			
			
			81% SG, 19% AU
			
			
			-26.2%
			
			
			3.2%
			
		


			STARHILL GLOBAL REIT
			
			
			P40U
			
			
			1,064
			
			
			68.7% SG, 15.9% AU, 12.6% MY, 2.8% CN &amp; JP
			
			
			-33.1%
			
			
			4.1%
			
		


			LENDLEASE GLOBAL COMMERCIAL REIT
			
			
			JYEU
			
			
			710
			
			
			71.5% SG, 28.5% Italy
			
			
			-34.9%
			
			
			3.3%
			
		


			Average
			
			
			 
			
			
			 
			
			
			 
			
			
			-29.2%
			
			
			5.3%
			
		


			Median
			
			
			 
			
			
			 
			
			
			 
			
			
			-28.1%
			
			
			5.6%
			
		

Source: Thomson Reuters, Company data (Data as of 16 April 2020). Price change based on S$-terms. Note geographic breakdown by asset portfolio taken from Company data as 31 March 2020.

 All eyes on upcoming S-REITs quarterly earnings

S-REITs are expected to release their March quarterly earnings in the coming weeks and focus outlooks on multiple areas, from continued maintenance of strong tenant relationships, to utilising balance sheets for the most effective cash flows. The new measure also requires S-REITs to disclose leverage ratios and ICRs in annual reports and interim financial results, to provide investors with timely information on their risk profiles.

Refer to weekly Economic Calendar for the latest S-REITs earnings schedule.



New Significant Supportive Measures for S-REITs 

<figure>
 <img src='https://api2.sgx.com/sites/default/files/2020-03/Lendlease-Global-REIT-CEO.jpg' alt='Lendlease ' />
 </figure>
 <div class='content-caption'>Lendlease </div>
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With more than two decades of industry experience under his belt, Kelvin Chow has come to appreciate the convergence of art and science in real estate.

“Traditionally, in the area of lease management, the key requirement was just to lease the property out, get a good price, and manage its risks,” said the Chief Executive Officer of the manager of SGX-listed Lendlease Global Commercial REIT.

“But in this day and age, just focusing on the science of the transaction is not enough – there’s an art to it as well, such as finding creative ways to manage an asset, understanding the surrounding demographics, and getting the right tenant mix for the target market.”

Chow, who keeps a notebook by his pillow to jot down ideas that pop into his head during the wee hours, finds his greatest satisfaction in instances when he is able to generate value.

“What inspires me most is solving problems and unlocking potential – improving the REIT’s value proposition, such as boosting cashflow and yields, as well as managing disruptors,” he added.

Chow, who holds a Master of Business Administration from Universitas 21 Global, and is a Fellow of the Association of Chartered Certified Accountants, was appointed CEO of the manager of Lendlease Global REIT in 2019.

Prior to this appointment, he was the Managing Director of Investment Management in Asia in 2018, overseeing the asset management function and performance of the Asia funds platform.

Before joining Lendlease, he held senior financial management roles with Keppel REIT, Soilbuild Business Space REIT and then-Cambridge Industrial Trust, now called ESR-REIT.

Listed on SGX Mainboard on 2 October 2019, Lendlease Global REIT has the principal investment strategy of investing, directly or indirectly, in a diversified portfolio of stabilised income-producing real estate assets located globally, and used primarily for retail and/or office purposes. Its initial portfolio comprises a leasehold interest in the Lendlease-developed 313@somerset retail property in Singapore, and a freehold interest in Milan’s Sky Complex that consists of three Grade A freehold office buildings. The portfolio has a total net lettable area of approximately 1.3 million square feet, with an appraised value of S$1.4 billion.

The REIT is managed by Lendlease Global Commercial Trust Management Pte Ltd, an indirect, wholly owned subsidiary of the sponsor, Lendlease Corporation Ltd. The latter is part of the Lendlease Group – an international property and infrastructure group established in 1958 and headquartered in Sydney. Listed on the Australian Securities Exchange, the Group has operations spanning Australia, Asia, Europe and the Americas.

Enhancing Performance

To generate growth, Lendlease Global REIT has adopted a three-pronged strategy – proactive asset management, investments and acquisition growth, as well as prudent capital management.

“We want to drive the performance of our existing assets, enhance our portfolio through suitable acquisitions, and manage our financing to maximise returns to unitholders,” Chow said.

For the REIT’s prime retail asset in Singapore – 313@somerset – which has developed as a differentiated lifestyle destination mall, one focus is maintaining a robust relationship with its high-quality, well-diversified base of tenants.

Leases in the mall are typically structured with three-year tenures, comprising base rent and turnover rent, which is calculated as a percentage of tenants’ gross turnover, with an average rental escalation of 3%.

The REIT is also exploring how to unlock further value for unitholders after the permissible plot ratio for 313@somerset was raised under the Urban Redevelopment Authority’s (URA) Master Plan 2019, resulting in a potential increase of up to 1,008 square metres of space based on its current gross floor area utilisation.

“We’re conducting feasibility studies on what will generate the highest cashflow possible, such as identifying specific floors in the mall where we can increase footfall or traffic,” he added.

Over in Milan, Sky Complex comprises about a third of Lendlease Global REIT’s IPO portfolio based on its appraised value. It consists of three Grade A, freehold office buildings located in one of the city’s newest and most vibrant office precincts – Milano Santa Giula.

It is 100% leased to Sky Italia, an Italian satellite television platform owned by Comcast Corporation, the world’s largest broadcasting and cable TV company by revenue. The single lease runs until 2032, with a break option in 2026.

“There is no retail component in Sky Complex. This tenant is ranked number one in the broadcasting industry, while the lease has a rental step-up clause that tracks the Italian National Institute of Statistics’ Consumer Price Index variation, and features a triple net structure whereby the tenant is generally responsible for the operating expenses of the property,” Chow said.

“It’s like owning AAA-rated bonds – the asset provides the portfolio with very stable cashflow.”

Resilient Outlook

Meanwhile, the outlook for 313@somerset remains bright. The mall features brands – including Pomelo Fashion and Love, Bonito – with omni-channel offerings that appeal to millennials and the younger generation.

“Singapore’s retail sector will continue to evolve, driven by changing consumer behaviours and the rise of e-commerce,” he added.

“The government’s proposed plans to rejuvenate Singapore's Orchard Road shopping belt, with the Somerset sub-precinct slated to provide more youth-oriented dining and entertainment offerings, also augurs well for us.”

While acknowledging that the COVID-19 coronavirus outbreak may impact domestic retail sales, Chow remains sanguine about 313@somerset’s performance.

“Yes, regional travel bans may affect foot traffic, but we expect the mall to stay resilient,” he said.

Retail market fundamentals also appear encouraging, with little supply expected over the next two to three years, according to data from real estate consultancy JLL. They point to a tighter vacancy environment that should support modest rental growth, Chow added.

“Our rental rates for 313@somerset are already at the bottom of the cycle, with one-third of our leases due for renewal. The remaining two-thirds will capture the annual rental escalation, and help mitigate any downside.”

Nonetheless, the REIT manager will monitor the impact of COVID-19 and if tenants seek reprieves, it will assess their needs on a case-by-case basis, he said.

And as for Milan – the fourth-largest economy in Europe and one of the continent’s top office sector destinations for investors and businesses – the investment market has remained active through 2019, with strong interest from both domestic and foreign investors for office assets, Chow noted.

“The robust take-up rates for office space led to tighter supply in 2019, and the take-up rate for this year is expected to stay healthy. We’re pretty positive on this asset, and don’t expect much downside risk ahead,” he added.

Earlier this week, Italy imposed a ban on all non-essential travel to and around the country, as well as a temporary ban of public events through 3 April 2020, in a bid to contain the coronavirus spread.

Meanwhile, acquisitions are definitely on the cards. But the REIT, which has a global mandate, isn’t focusing on any specific country or region at the moment. “The potential asset must tick the right boxes – enhance the diversification of the portfolio and deliver the best value proposition to investors,” he noted.

Key criteria include at least 80% occupancy levels, no major asset enhancement initiatives (AEIs) for two years post-acquisition, and prevailing rentals must be at or above market rates. Opportunities may also emerge in Singapore, Italy, or other gateway cities in which its sponsor, Lendlease Corporation, has a presence.

“Current market conditions – whether the office or retail sector in that geography is in an up or downturn – will also play a part,” he added.

Lendlease Corporation has a secured development pipeline of approximately A$112 billion and current funds under management of approximately A$37 billion, each of which includes retail and office assets. These may present future acquisition opportunities for the REIT.

Fully Hedged

Prudence is the watchword as macro challenges continue to abound, ranging from continuing US-Sino trade tensions to the economic fallout generated by the coronavirus epidemic, Chow noted.

Lendlease Global REIT has hedged 100% of its floating-rate debt to fixed-rate via interest rate swaps and options. To mitigate foreign currency risks, it has also substantially hedged its projected euro-denominated income for FY2020 and FY2021.

“We have also protected our cashflows – they are hedged not just for one but two years,” he added.

The REIT has a focus on delivering stable and long-term returns to investors. For example, it has obtained a euro-denominated term loan, which provides a full natural currency hedge against its euro investment in Sky Complex.

“When the euro falls, our asset values will fall in tandem, but our loan amount will also decline, which neutralises the impact on our balance sheet as well as P&amp;L,” he added, referring to the REIT’s profit and loss statement.

An added complexity, however, comes from the nature of retail malls, Chow admitted. “The challenge lies in managing our tenants’ performances and sales, as well as determining the overall mix of stores within the mall.”

“This encompasses a gamut of marketing and promotional activities, which are aimed at forging a clear identity for the mall, targeting specific shopper profiles, and could include using technology to develop apps to reward spending,” he added.

Apart from grappling with the day-to-day operational issues of the REIT, the 48-year-old is also focused on nurturing the next-generation of leaders for the real estate industry.

“REITs as an industry will continue to grow in Singapore, but where will the next-generation of talent come from?” he asked.

“The question I ask myself is: Do I see my job just as a career? Or can I create a legacy by sharing my values, experience and knowledge? The answer is obvious – it’s the latter.”

Lendlease Global Commercial REIT

Listed on SGX on 2 October 2019, Lendlease Global Commercial REIT is established with the principal investment strategy of investing, directly or indirectly, in a diversified portfolio of stabilised income-producing real estate assets located globally, which are used primarily for retail and/or office purposes. Its initial portfolio comprises a leasehold interest in, 313@somerset, a retail property located in Singapore, and a freehold interest in Sky Complex, which comprises three office buildings located in Milan. The portfolio has a total net lettable area of approximately 1.3 million square feet, with an appraised value of S$1.4 billion. LREIT is managed by Lendlease Global Commercial Trust Management Pte. Ltd, an indirect wholly owned subsidiary of the sponsor, Lendlease Corporation Ltd.

The company website is: <a href="http://www.lendleaseglobalcommercialreit.com">www.lendleaseglobalcommercialreit.com</a>. 
Click <a href="https://www2.sgx.com/securities/equities/JYEU">here</a> for the company's StockFacts page. 
For financial results from 2 Oct 2019 to 31 Dec 2019, click <a href="https://links.sgx.com/FileOpen/2QFY2020%20Results%20Press%20Release%20-%20Final..ashx?App=Announcement&amp;FileID=595729">here</a>.
</body></html>


      
    
    Lendlease 


With more than two decades of industry experience under his belt, Kelvin Chow has come to appreciate the convergence of art and science in real estate.

“Traditionally, in the area of lease management, the key requirement was just to lease the property out, get a good price, and manage its risks,” said the Chief Executive Officer of the manager of SGX-listed Lendlease Global Commercial REIT.

“But in this day and age, just focusing on the science of the transaction is not enough – there’s an art to it as well, such as finding creative ways to manage an asset, understanding the surrounding demographics, and getting the right tenant mix for the target market.”

Chow, who keeps a notebook by his pillow to jot down ideas that pop into his head during the wee hours, finds his greatest satisfaction in instances when he is able to generate value.

“What inspires me most is solving problems and unlocking potential – improving the REIT’s value proposition, such as boosting cashflow and yields, as well as managing disruptors,” he added.

Chow, who holds a Master of Business Administration from Universitas 21 Global, and is a Fellow of the Association of Chartered Certified Accountants, was appointed CEO of the manager of Lendlease Global REIT in 2019.

Prior to this appointment, he was the Managing Director of Investment Management in Asia in 2018, overseeing the asset management function and performance of the Asia funds platform.

Before joining Lendlease, he held senior financial management roles with Keppel REIT, Soilbuild Business Space REIT and then-Cambridge Industrial Trust, now called ESR-REIT.

Listed on SGX Mainboard on 2 October 2019, Lendlease Global REIT has the principal investment strategy of investing, directly or indirectly, in a diversified portfolio of stabilised income-producing real estate assets located globally, and used primarily for retail and/or office purposes. Its initial portfolio comprises a leasehold interest in the Lendlease-developed 313@somerset retail property in Singapore, and a freehold interest in Milan’s Sky Complex that consists of three Grade A freehold office buildings. The portfolio has a total net lettable area of approximately 1.3 million square feet, with an appraised value of S$1.4 billion.

The REIT is managed by Lendlease Global Commercial Trust Management Pte Ltd, an indirect, wholly owned subsidiary of the sponsor, Lendlease Corporation Ltd. The latter is part of the Lendlease Group – an international property and infrastructure group established in 1958 and headquartered in Sydney. Listed on the Australian Securities Exchange, the Group has operations spanning Australia, Asia, Europe and the Americas.

Enhancing Performance

To generate growth, Lendlease Global REIT has adopted a three-pronged strategy – proactive asset management, investments and acquisition growth, as well as prudent capital management.

“We want to drive the performance of our existing assets, enhance our portfolio through suitable acquisitions, and manage our financing to maximise returns to unitholders,” Chow said.

For the REIT’s prime retail asset in Singapore – 313@somerset – which has developed as a differentiated lifestyle destination mall, one focus is maintaining a robust relationship with its high-quality, well-diversified base of tenants.

Leases in the mall are typically structured with three-year tenures, comprising base rent and turnover rent, which is calculated as a percentage of tenants’ gross turnover, with an average rental escalation of 3%.

The REIT is also exploring how to unlock further value for unitholders after the permissible plot ratio for 313@somerset was raised under the Urban Redevelopment Authority’s (URA) Master Plan 2019, resulting in a potential increase of up to 1,008 square metres of space based on its current gross floor area utilisation.

“We’re conducting feasibility studies on what will generate the highest cashflow possible, such as identifying specific floors in the mall where we can increase footfall or traffic,” he added.

Over in Milan, Sky Complex comprises about a third of Lendlease Global REIT’s IPO portfolio based on its appraised value. It consists of three Grade A, freehold office buildings located in one of the city’s newest and most vibrant office precincts – Milano Santa Giula.

It is 100% leased to Sky Italia, an Italian satellite television platform owned by Comcast Corporation, the world’s largest broadcasting and cable TV company by revenue. The single lease runs until 2032, with a break option in 2026.

“There is no retail component in Sky Complex. This tenant is ranked number one in the broadcasting industry, while the lease has a rental step-up clause that tracks the Italian National Institute of Statistics’ Consumer Price Index variation, and features a triple net structure whereby the tenant is generally responsible for the operating expenses of the property,” Chow said.

“It’s like owning AAA-rated bonds – the asset provides the portfolio with very stable cashflow.”

Resilient Outlook

Meanwhile, the outlook for 313@somerset remains bright. The mall features brands – including Pomelo Fashion and Love, Bonito – with omni-channel offerings that appeal to millennials and the younger generation.

“Singapore’s retail sector will continue to evolve, driven by changing consumer behaviours and the rise of e-commerce,” he added.

“The government’s proposed plans to rejuvenate Singapore's Orchard Road shopping belt, with the Somerset sub-precinct slated to provide more youth-oriented dining and entertainment offerings, also augurs well for us.”

While acknowledging that the COVID-19 coronavirus outbreak may impact domestic retail sales, Chow remains sanguine about 313@somerset’s performance.

“Yes, regional travel bans may affect foot traffic, but we expect the mall to stay resilient,” he said.

Retail market fundamentals also appear encouraging, with little supply expected over the next two to three years, according to data from real estate consultancy JLL. They point to a tighter vacancy environment that should support modest rental growth, Chow added.

“Our rental rates for 313@somerset are already at the bottom of the cycle, with one-third of our leases due for renewal. The remaining two-thirds will capture the annual rental escalation, and help mitigate any downside.”

Nonetheless, the REIT manager will monitor the impact of COVID-19 and if tenants seek reprieves, it will assess their needs on a case-by-case basis, he said.

And as for Milan – the fourth-largest economy in Europe and one of the continent’s top office sector destinations for investors and businesses – the investment market has remained active through 2019, with strong interest from both domestic and foreign investors for office assets, Chow noted.

“The robust take-up rates for office space led to tighter supply in 2019, and the take-up rate for this year is expected to stay healthy. We’re pretty positive on this asset, and don’t expect much downside risk ahead,” he added.

Earlier this week, Italy imposed a ban on all non-essential travel to and around the country, as well as a temporary ban of public events through 3 April 2020, in a bid to contain the coronavirus spread.

Meanwhile, acquisitions are definitely on the cards. But the REIT, which has a global mandate, isn’t focusing on any specific country or region at the moment. “The potential asset must tick the right boxes – enhance the diversification of the portfolio and deliver the best value proposition to investors,” he noted.

Key criteria include at least 80% occupancy levels, no major asset enhancement initiatives (AEIs) for two years post-acquisition, and prevailing rentals must be at or above market rates. Opportunities may also emerge in Singapore, Italy, or other gateway cities in which its sponsor, Lendlease Corporation, has a presence.

“Current market conditions – whether the office or retail sector in that geography is in an up or downturn – will also play a part,” he added.

Lendlease Corporation has a secured development pipeline of approximately A$112 billion and current funds under management of approximately A$37 billion, each of which includes retail and office assets. These may present future acquisition opportunities for the REIT.

Fully Hedged

Prudence is the watchword as macro challenges continue to abound, ranging from continuing US-Sino trade tensions to the economic fallout generated by the coronavirus epidemic, Chow noted.

Lendlease Global REIT has hedged 100% of its floating-rate debt to fixed-rate via interest rate swaps and options. To mitigate foreign currency risks, it has also substantially hedged its projected euro-denominated income for FY2020 and FY2021.

“We have also protected our cashflows – they are hedged not just for one but two years,” he added.

The REIT has a focus on delivering stable and long-term returns to investors. For example, it has obtained a euro-denominated term loan, which provides a full natural currency hedge against its euro investment in Sky Complex.

“When the euro falls, our asset values will fall in tandem, but our loan amount will also decline, which neutralises the impact on our balance sheet as well as P&amp;L,” he added, referring to the REIT’s profit and loss statement.

An added complexity, however, comes from the nature of retail malls, Chow admitted. “The challenge lies in managing our tenants’ performances and sales, as well as determining the overall mix of stores within the mall.”

“This encompasses a gamut of marketing and promotional activities, which are aimed at forging a clear identity for the mall, targeting specific shopper profiles, and could include using technology to develop apps to reward spending,” he added.

Apart from grappling with the day-to-day operational issues of the REIT, the 48-year-old is also focused on nurturing the next-generation of leaders for the real estate industry.

“REITs as an industry will continue to grow in Singapore, but where will the next-generation of talent come from?” he asked.

“The question I ask myself is: Do I see my job just as a career? Or can I create a legacy by sharing my values, experience and knowledge? The answer is obvious – it’s the latter.”

Lendlease Global Commercial REIT

Listed on SGX on 2 October 2019, Lendlease Global Commercial REIT is established with the principal investment strategy of investing, directly or indirectly, in a diversified portfolio of stabilised income-producing real estate assets located globally, which are used primarily for retail and/or office purposes. Its initial portfolio comprises a leasehold interest in, 313@somerset, a retail property located in Singapore, and a freehold interest in Sky Complex, which comprises three office buildings located in Milan. The portfolio has a total net lettable area of approximately 1.3 million square feet, with an appraised value of S$1.4 billion. LREIT is managed by Lendlease Global Commercial Trust Management Pte. Ltd, an indirect wholly owned subsidiary of the sponsor, Lendlease Corporation Ltd.

The company website is: www.lendleaseglobalcommercialreit.com.  
Click here for the company's StockFacts page.  
For financial results from 2 Oct 2019 to 31 Dec 2019, click here.



Lendlease Global REIT: Unlocking Value, Driving Growth

SGX is one of Asia’s regional hub for Real Estate Investment Trusts (REITs) &amp; Property Trusts. Based on the FTSE ST REIT Index, the dividend yield for Singapore REITs have been 4.2 – 6.8% over a period of 5 years (Source: Bloomberg, 2014-2018). Over 80% of Singapore REITs &amp; Property Trusts own offshore assets across Asia Pacific, US &amp; Europe.&nbsp;
As of end Sep 2019, SGX lists 44 REITs &amp; Property Trusts with a combined market capitalisation of over S$100 billion, representing c.12% of Singapore’s overall market
SGX’s REITs &amp; Property Trusts offer wide diversity across property sub-segments REIT Indices:
<ul>
<li>FTSE ST REIT Index: 37 out of the 44 trusts represented</li>
<li>iEdge S-REIT Index: 36 out of the 44 trusts represented</li>
</ul>
<h2>Key Statistics At a Glance</h2>
<ul>
<li>Average dividend yield of 6.2%</li>
<li>Average 3-year annualised total return of 10.8%</li>
<li>Average gearing ratio of 34.5%</li>
<li>10 year market cap CAGR of 22%</li>
</ul>

SGX is one of Asia’s regional hub for Real Estate Investment Trusts (REITs) &amp; Property Trusts. Based on the FTSE ST REIT Index, the dividend yield for Singapore REITs have been 4.2 – 6.8% over a period of 5 years (Source: Bloomberg, 2014-2018). Over 80% of Singapore REITs &amp; Property Trusts own offshore assets across Asia Pacific, US &amp; Europe.&nbsp;
As of end Sep 2019, SGX lists 44 REITs &amp; Property Trusts with a combined market capitalisation of over S$100 billion, representing c.12% of Singapore’s overall market
SGX’s REITs &amp; Property Trusts offer wide diversity across property sub-segments REIT Indices:

FTSE ST REIT Index: 37 out of the 44 trusts represented
iEdge S-REIT Index: 36 out of the 44 trusts represented

Key Statistics At a Glance

Average dividend yield of 6.2%
Average 3-year annualised total return of 10.8%
Average gearing ratio of 34.5%
10 year market cap CAGR of 22%


Chartbook: SREITs & Property Trusts -  October 2019

<!DOCTYPE html PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN" "http://www.w3.org/TR/REC-html40/loose.dtd">
<html><body>
<ul>
<li>
Singapore lists over 100 stocks with market cap above S$1 billion, out of which 36 have dividend yields of 4.5% and above, compared with the STI’s current yield of 4.0%. Among these 36 stocks, 28 are categorised as REITs, stapled and/or business trusts, while eight are companies. 
	 </li>
	<li>
The five highest-yielding REITs and business trusts are: Hutchison Port Trust (9.1%), Netlink Trust (8.1%), Keppel Infrastructure Trust (8.0%), Cromwell REIT (7.8%), and Mapletree North Asia Trust (7.1%). These five trusts average a yield of 8.0%. 
	 </li>
	<li>
The five highest-yielding companies are: StarHub (10.5%), Singtel (5.7%), Hong Leong Finance (5.4%), Frasers Property (4.8%), and SIA Engineering (4.8%). The five average a yield of 6.2%. 
	 </li>
	<li>In the YTD, the five best-performing billionaire stocks were: Hi-P (+89.8%), SBS Transit (+47.4%), Thai Beverage (+38.0%), Venture Corp (+35.1%), and Silverlake Axis (+34.7%). These five plays have averaged a total return of 49.0% in the YTD.</li>
</ul>
Singapore Exchange lists over 100 stocks with a market capitalisation above S$1 billion. These stocks provide a wide range of investment choices, spanning both local and international businesses that operate across different sectors and industries.

Best-Yielding Billionaire Stocks

Of these, 36 stocks have dividend yields of 4.5% and above, which compares with the benchmark Straits Times Index’s (STI) current yield of about 4.0%. Among these 36 high-yielding stocks, 28 are categorised as Real Estate Investment Trusts (REITs), stapled and/or business trusts, while eight are companies. This includes six STI constituents.

The five highest-yielding REITs and business trusts are: Hutchison Port Holdings Trust (9.1%), Netlink NBN Trust (8.1%), Keppel Infrastructure Trust (8.0%), Cromwell European REIT (7.8%), and Mapletree North Asia Commercial Trust (7.1%). These five trusts have averaged a yield of 8.0%.

The table below details the 10 highest-yielding REITs and business trusts on SGX, sorted by dividend yield.

<table class="table table-striped"><tbody>
<tr>
<td>
			Name
			</td>
			<td>
			SGX Code
			</td>
			<td>
			Market Cap (S$M)
			</td>
			<td>
			Div Yld (%)
			</td>
			<td>
			P/B (x)
			</td>
		</tr>
<tr>
<td>
			HUTCHISON PORT HOLDINGS TRUST*
			</td>
			<td>
			NS8U
			</td>
			<td>
			2,833
			</td>
			<td>
			9.1
			</td>
			<td>
			0.6
			</td>
		</tr>
<tr>
<td>
			NETLINK NBN TRUST
			</td>
			<td>
			CJLU
			</td>
			<td>
			3,255
			</td>
			<td>
			8.1
			</td>
			<td>
			1.1
			</td>
		</tr>
<tr>
<td>
			KEPPEL INFRASTRUCTURE TRUST
			</td>
			<td>
			A7RU
			</td>
			<td>
			2,111
			</td>
			<td>
			8.0
			</td>
			<td>
			1.7
			</td>
		</tr>
<tr>
<td>
			CROMWELL EUROPEAN REIT*
			</td>
			<td>
			CNNU
			</td>
			<td>
			1,651
			</td>
			<td>
			7.8
			</td>
			<td>
			0.9
			</td>
		</tr>
<tr>
<td>
			MAPLETREE NORTH ASIA COMMERCIAL TRUST
			</td>
			<td>
			RW0U
			</td>
			<td>
			4,221
			</td>
			<td>
			7.1
			</td>
			<td>
			1.0
			</td>
		</tr>
<tr>
<td>
			ESR-REIT
			</td>
			<td>
			J91U
			</td>
			<td>
			1,730
			</td>
			<td>
			7.1
			</td>
			<td>
			1.1
			</td>
		</tr>
<tr>
<td>
			OUE HOSPITALITY TRUST
			</td>
			<td>
			SK7
			</td>
			<td>
			1,345
			</td>
			<td>
			6.8
			</td>
			<td>
			1.0
			</td>
		</tr>
<tr>
<td>
			OUE COMMERCIAL REIT
			</td>
			<td>
			TS0U
			</td>
			<td>
			1,487
			</td>
			<td>
			6.7
			</td>
			<td>
			0.7
			</td>
		</tr>
<tr>
<td>
			CAPITALAND RETAIL CHINA TRUST
			</td>
			<td>
			AU8U
			</td>
			<td>
			1,538
			</td>
			<td>
			6.6
			</td>
			<td>
			1.0
			</td>
		</tr>
<tr>
<td>
			FRASERS COMMERCIAL TRUST
			</td>
			<td>
			ND8U
			</td>
			<td>
			1,325
			</td>
			<td>
			6.5
			</td>
			<td>
			0.9
			</td>
		</tr>
<tr>
<td>
			Average
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			7.4
			</td>
			<td>
			1.0
			</td>
		</tr>
</tbody></table>
Source: Bloomberg &amp; StockFacts (data as of 5 April 2019) 
*Note: Hutchison Port and Cromwell REIT are traded in USD and EUR respectively, with SGD equivalents shown in table

The five highest-yielding companies are: StarHub Ltd (10.5%), Singapore Telecoms (5.7%), Hong Leong Finance (5.4%), Frasers Property (4.8%), and SIA Engineering Co (4.8%). The five have averaged a yield of 6.2%, and are categorised to the telecommunications, financial services, real estate development and transport services sectors.

The table below details the 10 highest-yielding companies on SGX, sorted by market capitalisation.

<table class="table table-striped"><tbody>
<tr>
<td>
			Name
			</td>
			<td>
			SGX Code
			</td>
			<td>
			Market Cap (S$M)
			</td>
			<td>
			Div Yld (%)
			</td>
			<td>
			P/E (x)
			</td>
		</tr>
<tr>
<td>
			STARHUB LTD
			</td>
			<td>
			CC3
			</td>
			<td>
			2,630
			</td>
			<td>
			10.5
			</td>
			<td>
			13.3
			</td>
		</tr>
<tr>
<td>
			SINGAPORE TELECOMMUNICATIONS
			</td>
			<td>
			Z74
			</td>
			<td>
			50,456
			</td>
			<td>
			5.7
			</td>
			<td>
			16.5
			</td>
		</tr>
<tr>
<td>
			HONG LEONG FINANCE
			</td>
			<td>
			S41
			</td>
			<td>
			1,232
			</td>
			<td>
			5.4
			</td>
			<td>
			10.6
			</td>
		</tr>
<tr>
<td>
			FRASERS PROPERTY
			</td>
			<td>
			TQ5
			</td>
			<td>
			5,286
			</td>
			<td>
			4.8
			</td>
			<td>
			7.1
			</td>
		</tr>
<tr>
<td>
			SIA ENGINEERING CO
			</td>
			<td>
			S59
			</td>
			<td>
			2,820
			</td>
			<td>
			4.8
			</td>
			<td>
			17.5
			</td>
		</tr>
<tr>
<td>
			SINGAPORE EXCHANGE
			</td>
			<td>
			S68
			</td>
			<td>
			7,960
			</td>
			<td>
			4.7
			</td>
			<td>
			21.5
			</td>
		</tr>
<tr>
<td>
			YANLORD LAND GROUP
			</td>
			<td>
			Z25
			</td>
			<td>
			2,743
			</td>
			<td>
			4.7
			</td>
			<td>
			3.6
			</td>
		</tr>
<tr>
<td>
			DBS GROUP HOLDINGS
			</td>
			<td>
			D05
			</td>
			<td>
			69,022
			</td>
			<td>
			4.5
			</td>
			<td>
			12.3
			</td>
		</tr>
<tr>
<td>
			COMFORTDELGRO CORP
			</td>
			<td>
			C52
			</td>
			<td>
			5,500
			</td>
			<td>
			4.1
			</td>
			<td>
			17.8
			</td>
		</tr>
<tr>
<td>
			OXLEY HOLDINGS LTD
			</td>
			<td>
			5UX
			</td>
			<td>
			1,298
			</td>
			<td>
			3.9
			</td>
			<td>
			5.6
			</td>
		</tr>
<tr>
<td>
			Average
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			5.3
			</td>
			<td>
			12.6
			</td>
		</tr>
</tbody></table>
Source: Bloomberg &amp; StockFacts (data as of 5 April 2019)

Billionaire Best-Performers in YTD

In the 2019 year-to-date, the five best-performing billionaire stocks were: Hi-P International (+89.8%), SBS Transit (+47.4%), Thai Beverage PCL (+38.0%), Venture Corp (+35.1%), and Silverlake Axis (+34.7%). These five companies averaged a total return of 49.0% in the YTD, bringing their one-year, three-year and five-year total returns to +6.4%, +139.9% and +171.7% respectively. They are categorised to the information technology, transport services and consumer staples sectors.

The table below details the 10 best-performing billionaire stocks in the YTD, sorted by YTD total returns.

<table class="table table-striped"><tbody>
<tr>
<td>
			Name
			</td>
			<td>
			SGX Code
			</td>
			<td>
			Market Cap (S$M)
			</td>
			<td>
			Total Return YTD (%)
			</td>
			<td>
			Total Return 1Y (%)
			</td>
			<td>
			Total Return 3Y (%)
			</td>
			<td>
			Total Return 5Y (%)
			</td>
		</tr>
<tr>
<td>
			HI-P INTL
			</td>
			<td>
			H17
			</td>
			<td>
			1,345
			</td>
			<td>
			89.8
			</td>
			<td>
			-14.3
			</td>
			<td>
			409.9
			</td>
			<td>
			295.8
			</td>
		</tr>
<tr>
<td>
			SBS TRANSIT
			</td>
			<td>
			S61
			</td>
			<td>
			1,241
			</td>
			<td>
			47.4
			</td>
			<td>
			59.5
			</td>
			<td>
			93.4
			</td>
			<td>
			271.9
			</td>
		</tr>
<tr>
<td>
			THAI BEVERAGE PCL
			</td>
			<td>
			Y92
			</td>
			<td>
			20,844
			</td>
			<td>
			38.0
			</td>
			<td>
			6.1
			</td>
			<td>
			27.0
			</td>
			<td>
			66.0
			</td>
		</tr>
<tr>
<td>
			VENTURE CORP
			</td>
			<td>
			V03
			</td>
			<td>
			5,429
			</td>
			<td>
			35.1
			</td>
			<td>
			-29.2
			</td>
			<td>
			159.7
			</td>
			<td>
			225.8
			</td>
		</tr>
<tr>
<td>
			SILVERLAKE AXIS
			</td>
			<td>
			5CP
			</td>
			<td>
			1,468
			</td>
			<td>
			34.7
			</td>
			<td>
			9.9
			</td>
			<td>
			9.5
			</td>
			<td>
			-1.2
			</td>
		</tr>
<tr>
<td>
			CHINA AVIATION OIL
			</td>
			<td>
			G92
			</td>
			<td>
			1,213
			</td>
			<td>
			33.0
			</td>
			<td>
			-7.1
			</td>
			<td>
			95.2
			</td>
			<td>
			83.6
			</td>
		</tr>
<tr>
<td>
			GOLDEN AGRI-RESOURCES
			</td>
			<td>
			E5H
			</td>
			<td>
			4,075
			</td>
			<td>
			30.6
			</td>
			<td>
			-6.9
			</td>
			<td>
			-20.7
			</td>
			<td>
			-41.7
			</td>
		</tr>
<tr>
<td>
			YANGZIJIANG SHIPBUILDING
			</td>
			<td>
			BS6
			</td>
			<td>
			6,353
			</td>
			<td>
			28.8
			</td>
			<td>
			45.9
			</td>
			<td>
			92.4
			</td>
			<td>
			73.2
			</td>
		</tr>
<tr>
<td>
			OUE LTD
			</td>
			<td>
			LJ3
			</td>
			<td>
			1,596
			</td>
			<td>
			23.8
			</td>
			<td>
			0.1
			</td>
			<td>
			12.6
			</td>
			<td>
			-12.9
			</td>
		</tr>
<tr>
<td>
			CITIC ENVIROTECH
			</td>
			<td>
			CEE
			</td>
			<td>
			1,126
			</td>
			<td>
			22.4
			</td>
			<td>
			-33.0
			</td>
			<td>
			-32.4
			</td>
			<td>
			-32.3
			</td>
		</tr>
<tr>
<td>
			Average
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			38.4
			</td>
			<td>
			3.1
			</td>
			<td>
			84.7
			</td>
			<td>
			92.8
			</td>
		</tr>
</tbody></table>
Source: Bloomberg &amp; StockFacts (data as of 5 April 2019)

In the YTD, the 10 least-performing billionaire stocks were: Best World International (-22.1%), Top Glove Corp (-18.4%), StarHub Ltd (-13.1%), Dairy Farm International (-9.5%), Japfa Ltd (-8.2%), Jardine Matheson Holdings (-7.9%), Mandarin Oriental International (-5.7%), Jardine Cycle &amp; Carriage (-2.5%), Sheng Siong Group (-1.9%), and Raffles Medical Group (-1.8%). They averaged a total return of -9.1% over the period.
</body></html>





Singapore lists over 100 stocks with market cap above S$1 billion, out of which 36 have dividend yields of 4.5% and above, compared with the STI’s current yield of 4.0%. Among these 36 stocks, 28 are categorised as REITs, stapled and/or business trusts, while eight are companies. 
	 
	
The five highest-yielding REITs and business trusts are: Hutchison Port Trust (9.1%), Netlink Trust (8.1%), Keppel Infrastructure Trust (8.0%), Cromwell REIT (7.8%), and Mapletree North Asia Trust (7.1%). These five trusts average a yield of 8.0%. 
	 
	
The five highest-yielding companies are: StarHub (10.5%), Singtel (5.7%), Hong Leong Finance (5.4%), Frasers Property (4.8%), and SIA Engineering (4.8%). The five average a yield of 6.2%. 
	 
	In the YTD, the five best-performing billionaire stocks were: Hi-P (+89.8%), SBS Transit (+47.4%), Thai Beverage (+38.0%), Venture Corp (+35.1%), and Silverlake Axis (+34.7%). These five plays have averaged a total return of 49.0% in the YTD.

Singapore Exchange lists over 100 stocks with a market capitalisation above S$1 billion. These stocks provide a wide range of investment choices, spanning both local and international businesses that operate across different sectors and industries.

Best-Yielding Billionaire Stocks

Of these, 36 stocks have dividend yields of 4.5% and above, which compares with the benchmark Straits Times Index’s (STI) current yield of about 4.0%. Among these 36 high-yielding stocks, 28 are categorised as Real Estate Investment Trusts (REITs), stapled and/or business trusts, while eight are companies. This includes six STI constituents.

The five highest-yielding REITs and business trusts are: Hutchison Port Holdings Trust (9.1%), Netlink NBN Trust (8.1%), Keppel Infrastructure Trust (8.0%), Cromwell European REIT (7.8%), and Mapletree North Asia Commercial Trust (7.1%). These five trusts have averaged a yield of 8.0%.

The table below details the 10 highest-yielding REITs and business trusts on SGX, sorted by dividend yield.




			Name
			
			
			SGX Code
			
			
			Market Cap (S$M)
			
			
			Div Yld (%)
			
			
			P/B (x)
			
		


			HUTCHISON PORT HOLDINGS TRUST*
			
			
			NS8U
			
			
			2,833
			
			
			9.1
			
			
			0.6
			
		


			NETLINK NBN TRUST
			
			
			CJLU
			
			
			3,255
			
			
			8.1
			
			
			1.1
			
		


			KEPPEL INFRASTRUCTURE TRUST
			
			
			A7RU
			
			
			2,111
			
			
			8.0
			
			
			1.7
			
		


			CROMWELL EUROPEAN REIT*
			
			
			CNNU
			
			
			1,651
			
			
			7.8
			
			
			0.9
			
		


			MAPLETREE NORTH ASIA COMMERCIAL TRUST
			
			
			RW0U
			
			
			4,221
			
			
			7.1
			
			
			1.0
			
		


			ESR-REIT
			
			
			J91U
			
			
			1,730
			
			
			7.1
			
			
			1.1
			
		


			OUE HOSPITALITY TRUST
			
			
			SK7
			
			
			1,345
			
			
			6.8
			
			
			1.0
			
		


			OUE COMMERCIAL REIT
			
			
			TS0U
			
			
			1,487
			
			
			6.7
			
			
			0.7
			
		


			CAPITALAND RETAIL CHINA TRUST
			
			
			AU8U
			
			
			1,538
			
			
			6.6
			
			
			1.0
			
		


			FRASERS COMMERCIAL TRUST
			
			
			ND8U
			
			
			1,325
			
			
			6.5
			
			
			0.9
			
		


			Average
			
			
			 
			
			
			 
			
			
			7.4
			
			
			1.0
			
		

Source: Bloomberg &amp; StockFacts (data as of 5 April 2019) 
*Note: Hutchison Port and Cromwell REIT are traded in USD and EUR respectively, with SGD equivalents shown in table

The five highest-yielding companies are: StarHub Ltd (10.5%), Singapore Telecoms (5.7%), Hong Leong Finance (5.4%), Frasers Property (4.8%), and SIA Engineering Co (4.8%). The five have averaged a yield of 6.2%, and are categorised to the telecommunications, financial services, real estate development and transport services sectors.

The table below details the 10 highest-yielding companies on SGX, sorted by market capitalisation.




			Name
			
			
			SGX Code
			
			
			Market Cap (S$M)
			
			
			Div Yld (%)
			
			
			P/E (x)
			
		


			STARHUB LTD
			
			
			CC3
			
			
			2,630
			
			
			10.5
			
			
			13.3
			
		


			SINGAPORE TELECOMMUNICATIONS
			
			
			Z74
			
			
			50,456
			
			
			5.7
			
			
			16.5
			
		


			HONG LEONG FINANCE
			
			
			S41
			
			
			1,232
			
			
			5.4
			
			
			10.6
			
		


			FRASERS PROPERTY
			
			
			TQ5
			
			
			5,286
			
			
			4.8
			
			
			7.1
			
		


			SIA ENGINEERING CO
			
			
			S59
			
			
			2,820
			
			
			4.8
			
			
			17.5
			
		


			SINGAPORE EXCHANGE
			
			
			S68
			
			
			7,960
			
			
			4.7
			
			
			21.5
			
		


			YANLORD LAND GROUP
			
			
			Z25
			
			
			2,743
			
			
			4.7
			
			
			3.6
			
		


			DBS GROUP HOLDINGS
			
			
			D05
			
			
			69,022
			
			
			4.5
			
			
			12.3
			
		


			COMFORTDELGRO CORP
			
			
			C52
			
			
			5,500
			
			
			4.1
			
			
			17.8
			
		


			OXLEY HOLDINGS LTD
			
			
			5UX
			
			
			1,298
			
			
			3.9
			
			
			5.6
			
		


			Average
			
			
			 
			
			
			 
			
			
			5.3
			
			
			12.6
			
		

Source: Bloomberg &amp; StockFacts (data as of 5 April 2019)

Billionaire Best-Performers in YTD

In the 2019 year-to-date, the five best-performing billionaire stocks were: Hi-P International (+89.8%), SBS Transit (+47.4%), Thai Beverage PCL (+38.0%), Venture Corp (+35.1%), and Silverlake Axis (+34.7%). These five companies averaged a total return of 49.0% in the YTD, bringing their one-year, three-year and five-year total returns to +6.4%, +139.9% and +171.7% respectively. They are categorised to the information technology, transport services and consumer staples sectors.

The table below details the 10 best-performing billionaire stocks in the YTD, sorted by YTD total returns.




			Name
			
			
			SGX Code
			
			
			Market Cap (S$M)
			
			
			Total Return YTD (%)
			
			
			Total Return 1Y (%)
			
			
			Total Return 3Y (%)
			
			
			Total Return 5Y (%)
			
		


			HI-P INTL
			
			
			H17
			
			
			1,345
			
			
			89.8
			
			
			-14.3
			
			
			409.9
			
			
			295.8
			
		


			SBS TRANSIT
			
			
			S61
			
			
			1,241
			
			
			47.4
			
			
			59.5
			
			
			93.4
			
			
			271.9
			
		


			THAI BEVERAGE PCL
			
			
			Y92
			
			
			20,844
			
			
			38.0
			
			
			6.1
			
			
			27.0
			
			
			66.0
			
		


			VENTURE CORP
			
			
			V03
			
			
			5,429
			
			
			35.1
			
			
			-29.2
			
			
			159.7
			
			
			225.8
			
		


			SILVERLAKE AXIS
			
			
			5CP
			
			
			1,468
			
			
			34.7
			
			
			9.9
			
			
			9.5
			
			
			-1.2
			
		


			CHINA AVIATION OIL
			
			
			G92
			
			
			1,213
			
			
			33.0
			
			
			-7.1
			
			
			95.2
			
			
			83.6
			
		


			GOLDEN AGRI-RESOURCES
			
			
			E5H
			
			
			4,075
			
			
			30.6
			
			
			-6.9
			
			
			-20.7
			
			
			-41.7
			
		


			YANGZIJIANG SHIPBUILDING
			
			
			BS6
			
			
			6,353
			
			
			28.8
			
			
			45.9
			
			
			92.4
			
			
			73.2
			
		


			OUE LTD
			
			
			LJ3
			
			
			1,596
			
			
			23.8
			
			
			0.1
			
			
			12.6
			
			
			-12.9
			
		


			CITIC ENVIROTECH
			
			
			CEE
			
			
			1,126
			
			
			22.4
			
			
			-33.0
			
			
			-32.4
			
			
			-32.3
			
		


			Average
			
			
			 
			
			
			 
			
			
			38.4
			
			
			3.1
			
			
			84.7
			
			
			92.8
			
		

Source: Bloomberg &amp; StockFacts (data as of 5 April 2019)

In the YTD, the 10 least-performing billionaire stocks were: Best World International (-22.1%), Top Glove Corp (-18.4%), StarHub Ltd (-13.1%), Dairy Farm International (-9.5%), Japfa Ltd (-8.2%), Jardine Matheson Holdings (-7.9%), Mandarin Oriental International (-5.7%), Jardine Cycle &amp; Carriage (-2.5%), Sheng Siong Group (-1.9%), and Raffles Medical Group (-1.8%). They averaged a total return of -9.1% over the period.



Singapore’s Best-Yielding, Best-Performing Billionaire Plays

<!DOCTYPE html PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN" "http://www.w3.org/TR/REC-html40/loose.dtd">

December Quarter Earnings of Four Largest Industrial REITs

Singapore

ESR-REIT is a real estate investment trust that invests in and manages a diversified portfolio of income-producing industrial properties. These properties include logistics, high-specifications industrial, business parks, and general industrial assets across Singapore, Australia, and Japan. The company is headquartered in Singapore and was founded in 2006.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

ESR-REIT (EREIT SP)

New Significant Supportive Measures for S-REITs

MOF, IRAS & MAS have announced new measures for S-REITs – 1) distribution timeline extensions to qualify for tax transparency, 2) leverage...

Singapore Exchange Ltd (SGX)

Lendlease Global REIT: Unlocking Value, Driving Growth

With more than two decades of industry experience under his belt, Kelvin Chow has come to appreciate the convergence of art and...

Singapore Exchange Ltd (SGX)

Chartbook: SREITs & Property Trusts - October 2019

SGX is one of Asia’s regional hub for Real Estate Investment Trusts (REITs) & Property Trusts. Based on the FTSE ST REIT Index, the dividend...

Singapore Exchange Ltd (SGX)

Singapore’s Best-Yielding, Best-Performing Billionaire Plays

Singapore lists over 100 stocks with market cap above S$1 billion, out of which 36 have dividend yields of 4.5% and above, compared with the...

Singapore Exchange Ltd (SGX)

December Quarter Earnings of Four Largest Industrial REITs

Singapore Exchange Ltd (SGX)

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)