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

Acrophyte Hospitality Trust / Equity Bottom-Up

<ul><li>Of the 30 S-REITs which have declared full year 2022 distributions, median change in distribution per unit (DPU) increased marginally by 0.2 per cent year-on-year (y-o-y).</li><li>The five trusts with the highest y-o-y DPU increments for FY22 are: ARA US Hospitality Trust (760 per cent), Paragon REIT (34 per cent), CDL Hospitality Trusts (32 per cent), CapitaLand Ascott Trust (31 per cent) and Far East Hospitality Trust (24 per cent).</li><li>CDL Hospitality Trusts (CDLHT) declared a DPS of 5.63 Singapore cents for FY22, up 31.9 per cent y-o-y.</li></ul>

Of the 30 S-REITs which have declared full year 2022 distributions, median change in distribution per unit (DPU) increased marginally by 0.2 per cent year-on-year (y-o-y).The five trusts with the highest y-o-y DPU increments for FY22 are: ARA US Hospitality Trust (760 per cent), Paragon REIT (34 per cent), CDL Hospitality Trusts (32 per cent), CapitaLand Ascott Trust (31 per cent) and Far East Hospitality Trust (24 per cent).CDL Hospitality Trusts (CDLHT) declared a DPS of 5.63 Singapore cents for FY22, up 31.9 per cent y-o-y.

REIT Watch – Hospitality S-REITs’ DPU rebound 32% in 2022

Far East Hospitality Trust / Equity Bottom-Up

<ul><li>REIT Watch - Hospitality S-Reits ride on pent-up travel demand and the return of events in Q3 2022 All hospitality trusts with Singapore assets observed significant improvements in occupancy and RevPAR (revenue per available room) in the last quarter, driven by the return of large-scale events and the Mice (meetings, incentives, conventions and exhibitions) industry, alongside pent-up demand for overseas travels.</li><li>Far East Hospitality Trust recorded that its Q3 2022 gross revenue increased 2.0 per cent yoy, led by growth from the hotel segment which increased 4.7 per cent.</li><li>Income available for distribution grew 12.0 per cent yoy from higher NPI and interest income.</li></ul>

REIT Watch - Hospitality S-Reits ride on pent-up travel demand and the return of events in Q3 2022 All hospitality trusts with Singapore assets observed significant improvements in occupancy and RevPAR (revenue per available room) in the last quarter, driven by the return of large-scale events and the Mice (meetings, incentives, conventions and exhibitions) industry, alongside pent-up demand for overseas travels.Far East Hospitality Trust recorded that its Q3 2022 gross revenue increased 2.0 per cent yoy, led by growth from the hotel segment which increased 4.7 per cent.Income available for distribution grew 12.0 per cent yoy from higher NPI and interest income.

REIT Watch - Hospitality S-REITs ride on pent-up travel demand and the return of events in 3Q22 

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

<ul><li>REIT Watch - SGTI 2022 shows more S-Reits reporting non-financial metrics S-Reits and business trusts see an improvement in their Singapore Governance and Transparency Index (SGTI) 2022 scores, increasing marginally to 85.3 points from 85.0 last year.</li><li>Overall, the mean score of the Reits and business trust category increased by 0.3 points year on year and the mean bonus points for good disclosure practices increased by 0.7 points to 19.2 points.</li></ul>

REIT Watch - SGTI 2022 shows more S-Reits reporting non-financial metrics S-Reits and business trusts see an improvement in their Singapore Governance and Transparency Index (SGTI) 2022 scores, increasing marginally to 85.3 points from 85.0 last year.Overall, the mean score of the Reits and business trust category increased by 0.3 points year on year and the mean bonus points for good disclosure practices increased by 0.7 points to 19.2 points.

REIT Watch - SGTI 2022 shows more S-Reits reporting non-financial metrics

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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

Singapore

Far East Hospitality Trust is a Singapore-based stapled group that invests in a diversified portfolio of income-producing hospitality, hospitality-related, and other accommodation and lodging real estate. Its portfolio primarily comprises hotels and serviced residences located in Singapore and Japan. The Trust was listed on the Singapore Exchange on August 27, 2012, and is headquartered in Singapore.

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Far East Hospitality Trust (FEHT SP)

REIT Watch – Hospitality S-REITs’ DPU rebound 32% in 2022

Of the 30 S-REITs which have declared full year 2022 distributions, median change in distribution per unit (DPU) increased marginally by 0.2 per...

Singapore Exchange Ltd (SGX)

REIT Watch - Hospitality S-REITs ride on pent-up travel demand and the return of events in 3Q22

REIT Watch - Hospitality S-Reits ride on pent-up travel demand and the return of events in Q3 2022 All hospitality trusts with Singapore assets...

Singapore Exchange Ltd (SGX)

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

REIT Watch - Hospitality S-Reits ride on pent-up travel demand and the return of events in Q3 2022 All hospitality trusts with Singapore assets...

Singapore Exchange Ltd (SGX)

REIT Watch - SGTI 2022 shows more S-Reits reporting non-financial metrics

REIT Watch - SGTI 2022 shows more S-Reits reporting non-financial metrics S-Reits and business trusts see an improvement in their Singapore...

Singapore Exchange Ltd (SGX)

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

The iEdge S-Reit Index held resilient for the first half of 2022, generating flat total returns compared to the FTSE EPRA...

Singapore Exchange Ltd (SGX)

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