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

<ul><li>REIT Watch - Maiden acquisitions made by S-Reits in September The month of September also saw maiden acquisitions from Digital Core Reit and Daiwa House Logistics Trust since their respective initial public offerings (IPOs) in 2021.</li><li>Aside from these two, there were also several Japan acquisitions made by healthcare S-Reits last month, including ParkwayLife Reit and First Reit.</li></ul>

REIT Watch - Maiden acquisitions made by S-Reits in September The month of September also saw maiden acquisitions from Digital Core Reit and Daiwa House Logistics Trust since their respective initial public offerings (IPOs) in 2021.Aside from these two, there were also several Japan acquisitions made by healthcare S-Reits last month, including ParkwayLife Reit and First Reit.

REIT Watch - Maiden acquisitions made by S-Reits in September

First Real Estate Investment Trust / Equity Bottom-Up

First Real Estate Investment Trust (FIRT SP)

10 in 10 with First REIT - Balancing Growth and Stability

Far East Hospitality Trust / Equity Bottom-Up

<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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This year marks the 20th anniversary of the Singapore S-Reits and property trust sector with the first Reit - CapitaLand Mall Trust - listed in July 2002, followed by Ascendas Reit in November 2022.

Since then, the sector has evolved into the largest Reit market in Asia ex-Japan, with a mature ecosystem. As of end June 2022, Singapore lists 43 S-Reits with total market value exceeding S$110 billion and average dividend yield of 6.4 per cent. The sector’s market value has grown at a compounded annual growth rate of 13 per cent over the last 10 years.

Singapore Reits have also expanded and diversified beyond Singapore shores. Starting out with mainly local assets and a domestic investor base 20 years ago, the sector has evolved into a global Reit hub today with active international investor participation and foreign asset listings. To date, more than 80 per cent of the 43 S-Reits and property trusts hold overseas assets.

The sector has also welcomed many inaugural Reit listings with assets across various geographies and sub-sectors. Examples include First Reit and Lippo Malls Indonesia Retail Trust, which were the world’s first Indonesia healthcare and retail Reit listings respectively, Sasseur Reit, which was the world’s first China retail outlet mall Reit, as well as Ascendas India Trust, which was the world’s first India business park Reit.

Within Asia, the industry also welcomed the first Reit with pure US-located assets - Manulife US Reit, the first data centre Reit – Keppel DC Reit, as well as the first hospitality stapled trust – CDL Hospitality Trusts. 

As the ecosystem evolves, more listed products such as derivatives and exchange traded funds (ETFs) were launched on the asset class, allowing new segments of investors to participate. There are now 5 Reit ETFs with combined assets under management of more than S$870 million as well as Asia’s first international Reit futures listed on the SGX.

REIT Watch is a weekly column on The Business Times, <a href="https://www.businesstimes.com.sg/companies-markets/s-reits-property-trusts-mark-their-20th-year">read </a>the original version
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    REIT Watch - S-Reits, property trusts mark their 20th year

      
    
    REIT Watch - S-Reits, property trusts mark their 20th year


This year marks the 20th anniversary of the Singapore S-Reits and property trust sector with the first Reit - CapitaLand Mall Trust - listed in July 2002, followed by Ascendas Reit in November 2022.

Since then, the sector has evolved into the largest Reit market in Asia ex-Japan, with a mature ecosystem. As of end June 2022, Singapore lists 43 S-Reits with total market value exceeding S$110 billion and average dividend yield of 6.4 per cent. The sector’s market value has grown at a compounded annual growth rate of 13 per cent over the last 10 years.

Singapore Reits have also expanded and diversified beyond Singapore shores. Starting out with mainly local assets and a domestic investor base 20 years ago, the sector has evolved into a global Reit hub today with active international investor participation and foreign asset listings. To date, more than 80 per cent of the 43 S-Reits and property trusts hold overseas assets.

The sector has also welcomed many inaugural Reit listings with assets across various geographies and sub-sectors. Examples include First Reit and Lippo Malls Indonesia Retail Trust, which were the world’s first Indonesia healthcare and retail Reit listings respectively, Sasseur Reit, which was the world’s first China retail outlet mall Reit, as well as Ascendas India Trust, which was the world’s first India business park Reit.

Within Asia, the industry also welcomed the first Reit with pure US-located assets - Manulife US Reit, the first data centre Reit – Keppel DC Reit, as well as the first hospitality stapled trust – CDL Hospitality Trusts. 

As the ecosystem evolves, more listed products such as derivatives and exchange traded funds (ETFs) were launched on the asset class, allowing new segments of investors to participate. There are now 5 Reit ETFs with combined assets under management of more than S$870 million as well as Asia’s first international Reit futures listed on the SGX.

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



REIT Watch - S-Reits, property trusts mark their 20th year

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Singapore lists 2 actively traded Healthcare related S-Reits – ParkwayLife Reit and First Reit. Healthcare Reits invest in income-producing real estate primarily used for healthcare related purposes including but not limited to hospitals, medical offices, outpatient facilities and nursing facilities. As such, these Reits may be regarded as an option for investors to gain exposure to the growing and resilient healthcare sector.

ParkwayLife Reit is one of the largest listed healthcare Reits in Asia with a portfolio of 56 properties at S$2.29 billion in size. It has 64.6 per cent of its portfolio in hospitals and medical centres, and 35.4 per cent in nursing homes, across Singapore (64.3 per cent), Japan (35.4 per cent), and Malaysia (0.3 per cent).

ParkwayLife Reit reported 2.3 per cent year-on-year higher gross revenue for Q1 2022, arising from the3 properties it acquired last year and higher rent received from Singapore hospitals. The Reit noted that its distribution per unit (DPU) has grown steadily at a rate of 122.8 per cent since its listing.

In its Singapore portfolio (hospitals include Mouth Elizabeth Hospital, Parkway East Hospital, and Gleneagles Hospital), its master lessee Parkway Hospitals Singapore, is a wholly owned subsidiary of IHH Health which is one of the world’s largest healthcare networks with 80 hospitals in 10 countries. Its latest renewal term of 20.4 years runs from Aug 23, 2022 to Dec 31, 2042, with an option to renew for a further 10 years. It has a triple net lease arrangement which means that the Reit does not bear property taxes, property insurance, property operating expenses and is unaffected by inflated-related escalating expenses.

In its Japan portfolio, it owns 52 nursing home properties with a weighted average lease term to expiry of 11.79 years and a diversified tenant base across 28 nursing home operators. Based on its existing lease arrangements, about 95.2 per cent of its Japan portfolio is downside-protected.

First Reit has a portfolio of 31 properties comprising 16 in Indonesia, 3 in Singapore and 12 in Japan with a combined size exceeding S$1.2 billion. Its Reit manager is 60 per cent owned by OUE Limited and 40 per cent owned by OUE Lippo Healthcare (OUELH). As such, the Reit has rights-of-first refusal to a pipeline of properties from PT Lippo Karawaci Tbk and OUELH.

First Reit in its Q1 2022 business update reported 34.9 per cent year-on-year growth in net property and other income and 1.5 per cent growth in DPU paid (0.66 Singapore cents for Q1 2022). Following its maiden entry into Japan with the acquisition of 12 nursing homes, First Reit noted that it has successfully taken the first step of its First Reit 2.0 Growth Strategy to expand into developed markets and diversify geographical risk.

First Reit’s Indonesia hospital operator, PT Siloam International Hospitals Tbk reported stable quarter-on-quarter performance for Q1 2022 despite the impact of the Omicron variant. First Reit’s nursing homes in Japan and Singapore also noted high occupancy rates and the Reit remains confident of the resilient healthcare market in its operating markets.

REIT Watch is a weekly column on The Business Times, <a href="https://www.businesstimes.com.sg/companies-markets/healthcare-s-reits-see-stable-growth-and-resilience">read </a>the original version.
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    REIT Watch 13 Jun


Singapore lists 2 actively traded Healthcare related S-Reits – ParkwayLife Reit and First Reit. Healthcare Reits invest in income-producing real estate primarily used for healthcare related purposes including but not limited to hospitals, medical offices, outpatient facilities and nursing facilities. As such, these Reits may be regarded as an option for investors to gain exposure to the growing and resilient healthcare sector.

ParkwayLife Reit is one of the largest listed healthcare Reits in Asia with a portfolio of 56 properties at S$2.29 billion in size. It has 64.6 per cent of its portfolio in hospitals and medical centres, and 35.4 per cent in nursing homes, across Singapore (64.3 per cent), Japan (35.4 per cent), and Malaysia (0.3 per cent).

ParkwayLife Reit reported 2.3 per cent year-on-year higher gross revenue for Q1 2022, arising from the3 properties it acquired last year and higher rent received from Singapore hospitals. The Reit noted that its distribution per unit (DPU) has grown steadily at a rate of 122.8 per cent since its listing.

In its Singapore portfolio (hospitals include Mouth Elizabeth Hospital, Parkway East Hospital, and Gleneagles Hospital), its master lessee Parkway Hospitals Singapore, is a wholly owned subsidiary of IHH Health which is one of the world’s largest healthcare networks with 80 hospitals in 10 countries. Its latest renewal term of 20.4 years runs from Aug 23, 2022 to Dec 31, 2042, with an option to renew for a further 10 years. It has a triple net lease arrangement which means that the Reit does not bear property taxes, property insurance, property operating expenses and is unaffected by inflated-related escalating expenses.

In its Japan portfolio, it owns 52 nursing home properties with a weighted average lease term to expiry of 11.79 years and a diversified tenant base across 28 nursing home operators. Based on its existing lease arrangements, about 95.2 per cent of its Japan portfolio is downside-protected.

First Reit has a portfolio of 31 properties comprising 16 in Indonesia, 3 in Singapore and 12 in Japan with a combined size exceeding S$1.2 billion. Its Reit manager is 60 per cent owned by OUE Limited and 40 per cent owned by OUE Lippo Healthcare (OUELH). As such, the Reit has rights-of-first refusal to a pipeline of properties from PT Lippo Karawaci Tbk and OUELH.

First Reit in its Q1 2022 business update reported 34.9 per cent year-on-year growth in net property and other income and 1.5 per cent growth in DPU paid (0.66 Singapore cents for Q1 2022). Following its maiden entry into Japan with the acquisition of 12 nursing homes, First Reit noted that it has successfully taken the first step of its First Reit 2.0 Growth Strategy to expand into developed markets and diversify geographical risk.

First Reit’s Indonesia hospital operator, PT Siloam International Hospitals Tbk reported stable quarter-on-quarter performance for Q1 2022 despite the impact of the Omicron variant. First Reit’s nursing homes in Japan and Singapore also noted high occupancy rates and the Reit remains confident of the resilient healthcare market in its operating markets.

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



REIT Watch - Healthcare S-Reits see stable growth and resilience

Singapore

First Real Estate Investment Trust is a Singapore-based healthcare real estate investment trust. It invests in a diversified portfolio of income-producing real estate and related assets in Asia, primarily used for healthcare and healthcare-related purposes, including hospitals and nursing homes. The Trust was listed on the SGX-ST in December 2006 and is headquartered in Singapore.

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First Real Estate Investment Trust (FIRT SP)

REIT Watch - Maiden acquisitions made by S-Reits in September

REIT Watch - Maiden acquisitions made by S-Reits in September The month of September also saw maiden acquisitions from Digital Core Reit and Daiwa...

Singapore Exchange Ltd (SGX)

10 in 10 with First REIT - Balancing Growth and Stability

10 in 10 with First REIT - Balancing Growth and Stability

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, property trusts mark their 20th year

This year marks the 20th anniversary of the Singapore S-Reits and property trust sector with the first Reit -...

Singapore Exchange Ltd (SGX)

REIT Watch - Healthcare S-Reits see stable growth and resilience

Singapore lists 2 actively traded Healthcare related S-Reits – ParkwayLife Reit and First Reit. Healthcare Reits invest in...

Singapore Exchange Ltd (SGX)

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