Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

Frasers Centrepoint Trust / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/frasers-centrepoint-trust" target="_blank" data-smartkarma-citation="entities:2870:1" rel="noopener">Frasers Centrepoint Trust (FCT SP)</a> aims to raise around US$152m in order to partly fund its purchase of an additional stake in NEX mall.</li>
<li>The company had purchased its initial stake in the property nearly a year ago.</li>
<li>In this note, we comment on the deal dynamics and run the deal through our ECM framework.</li>
</ul>



Frasers Centrepoint Trust (FCT SP) aims to raise around US$152m in order to partly fund its purchase of an additional stake in NEX mall.
The company had purchased its initial stake in the property nearly a year ago.
In this note, we comment on the deal dynamics and run the deal through our ECM framework.


Frasers Centrepoint Trust Placement - Relative Large Dilution for Smallish Accretion

Mapletree Logistics Trust / Equity Capital Markets

<ul>
<li>Mapletree Logistics Trust (MLT SP) plans to raise around US$150 (S$200m) to partially fund the acquisition of logistics properties in Japan, Australia and South Korea.</li>
<li>We have earlier covered the previous six placements for the REIT since 2017. Most of the past deals have done well except for the two most recent ones.</li>
<li>In this note, we will run the deal through our ECM framework and talk about deal dynamics.</li>
</ul>


Mapletree Logistics Trust (MLT SP) plans to raise around US$150 (S$200m) to partially fund the acquisition of logistics properties in Japan, Australia and South Korea.
We have earlier covered the previous six placements for the REIT since 2017. Most of the past deals have done well except for the two most recent ones.
In this note, we will run the deal through our ECM framework and talk about deal dynamics.


MLT Placement - Small Deal but Recent Deals Didn’t Do Well

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

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

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

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

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

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

Equity Bottom-Up

Frasers Hospitality Trust / Equity Bottom-Up

<figure>
 <img src='https://api2.sgx.com/sites/default/files/2021-05/Capture_20.PNG' alt='Frasers Group' />
 </figure>
 <div class='content-caption'>Frasers Group</div>
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FRASERS Property is one of Singapore's largest property groups with S$39.2 billion in total assets as at March 31, 2021.

The group develops, owns and manages an integrated portfolio of properties across residential, hospitality, retail, commercial and business parks, and in industrial and logistics sectors across Asia, Australia, Europe, the Middle East and Africa, and China.

With a S$4.6 billion market capitalisation, Frasers Property is the sponsor of three SGX-listed trusts - Frasers Centrepoint Trust (FCT), Frasers Logistics &amp; Commercial Trust (FLCT), and Frasers Hospitality Trust (FHT).

FLCT has 97 logistics, industrial and commercial properties across Australia, Singapore, Germany, the UK and the Netherlands. 
The Reit achieved a record revenue of S$231.7 million and adjusted net property income (NPI) of S$173.9 million, representing increases of 95.1 per cent and 79.3 per cent year-on-year respectively in H1FY21, mainly from the merger with Frasers Commercial Trust last April. 
It announced 3.80 cents in distribution per unit (DPU), up 9.5 per cent year-on-year, and a portfolio occupancy rate of 96.8 per cent.

Its majority exposure to resilient sub-sectors industrial and logistics (at 58.3 per cent of its portfolio value) amid the pandemic can be seen in the Reit's 37.8 per cent total returns in the past one year. It is the second best performing among S-Reits.

FLCT entered the Straits Times Index in April 2021 and has obtained a BBB+ with stable outlook credit rating from S&amp;P Global Ratings.

FCT is one of Singapore's largest suburban retail landlords with 10 malls with a total AUM of S$6.4 billion.

The Reit reported 73.8 per cent growth in both revenue and NPI for H1FY21 at S$173.6 million and S$125.7 million respectively, mainly from its latest AsiaRetail Fund portfolio. The Reit announced a DPU of 5.996 cents, 28.4 per cent higher year-on-year.

It noted that tenants' sales have recovered to near pre-Covid-19 levels, despite shopper traffic still lagging due to safe distancing measures. Its retail portfolio occupancy has held up at 96.1 per cent and average reversion was at -0.7 per cent.

FCT recently announced that the property owner of Waterway Point, of which it owns 40 per cent, has been awarded its first green loan of S$589 million, lifting FCT's proportion of green loans to 18 per cent.

FHT is a global hotel and serviced residence trust with 15 properties across nine cities and an appraised portfolio value of S$2.25 billion as at Sept 30, 2020.

In its H1FY21 results, the trust reported year-on-year declines of 36.2 per cent and 40.9 per cent in revenue and NPI respectively, as the sector continues to be affected by the pandemic.

However, on a half-year comparison, FHT has shown signs of improvement with 53.8 per cent and 83.5 per cent increases in revenue and NPI respectively, driven by better performance in its Australia portfolio.

The trust retained 60 per cent of its distributable income and reported lower distribution per stapled security of 0.179 cents.

FHT believes that domestic tourism may recover faster than international tourism given the pent-up demand for travel and views countries where it has a presence in such as Australia, Japan and the UK, to be best positioned for earlier recovery.  REIT Watch is a weekly column on The Business Times,<a href="https://www.businesstimes.com.sg/companies-markets/china-poised-to-drive-economic-growth"> </a><a href="https://www.businesstimes.com.sg/companies-markets/growing-sustainably-with-frasers-s-reits">read</a><a href="https://www.businesstimes.com.sg/companies-markets/bulk-of-s-reits-in-key-global-real-estate-indices"> </a>the original version.
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    Frasers Group


FRASERS Property is one of Singapore's largest property groups with S$39.2 billion in total assets as at March 31, 2021.

The group develops, owns and manages an integrated portfolio of properties across residential, hospitality, retail, commercial and business parks, and in industrial and logistics sectors across Asia, Australia, Europe, the Middle East and Africa, and China.

With a S$4.6 billion market capitalisation, Frasers Property is the sponsor of three SGX-listed trusts - Frasers Centrepoint Trust (FCT), Frasers Logistics &amp; Commercial Trust (FLCT), and Frasers Hospitality Trust (FHT).

FLCT has 97 logistics, industrial and commercial properties across Australia, Singapore, Germany, the UK and the Netherlands.  
The Reit achieved a record revenue of S$231.7 million and adjusted net property income (NPI) of S$173.9 million, representing increases of 95.1 per cent and 79.3 per cent year-on-year respectively in H1FY21, mainly from the merger with Frasers Commercial Trust last April.  
It announced 3.80 cents in distribution per unit (DPU), up 9.5 per cent year-on-year, and a portfolio occupancy rate of 96.8 per cent.

Its majority exposure to resilient sub-sectors industrial and logistics (at 58.3 per cent of its portfolio value) amid the pandemic can be seen in the Reit's 37.8 per cent total returns in the past one year. It is the second best performing among S-Reits.

FLCT entered the Straits Times Index in April 2021 and has obtained a BBB+ with stable outlook credit rating from S&amp;P Global Ratings.

FCT is one of Singapore's largest suburban retail landlords with 10 malls with a total AUM of S$6.4 billion.

The Reit reported 73.8 per cent growth in both revenue and NPI for H1FY21 at S$173.6 million and S$125.7 million respectively, mainly from its latest AsiaRetail Fund portfolio. The Reit announced a DPU of 5.996 cents, 28.4 per cent higher year-on-year.

It noted that tenants' sales have recovered to near pre-Covid-19 levels, despite shopper traffic still lagging due to safe distancing measures. Its retail portfolio occupancy has held up at 96.1 per cent and average reversion was at -0.7 per cent.

FCT recently announced that the property owner of Waterway Point, of which it owns 40 per cent, has been awarded its first green loan of S$589 million, lifting FCT's proportion of green loans to 18 per cent.

FHT is a global hotel and serviced residence trust with 15 properties across nine cities and an appraised portfolio value of S$2.25 billion as at Sept 30, 2020.

In its H1FY21 results, the trust reported year-on-year declines of 36.2 per cent and 40.9 per cent in revenue and NPI respectively, as the sector continues to be affected by the pandemic.

However, on a half-year comparison, FHT has shown signs of improvement with 53.8 per cent and 83.5 per cent increases in revenue and NPI respectively, driven by better performance in its Australia portfolio.

The trust retained 60 per cent of its distributable income and reported lower distribution per stapled security of 0.179 cents.

FHT believes that domestic tourism may recover faster than international tourism given the pent-up demand for travel and views countries where it has a presence in such as Australia, Japan and the UK, to be best positioned for earlier recovery.   REIT Watch is a weekly column on The Business Times, read the original version.



REIT Watch - Growing sustainably with Frasers' S-Reits

Frasers Commercial Trust / Equity Bottom-Up

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<ul>
<li>
The rise of sustainable finance saw global sustainable debt issuance surpass US$700 billion in 2020. Investor focus on sustainable debt has expanded in recent years to include instruments such as sustainability-linked and social bonds, as well as green and sustainable-linked loans. While green or sustainability linked loan opens more avenues of funding, it also serves as a signal to investors on the firm’s commitment towards environment and sustainable business practices. 
	 </li>
	<li>
S-REITs and Property Trusts secured new or refinanced green and/or sustainability-linked loans since the start of 2020, totaling more than S$2 billion in loan, of which close to 54% are green loans and rest are sustainability-linked loans. 
	 </li>
	<li>In 2021, Far East Hospitality Trust, Manulife US REIT, Mapletree Logistics Trust, Mapletree North Asia Commercial Trust and Ascott Residence Trust have all secured green or sustainability-linked loans. Proceeds are mostly used to finance general working capital or green certified properties. </li>
</ul>
 

In 2020, global sustainable debt issuance surpassed US$700 billion, up from US$566 billion in 2019 (according to Bloomberg). The notion of sustainable debt, which started off with an initial focus on green bonds, has evolved tremendously in the last few years. The scope of sustainable debt has expanded to include instruments such as sustainability-linked and social bonds, as well as green and sustainable-linked loans.
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<figure>
 <img src='https://api2.sgx.com/sites/default/files/2021-03/Capture_11.PNG' alt='Global Sustainable Debt Issuance' />
 </figure>
 <div class='content-caption'>Global Sustainable Debt Issuance</div>
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To encourage corporates to adopt sustainable business practices, provide them with access to green financing and anchor deep green finance expertise in Singapore, the Monetary Authority of Singapore (“MAS”) introduced a new Green and Sustainability-Linked Loan Grant Scheme (“GSLS”), effective since January 2021. The first of its kind globally, the GSLS supports corporates of all sizes to obtain green and sustainable financing by defraying the expenses of engaging independent sustainability advisory and assessment service providers to validate the green and sustainability credentials of the loan (click <a href="https://www.mas.gov.sg/schemes-and-initiatives/green-and-sustainability-linked-loans-grant">here</a> for more information on the GSLS).  
 

<ul>
<li>
Green loans are generally structured in the same way as standard loans except that proceeds from green loans are tracked and used for specific green projects which met certain benchmarked criteria.</li>
	<li>
Sustainability-linked loans generally do not restrict the use of proceeds but borrowers will have to commit to sustainability performance targets, and are awarded a reduction in interest rates if their sustainability targets are met. Therefore, sustainability-linked loans align companies to broad investor sustainability expectations and allow access to a wider range of companies who might not have specific green projects or funding needs. 
	 </li>
</ul>
While green or sustainability linked loan opens more avenues of funding, it also serves as a signal to investors on the firm’s commitment towards environment and sustainable business practices. 
As many as 12 Singapore REITs and Property Trusts have secured new or refinanced their green and/or sustainability-linked loans since the start of 2020 to 30 March 2021. Together, the 12 S-REITs obtained more than S$2 billion in loan amount, of which close to 54% are in the form of green loans while the other 46% are sustainability-linked loans. Recent green and sustainability-linked loans by Singapore REITs and Property Trust 
In March 2021, <a href="https://www.sgx.com/securities/equities/BTOU">Manulife US REIT</a> (“MUST”) obtained its first sustainability-linked loan of US$250 million from DBS and OCBC. Loan terms incorporate interest rate reductions linked to the achievement of predetermined sustainability performance targets, including efficient use of energy and water, and management of greenhouse gas (GHG) emissions, in relation to MUST’s nine office properties in the U.S. Back in May 2020, MUST also obtained its maiden green loan of US$100 million of which proceeds will be primarily used to refinance Peachtree, a 27-storey Class A office building located in Midtown, Atlanta. <a href="https://www.sgx.com/securities/equities/HMN">Ascott Residence Trust</a> (“ART”) also secured its maiden green loan in January 2021. The S$50 million five-year green loan from DBS made ART the first hospitality trust in Singapore to secure a green loan. ART noted that proceeds from the green loan will be used to finance its maiden development project and co-living property, lyf one-north Singapore. lyf one-north Singapore is one of ART’s 15 properties that attained green certifications in 2020, bringing the total number of ART’s green properties to 21. 
All four of Mapletree-sponsored REITs have existing green and/or sustainability-linked loans. More recently, in 2021, both <a href="https://www.sgx.com/securities/equities/M44U">Mapletree Logistics Trust</a> (“MLT”) and <a href="https://www.sgx.com/securities/equities/RW0U">Mapletree North Asia Commercial Trust</a> (“MNACT”) have secured new green loan facilities while <a href="https://www.sgx.com/securities/equities/ME8U">Mapletree Industrial Trust</a> (“MIT”) obtained its inaugural S$300 million sustainability-linked loan back in December 2020. <a href="https://www.sgx.com/securities/equities/N2IU">Mapletree Commercial Trust</a> (“MCT”) entered into a green loan facility in June 2020 to refinance loans relating to MCT’s properties which have been certified BCA Green Mark Gold or better. This follows MCT’s first S$670 million green loan in 2019 to part finance its acquisition of Mapletree Business City (Phase 2). List of Singapore REITs and Property Trusts with new Green and/or Sustainability-linked loans since Jan 2020

<table class="table table-striped"><tbody>
<tr>
<td>
			Name
			</td>
			<td>
			Code
			</td>
			<td>
			Loan Types
			</td>
			<td>
			Aggregated Loan Amount
			</td>
			<td>
			Mkt Cap S$M
			</td>
			<td>
			Dividend Yield (%)
			</td>
		</tr>
<tr>
<td>
			Ascott Residence Trust
			</td>
			<td>
			HMN
			</td>
			<td>
			Green Loan
			</td>
			<td>
			S$50m
			</td>
			<td>
			3,363
			</td>
			<td>
			2.8%
			</td>
		</tr>
<tr>
<td>
			CapitaLand Integrated Commercial Trust
			</td>
			<td>
			C38U
			</td>
			<td>
			Sustainability-linked1
			</td>
			<td>
			S$200m
			</td>
			<td>
			13,853
			</td>
			<td>
			5.4%
			</td>
		</tr>
<tr>
<td>
			Far East Hospitality Trust
			</td>
			<td>
			Q5T
			</td>
			<td>
			Sustainability-linked
			</td>
			<td>
			S$125m
			</td>
			<td>
			1,237
			</td>
			<td>
			5.3%
			</td>
		</tr>
<tr>
<td>
			Frasers Industrial and Commercial Trust
			</td>
			<td>
			BUOU
			</td>
			<td>
			Sustainability-linked2
			</td>
			<td>
			S$100m
			</td>
			<td>
			4,903
			</td>
			<td>
			4.8%
			</td>
		</tr>
<tr>
<td>
			Keppel REIT
			</td>
			<td>
			K71U
			</td>
			<td>
			Green Loan
			</td>
			<td>
			A$300m
			</td>
			<td>
			4,505
			</td>
			<td>
			3.1%
			</td>
		</tr>
<tr>
<td>
			Manulife US REIT
			</td>
			<td>
			BTOU
			</td>
			<td>
			Sustainability-linked &amp; Green Loan
			</td>
			<td>
			US$350m
			</td>
			<td>
			1,553
			</td>
			<td>
			7.6%
			</td>
		</tr>
<tr>
<td>
			Mapletree Commercial Trust
			</td>
			<td>
			N2IU
			</td>
			<td>
			Green Loan
			</td>
			<td>
			Not Available3
			</td>
			<td>
			6,997
			</td>
			<td>
			3.9%
			</td>
		</tr>
<tr>
<td>
			Mapletree Industrial Trust
			</td>
			<td>
			ME8U
			</td>
			<td>
			Sustainability-linked
			</td>
			<td>
			S$300m
			</td>
			<td>
			6,442
			</td>
			<td>
			4.4%
			</td>
		</tr>
<tr>
<td>
			Mapletree Logistics Trust
			</td>
			<td>
			M44U
			</td>
			<td>
			Green Loan
			</td>
			<td>
			S$200m4
			</td>
			<td>
			8,267
			</td>
			<td>
			4.1%
			</td>
		</tr>
<tr>
<td>
			Mapletree North Asia Commercial Trust
			</td>
			<td>
			RW0U
			</td>
			<td>
			Green Loan
			</td>
			<td>
			Not Available3
			</td>
			<td>
			3,503
			</td>
			<td>
			7.0%
			</td>
		</tr>
<tr>
<td>
			Soilbuild Business Space REIT
			</td>
			<td>
			SV3U
			</td>
			<td>
			Green Loan
			</td>
			<td>
			S$80m
			</td>
			<td>
			683
			</td>
			<td>
			7.3%
			</td>
		</tr>
<tr>
<td>
			Suntec REIT
			</td>
			<td>
			T82U
			</td>
			<td>
			Green Loan
			</td>
			<td>
			A$450m
			</td>
			<td>
			4,455
			</td>
			<td>
			4.7%
			</td>
		</tr>
</tbody></table>
 1Loan made under CapitaLand Mall Trust before merger

2Loan made under Frasers Commercial Trust before merger

3Actual loan amount not disclosed

4Two new green loans made during the period, loan amount unavailable for most recent loan in Mar 2021

Source: Company Announcements, Bloomberg (Data as of 30 Mar 2021)
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The rise of sustainable finance saw global sustainable debt issuance surpass US$700 billion in 2020. Investor focus on sustainable debt has expanded in recent years to include instruments such as sustainability-linked and social bonds, as well as green and sustainable-linked loans. While green or sustainability linked loan opens more avenues of funding, it also serves as a signal to investors on the firm’s commitment towards environment and sustainable business practices. 
	 
	
S-REITs and Property Trusts secured new or refinanced green and/or sustainability-linked loans since the start of 2020, totaling more than S$2 billion in loan, of which close to 54% are green loans and rest are sustainability-linked loans.  
	 
	In 2021, Far East Hospitality Trust, Manulife US REIT, Mapletree Logistics Trust, Mapletree North Asia Commercial Trust and Ascott Residence Trust have all secured green or sustainability-linked loans. Proceeds are mostly used to finance general working capital or green certified properties. 

 

In 2020, global sustainable debt issuance surpassed US$700 billion, up from US$566 billion in 2019 (according to Bloomberg). The notion of sustainable debt, which started off with an initial focus on green bonds, has evolved tremendously in the last few years. The scope of sustainable debt has expanded to include instruments such as sustainability-linked and social bonds, as well as green and sustainable-linked loans.



      
    
    Global Sustainable Debt Issuance


To encourage corporates to adopt sustainable business practices, provide them with access to green financing and anchor deep green finance expertise in Singapore, the Monetary Authority of Singapore (“MAS”) introduced a new Green and Sustainability-Linked Loan Grant Scheme (“GSLS”), effective since January 2021. The first of its kind globally, the GSLS supports corporates of all sizes to obtain green and sustainable financing by defraying the expenses of engaging independent sustainability advisory and assessment service providers to validate the green and sustainability credentials of the loan (click here for more information on the GSLS).  
 



Green loans are generally structured in the same way as standard loans except that proceeds from green loans are tracked and used for specific green projects which met certain benchmarked criteria.
	
Sustainability-linked loans generally do not restrict the use of proceeds but borrowers will have to commit to sustainability performance targets, and are awarded a reduction in interest rates if their sustainability targets are met. Therefore, sustainability-linked loans align companies to broad investor sustainability expectations and allow access to a wider range of companies who might not have specific green projects or funding needs. 
	 

While green or sustainability linked loan opens more avenues of funding, it also serves as a signal to investors on the firm’s commitment towards environment and sustainable business practices.  
As many as 12 Singapore REITs and Property Trusts have secured new or refinanced their green and/or sustainability-linked loans since the start of 2020 to 30 March 2021. Together, the 12 S-REITs obtained more than S$2 billion in loan amount, of which close to 54% are in the form of green loans while the other 46% are sustainability-linked loans.  Recent green and sustainability-linked loans by Singapore REITs and Property Trust  
In March 2021, Manulife US REIT (“MUST”) obtained its first sustainability-linked loan of US$250 million from DBS and OCBC. Loan terms incorporate interest rate reductions linked to the achievement of predetermined sustainability performance targets, including efficient use of energy and water, and management of greenhouse gas (GHG) emissions, in relation to MUST’s nine office properties in the U.S. Back in May 2020, MUST also obtained its maiden green loan of US$100 million of which proceeds will be primarily used to refinance Peachtree, a 27-storey Class A office building located in Midtown, Atlanta.  Ascott Residence Trust (“ART”) also secured its maiden green loan in January 2021. The S$50 million five-year green loan from DBS made ART the first hospitality trust in Singapore to secure a green loan. ART noted that proceeds from the green loan will be used to finance its maiden development project and co-living property, lyf one-north Singapore. lyf one-north Singapore is one of ART’s 15 properties that attained green certifications in 2020, bringing the total number of ART’s green properties to 21.  
All four of Mapletree-sponsored REITs have existing green and/or sustainability-linked loans. More recently, in 2021, both Mapletree Logistics Trust (“MLT”) and Mapletree North Asia Commercial Trust (“MNACT”) have secured new green loan facilities while Mapletree Industrial Trust (“MIT”) obtained its inaugural S$300 million sustainability-linked loan back in December 2020. Mapletree Commercial Trust (“MCT”) entered into a green loan facility in June 2020 to refinance loans relating to MCT’s properties which have been certified BCA Green Mark Gold or better. This follows MCT’s first S$670 million green loan in 2019 to part finance its acquisition of Mapletree Business City (Phase 2).  List of Singapore REITs and Property Trusts with new Green and/or Sustainability-linked loans since Jan 2020




			Name
			
			
			Code
			
			
			Loan Types
			
			
			Aggregated Loan Amount
			
			
			Mkt Cap S$M
			
			
			Dividend Yield (%)
			
		


			Ascott Residence Trust
			
			
			HMN
			
			
			Green Loan
			
			
			S$50m
			
			
			3,363
			
			
			2.8%
			
		


			CapitaLand Integrated Commercial Trust
			
			
			C38U
			
			
			Sustainability-linked1
			
			
			S$200m
			
			
			13,853
			
			
			5.4%
			
		


			Far East Hospitality Trust
			
			
			Q5T
			
			
			Sustainability-linked
			
			
			S$125m
			
			
			1,237
			
			
			5.3%
			
		


			Frasers Industrial and Commercial Trust
			
			
			BUOU
			
			
			Sustainability-linked2
			
			
			S$100m
			
			
			4,903
			
			
			4.8%
			
		


			Keppel REIT
			
			
			K71U
			
			
			Green Loan
			
			
			A$300m
			
			
			4,505
			
			
			3.1%
			
		


			Manulife US REIT
			
			
			BTOU
			
			
			Sustainability-linked &amp; Green Loan
			
			
			US$350m
			
			
			1,553
			
			
			7.6%
			
		


			Mapletree Commercial Trust
			
			
			N2IU
			
			
			Green Loan
			
			
			Not Available3
			
			
			6,997
			
			
			3.9%
			
		


			Mapletree Industrial Trust
			
			
			ME8U
			
			
			Sustainability-linked
			
			
			S$300m
			
			
			6,442
			
			
			4.4%
			
		


			Mapletree Logistics Trust
			
			
			M44U
			
			
			Green Loan
			
			
			S$200m4
			
			
			8,267
			
			
			4.1%
			
		


			Mapletree North Asia Commercial Trust
			
			
			RW0U
			
			
			Green Loan
			
			
			Not Available3
			
			
			3,503
			
			
			7.0%
			
		


			Soilbuild Business Space REIT
			
			
			SV3U
			
			
			Green Loan
			
			
			S$80m
			
			
			683
			
			
			7.3%
			
		


			Suntec REIT
			
			
			T82U
			
			
			Green Loan
			
			
			A$450m
			
			
			4,455
			
			
			4.7%
			
		

 1Loan made under CapitaLand Mall Trust before merger

2Loan made under Frasers Commercial Trust before merger

3Actual loan amount not disclosed

4Two new green loans made during the period, loan amount unavailable for most recent loan in Mar 2021

Source: Company Announcements, Bloomberg (Data as of 30 Mar 2021)



S-REITs secured over S$2 billion of green and sustainability-linked loans since 2020

Frasers Logistics & Commercial Trust / Equity Bottom-Up

<figure>
 <img src='https://api2.sgx.com/sites/default/files/2020-12/FLCT-CEO.jpg' alt='Robert Wallace' />
 </figure>
 <div class='content-caption'>Robert Wallace</div>
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Property veteran Robert Wallace dreams boldly, with both feet firmly planted on the ground.

“For me, it’s all about setting realistic, but ambitious, goals, and delivering on them,” said the Chief Executive Officer of the manager of SGX-listed Frasers Logistics &amp; Commercial Trust (FLCT), which was created by the S$6.0 billion merger between Frasers Logistics &amp; Industrial Trust (FLT) and Frasers Commercial Trust (FCOT) earlier this year.

“In whatever I do, I make sure I deliver on my promises – I guess you could describe me as dependable,” he smiled.

Wallace, who holds a Bachelor of Business (Property) from RMIT University and a Postgraduate Diploma in Applied Finance and Investment from Financial Services Institute of Australasia, began his career as a property valuer in Melbourne.

American author Mark Twain once famously wrote: “Find a job you enjoy doing, and you will never have to work a day in your life”, and Wallace is living proof of that.

“This is one mantra I stand by – I wanted to do something that I would enjoy, something tangible and concrete, so I chose real estate,” he said.

“You can easily achieve successful results with property once you understand the dynamics involved,” he added. “For every piece of real estate, there is a formula behind it. Once you understand that formula, in terms of its drivers and markets, you can always add value.”

Wallace has been CEO of the manager of FLCT since the trust’s listing on SGX in 2016. Before this appointment, the 49-year-old held senior management roles in Frasers Property Australia, formerly known as Australand Property Group. In the early 2000s, he was a Fund Manager at MAB Funds Management. Prior to that, he worked in advisory positions in Jones Lang LaSalle and Charter Keck Cramer.

The merger between Frasers's logistics and commercial REITs to form FLCT, proposed last December by way of a trust scheme of arrangement, was completed in April.

FLCT now has a mandate to principally invest in a portfolio of income-producing real estate used predominantly for logistics or industrial purposes, located globally, and/or commercial purposes or business park purposes, located in the Asia-Pacific region or Europe.

Its portfolio comprises 100 industrial and commercial properties, diversified across five major developed countries – Australia, Germany, Singapore, the UK and the Netherlands.

 

Opportunistic Focus

 

The REIT’s Sponsor is Mainboard-listed Frasers Property, a multinational owner-operator-developer of real estate products and services with total assets of about S$38.7 billion as at 30 September 2020. Its businesses span five asset classes – residential, retail, commercial &amp; business parks, industrial &amp; logistics, as well as hospitality.

The Sponsor has operations in Southeast Asia, Australia, Europe and China, and its well-established hospitality business owns and/or operates serviced apartments and hotels in more than 70 cities and 20 countries across Asia, Australia, Europe, the Middle East and Africa.

Expanding in the markets FLCT already has a presence in, as well as leveraging on its Sponsor’s right-of-first-refusal (ROFR) pipeline, will drive the REIT’s medium- to longer-term growth, Wallace noted.

“We’ll take advantage of our strong presence on the ground, as there are plenty of opportunities in our existing markets. We’re now of a sufficient size to hold developmental assets and enjoy the enhanced returns that such assets will bring.”

Strategic and accretive acquisitions are also on the cards. “We’re looking to buy from a medium- to long-term perspective, not just short-term,” Wallace noted.

“What we tend to do is grade all of our assets – we have about 100 properties within our portfolio – and for any new asset that we look at, hopefully we can put it in the top at least 25% of our portfolio in terms of returns to justify why we would acquire it,” he added.

FLCT applies the same rigour to its divestments. “We’re a reasonably active manager of our portfolio – we’re not afraid to sell if the time is right and the asset is non-core.”

In August 2020, the REIT Manager announced the acquisition of two fully occupied freehold properties in Australia and the UK, and the divestment of its remaining 50% interest in a cold-storage facility in Queensland, Australia.

Robust e-commerce trends also favour the industrial, and in particular, the logistics sector. As an asset class, logistics, which previously ranked third behind commercial and retail properties, has now risen to pole position in terms of demand, Wallace pointed out.

“Over the last six months, the transition towards e-commerce has gathered momentum – there’re structural changes developing in the distribution and delivery of goods to consumers, and these have become part of longer-term industry trends.”

This has been obvious in countries such as Germany, UK and the Netherlands, which are deep and early adopters of e-commerce. “Operators are moving from smaller to larger facilities to exploit economies of scale, while a number of third-party logistics providers are experimenting with the use of drones as part of their delivery systems,” he added.

 

Sustainability Commitment

 

The REIT’s progressive efforts on sustainability have also allowed it to attract and retain as tenants multinational corporations and local companies that place greater emphasis on green issues.

The REIT was named “Industrial – Global Listed Sector Leader” by the Global Real Estate Sustainability Benchmark (GRESB) for the third straight year. It is also the first industrial and logistics property owner to achieve six-star Green Star ratings for industrial facilities in New South Wales, Victoria, and Queensland.

While the outlook for FLCT remains relatively stable, the impact of the pandemic continues to create a challenging operating environment, Wallace admitted.

Additionally, competition for quality assets among investors remains stiff. “Industrials is an increasingly popular asset class in the key markets that we’re in, such as Australia and Europe,” he noted.

Another hurdle is meeting the increasingly advanced specifications from clients. “Some tenants have made significant investments in sorting and automation equipment, and these equipment are sometimes worth more than the building itself. So we need to be able to customise the set-up of such specialised facilities for them.”

Other issues that keep Wallace up at night include foreign currency movements and portfolio occupancy rates.

“We derive a significant portion of FLCT’s income from Australia, Europe and the UK, but distributions are delivered to investors in Singapore dollars,” he said. “The Aussie dollar can be volatile at times, and that’s what I’m always monitoring, as well as ensuring that our tenant retention rates remain high.”

“The one thing I’m proud of, is that over the last four years since listing, our portfolio has shown itself to be solid and reliable, performing in both challenging as well as good times.”

As at 30 September 2020, FLCT’s portfolio had an occupancy rate of 97.5% and a weighted average lease expiry (WALE) of 4.9 years. Aggregate leverage stood at 37.4%, with borrowings totalling S$2.5 billion, of which 54.6% were at fixed interest rates.

Its portfolio was valued at approximately S$6.2 billion, up from about S$3.2 billion a year ago, post-merger and acquisitions, as well as following a valuation uplift of its investment properties.

Work may be all-consuming, but Wallace makes it a point to spend time with his son, 19, and daughter, 17. “I always emphasise to them the benefits of hard work, and at the same time, the importance of enjoying life to the fullest – because you only have one.”

“Last but not least, they must always remember that every problem has a remedy,” he added. “Whatever challenge you are facing, there’s always a way through it – it may not be a fantastic solution, but it’s a solution, nonetheless.”    

 

Frasers Logistics &amp; Commercial Trust

Frasers Logistics &amp; Commercial Trust (FLCT) is a Singapore-listed REIT with a portfolio comprising 100 industrial and commercial properties, worth approximately S$6.2 billion, diversified across five major developed markets – Australia, Germany, Singapore, UK and the Netherlands. FLCT was listed on SGX Mainboard on 20 June 2016 as Frasers Logistics &amp; Industrial Trust and was subsequently renamed Frasers Logistics &amp; Commercial Trust on 29 April 2020,  following the completion of the merger with Frasers Commercial Trust. FLCT’s investment strategy is to invest globally in a diversified portfolio of income-producing properties used predominantly for logistics or industrial purposes located globally, or commercial purposes or business park purposes located in Asia Pacific or Europe (including UK). 
FLCT is sponsored by Frasers Property, a multinational owner-operator-developer of real estate products and services across the property value chain. Listed on SGX Mainboard and headquartered in Singapore, Frasers Property’s assets totalled approximately S$38.7 billion as at 31 March 2020.

The company website is: <a href="http://www.frasersproperty.com/reits/flct">www.frasersproperty.com/reits/flct</a> 
Click <a href="https://www.sgx.com/securities/equities/BUOU">here </a>for the company's StockFacts page. 
For the full year ended 30 September 2020 financial results, click <a href="https://links.sgx.com/1.0.0/corporate-announcements/BYINOS7O39I81KIY/638163_FLCT_FY2020_Results_Press_Release.pdf">here</a>.

 

About kopi-C: the Company brew

Text: Jennifer Tan-Stanisic Photo: Company file kopi-C is a regular column on the SGX Research website that features C-level executives of leading companies listed on Singapore Exchange. These interviews are profiles of senior management aimed at helping investors better understand the individuals who run these corporations. 
For previous editions of kopi-C: the Company brew, please click <a href="http://edm.sgx.com/a/hBd-CspB86%24MfB90noBAABR54ZH/link10">here</a>.   
For more information, or if you would like your senior executives to be featured on SGX Market Dialogues, please send suggestions to <a href="jennifer.t@sgx.com">jennifer.t@sgx.com</a>.
</body></html>


      
    
    Robert Wallace


Property veteran Robert Wallace dreams boldly, with both feet firmly planted on the ground.

“For me, it’s all about setting realistic, but ambitious, goals, and delivering on them,” said the Chief Executive Officer of the manager of SGX-listed Frasers Logistics &amp; Commercial Trust (FLCT), which was created by the S$6.0 billion merger between Frasers Logistics &amp; Industrial Trust (FLT) and Frasers Commercial Trust (FCOT) earlier this year.

“In whatever I do, I make sure I deliver on my promises – I guess you could describe me as dependable,” he smiled.

Wallace, who holds a Bachelor of Business (Property) from RMIT University and a Postgraduate Diploma in Applied Finance and Investment from Financial Services Institute of Australasia, began his career as a property valuer in Melbourne.

American author Mark Twain once famously wrote: “Find a job you enjoy doing, and you will never have to work a day in your life”, and Wallace is living proof of that.

“This is one mantra I stand by – I wanted to do something that I would enjoy, something tangible and concrete, so I chose real estate,” he said.

“You can easily achieve successful results with property once you understand the dynamics involved,” he added. “For every piece of real estate, there is a formula behind it. Once you understand that formula, in terms of its drivers and markets, you can always add value.”

Wallace has been CEO of the manager of FLCT since the trust’s listing on SGX in 2016. Before this appointment, the 49-year-old held senior management roles in Frasers Property Australia, formerly known as Australand Property Group. In the early 2000s, he was a Fund Manager at MAB Funds Management. Prior to that, he worked in advisory positions in Jones Lang LaSalle and Charter Keck Cramer.

The merger between Frasers's logistics and commercial REITs to form FLCT, proposed last December by way of a trust scheme of arrangement, was completed in April.

FLCT now has a mandate to principally invest in a portfolio of income-producing real estate used predominantly for logistics or industrial purposes, located globally, and/or commercial purposes or business park purposes, located in the Asia-Pacific region or Europe.

Its portfolio comprises 100 industrial and commercial properties, diversified across five major developed countries – Australia, Germany, Singapore, the UK and the Netherlands.

 

Opportunistic Focus

 

The REIT’s Sponsor is Mainboard-listed Frasers Property, a multinational owner-operator-developer of real estate products and services with total assets of about S$38.7 billion as at 30 September 2020. Its businesses span five asset classes – residential, retail, commercial &amp; business parks, industrial &amp; logistics, as well as hospitality.

The Sponsor has operations in Southeast Asia, Australia, Europe and China, and its well-established hospitality business owns and/or operates serviced apartments and hotels in more than 70 cities and 20 countries across Asia, Australia, Europe, the Middle East and Africa.

Expanding in the markets FLCT already has a presence in, as well as leveraging on its Sponsor’s right-of-first-refusal (ROFR) pipeline, will drive the REIT’s medium- to longer-term growth, Wallace noted.

“We’ll take advantage of our strong presence on the ground, as there are plenty of opportunities in our existing markets. We’re now of a sufficient size to hold developmental assets and enjoy the enhanced returns that such assets will bring.”

Strategic and accretive acquisitions are also on the cards. “We’re looking to buy from a medium- to long-term perspective, not just short-term,” Wallace noted.

“What we tend to do is grade all of our assets – we have about 100 properties within our portfolio – and for any new asset that we look at, hopefully we can put it in the top at least 25% of our portfolio in terms of returns to justify why we would acquire it,” he added.

FLCT applies the same rigour to its divestments. “We’re a reasonably active manager of our portfolio – we’re not afraid to sell if the time is right and the asset is non-core.”

In August 2020, the REIT Manager announced the acquisition of two fully occupied freehold properties in Australia and the UK, and the divestment of its remaining 50% interest in a cold-storage facility in Queensland, Australia.

Robust e-commerce trends also favour the industrial, and in particular, the logistics sector. As an asset class, logistics, which previously ranked third behind commercial and retail properties, has now risen to pole position in terms of demand, Wallace pointed out.

“Over the last six months, the transition towards e-commerce has gathered momentum – there’re structural changes developing in the distribution and delivery of goods to consumers, and these have become part of longer-term industry trends.”

This has been obvious in countries such as Germany, UK and the Netherlands, which are deep and early adopters of e-commerce. “Operators are moving from smaller to larger facilities to exploit economies of scale, while a number of third-party logistics providers are experimenting with the use of drones as part of their delivery systems,” he added.

 

Sustainability Commitment

 

The REIT’s progressive efforts on sustainability have also allowed it to attract and retain as tenants multinational corporations and local companies that place greater emphasis on green issues.

The REIT was named “Industrial – Global Listed Sector Leader” by the Global Real Estate Sustainability Benchmark (GRESB) for the third straight year. It is also the first industrial and logistics property owner to achieve six-star Green Star ratings for industrial facilities in New South Wales, Victoria, and Queensland.

While the outlook for FLCT remains relatively stable, the impact of the pandemic continues to create a challenging operating environment, Wallace admitted.

Additionally, competition for quality assets among investors remains stiff. “Industrials is an increasingly popular asset class in the key markets that we’re in, such as Australia and Europe,” he noted.

Another hurdle is meeting the increasingly advanced specifications from clients. “Some tenants have made significant investments in sorting and automation equipment, and these equipment are sometimes worth more than the building itself. So we need to be able to customise the set-up of such specialised facilities for them.”

Other issues that keep Wallace up at night include foreign currency movements and portfolio occupancy rates.

“We derive a significant portion of FLCT’s income from Australia, Europe and the UK, but distributions are delivered to investors in Singapore dollars,” he said. “The Aussie dollar can be volatile at times, and that’s what I’m always monitoring, as well as ensuring that our tenant retention rates remain high.”

“The one thing I’m proud of, is that over the last four years since listing, our portfolio has shown itself to be solid and reliable, performing in both challenging as well as good times.”

As at 30 September 2020, FLCT’s portfolio had an occupancy rate of 97.5% and a weighted average lease expiry (WALE) of 4.9 years. Aggregate leverage stood at 37.4%, with borrowings totalling S$2.5 billion, of which 54.6% were at fixed interest rates.

Its portfolio was valued at approximately S$6.2 billion, up from about S$3.2 billion a year ago, post-merger and acquisitions, as well as following a valuation uplift of its investment properties.

Work may be all-consuming, but Wallace makes it a point to spend time with his son, 19, and daughter, 17. “I always emphasise to them the benefits of hard work, and at the same time, the importance of enjoying life to the fullest – because you only have one.”

“Last but not least, they must always remember that every problem has a remedy,” he added. “Whatever challenge you are facing, there’s always a way through it – it may not be a fantastic solution, but it’s a solution, nonetheless.”    

 

Frasers Logistics &amp; Commercial Trust

Frasers Logistics &amp; Commercial Trust (FLCT) is a Singapore-listed REIT with a portfolio comprising 100 industrial and commercial properties, worth approximately S$6.2 billion, diversified across five major developed markets – Australia, Germany, Singapore, UK and the Netherlands. FLCT was listed on SGX Mainboard on 20 June 2016 as Frasers Logistics &amp; Industrial Trust and was subsequently renamed Frasers Logistics &amp; Commercial Trust on 29 April 2020,  following the completion of the merger with Frasers Commercial Trust. FLCT’s investment strategy is to invest globally in a diversified portfolio of income-producing properties used predominantly for logistics or industrial purposes located globally, or commercial purposes or business park purposes located in Asia Pacific or Europe (including UK). 
FLCT is sponsored by Frasers Property, a multinational owner-operator-developer of real estate products and services across the property value chain. Listed on SGX Mainboard and headquartered in Singapore, Frasers Property’s assets totalled approximately S$38.7 billion as at 31 March 2020.

The company website is: www.frasersproperty.com/reits/flct  
Click here for the company's StockFacts page.  
For the full year ended 30 September 2020 financial results, click here.

 

About kopi-C: the Company brew

Text: Jennifer Tan-Stanisic Photo: Company file  kopi-C is a regular column on the SGX Research website that features C-level executives of leading companies listed on Singapore Exchange. These interviews are profiles of senior management aimed at helping investors better understand the individuals who run these corporations.  
For previous editions of kopi-C: the Company brew, please click here.    
For more information, or if you would like your senior executives to be featured on SGX Market Dialogues, please send suggestions to jennifer.t@sgx.com.



Frasers Logistics & Commercial Trust Pursuing Strategic Opportunities

Singapore

Frasers Commercial Trust is a real estate investment trust. The Trust invests primarily in income-producing commercial office properties and its current portfolio consists of office buildings located in Singapore and Australia.

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