Alpha-Centric ESG Research

Kyle Rudden

Thematic (Sector/Industry)

<ul><li>New SGX climate-related disclosure requirements based on ISSB's standards are more stringent than current requirements, most notably regarding <em>mandatory</em> Scope 3 emissions reporting.</li><li>The implications for S-REITs are significant. Real Estate is one of the most emissions-intensive sectors, and Scope 3 emissions comprise 85-95% of total emissions for real estate companies.</li><li>Motivated by a strong "business case" for best-in-class climate performance and transparency, many S-REITs are ahead of the curve, evidenced by prominence in climate-related indexes.</li></ul>

New SGX climate-related disclosure requirements based on ISSB's standards are more stringent than current requirements, most notably regarding mandatory Scope 3 emissions reporting.The implications for S-REITs are significant. Real Estate is one of the most emissions-intensive sectors, and Scope 3 emissions comprise 85-95% of total emissions for real estate companies.Motivated by a strong "business case" for best-in-class climate performance and transparency, many S-REITs are ahead of the curve, evidenced by prominence in climate-related indexes.

S-REITs: Climate Disclosures and Inclusion in ESG-Related Equity Indexes

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

CDL Hospitality Trusts / Equity Bottom-Up

<ul><li>REIT Watch - Hospitality S-Reits record 21% DPU growth in FY2023 The five hospitality trusts recorded, on average, 21 per cent yoy growth in FY2023 DPU.</li><li>Four of the trusts – ARA US Hospitality Trust (ARA H-Trust), CapitaLand Ascott Trust (Clas), CDL Hospitality Trusts (CDLHT) and Far East Hospitality Trust (FEHT) – reported full-year FY2023 earnings ending Dec 31, 2023.</li></ul>

REIT Watch - Hospitality S-Reits record 21% DPU growth in FY2023 The five hospitality trusts recorded, on average, 21 per cent yoy growth in FY2023 DPU.Four of the trusts – ARA US Hospitality Trust (ARA H-Trust), CapitaLand Ascott Trust (Clas), CDL Hospitality Trusts (CDLHT) and Far East Hospitality Trust (FEHT) – reported full-year FY2023 earnings ending Dec 31, 2023.

REIT Watch - Hospitality S-Reits record 21% DPU growth in FY2023

Sabana Industrial REIT / Equity Bottom-Up

<ul><li>IN THE third quarter of 2023, the Straits Times Index (STI) generated a 2.1 per cent total return, bringing its nine-month total return to 3.3 per cent.</li><li>During the quarter, the STI marginally outpaced the FTSE Asean Extended 60 Index and FTSE Asia Pacific Index, which recorded total returns of 1.1 per cent and declines of 1.1 per cent, respectively.</li><li>On the other side of the “higher-for-longer” Fed funds rate outlook, the iEdge S-Reit Index declined 4.2 per cent in total return in Q3 2023.</li></ul>

IN THE third quarter of 2023, the Straits Times Index (STI) generated a 2.1 per cent total return, bringing its nine-month total return to 3.3 per cent.During the quarter, the STI marginally outpaced the FTSE Asean Extended 60 Index and FTSE Asia Pacific Index, which recorded total returns of 1.1 per cent and declines of 1.1 per cent, respectively.On the other side of the “higher-for-longer” Fed funds rate outlook, the iEdge S-Reit Index declined 4.2 per cent in total return in Q3 2023.

REIT Watch - Three S-Reits buck the trend in September

<ul><li>Singapore received over 9 million tourist arrivals from the start of 2023 to end August, a 204.5% year-on-year increase.</li><li>The 10 most actively traded stocks in the tourism and hospitality sectors have booked net institutional inflows of S$2 million, and returned an average 2.3% total returns in the year-to-date ending 21 Sep.</li><li>International visitor arrivals to Singapore in August dipped slightly to 31 million in August, due to seasonality and after school holidays.</li></ul>

Singapore received over 9 million tourist arrivals from the start of 2023 to end August, a 204.5% year-on-year increase.The 10 most actively traded stocks in the tourism and hospitality sectors have booked net institutional inflows of S$2 million, and returned an average 2.3% total returns in the year-to-date ending 21 Sep.International visitor arrivals to Singapore in August dipped slightly to 31 million in August, due to seasonality and after school holidays.

Tourism & Hospitality stocks poised to benefit from F1 and large scale events in coming months

<ul><li>SINGAPORE-LISTED real estate investment trusts (S-Reits) continue to hold up despite decelerating global growth, with the iEdge S-Reit Index generating 2.1 per cent in total returns in the first half of 2023, outperforming the Straits Times Index’s 1.2 per cent and the FTSE EPRA Nareit Asia ex Japan Index’s -1.7 per cent.</li><li>The 10 S-Reits were Keppel DC Reit, Cromwell European Reit (Cromwell E-Reit), Frasers Logistics & Commercial Trust, Frasers Hospitality Trust, Paragon Reit, Frasers Centrepoint Trust, Aims Apac Reit, ParkwayLife Reit, CapitaLand India Trust, and CapitaLand Ascott Trust.</li><li>Outperformance was driven across specialised, healthcare and hospitality sub-sectors at 7.5 per cent, 5.2 per cent, and 4.1 per cent total returns respectively.</li></ul>

SINGAPORE-LISTED real estate investment trusts (S-Reits) continue to hold up despite decelerating global growth, with the iEdge S-Reit Index generating 2.1 per cent in total returns in the first half of 2023, outperforming the Straits Times Index’s 1.2 per cent and the FTSE EPRA Nareit Asia ex Japan Index’s -1.7 per cent.The 10 S-Reits were Keppel DC Reit, Cromwell European Reit (Cromwell E-Reit), Frasers Logistics & Commercial Trust, Frasers Hospitality Trust, Paragon Reit, Frasers Centrepoint Trust, Aims Apac Reit, ParkwayLife Reit, CapitaLand India Trust, and CapitaLand Ascott Trust.Outperformance was driven across specialised, healthcare and hospitality sub-sectors at 7.5 per cent, 5.2 per cent, and 4.1 per cent total returns respectively.

REIT Watch - 10 S-Reits which outperformed in H1

Singapore

Frasers Hospitality Trust operates as a real estate investment trust. The Trust owns, operates and invests in hotels and serviced residences.

Frasers Hospitality Trust (FHT SP)

REIT Watch - Hospitality S-Reits record 21% DPU growth in FY2023

REIT Watch - Hospitality S-Reits record 21% DPU growth in FY2023 The five hospitality trusts recorded, on average, 21 per cent yoy growth in...

Singapore Exchange Ltd (SGX)

REIT Watch - Three S-Reits buck the trend in September

IN THE third quarter of 2023, the Straits Times Index (STI) generated a 2.1 per cent total return, bringing its nine-month total return to 3.3 per...

Singapore Exchange Ltd (SGX)

Tourism & Hospitality stocks poised to benefit from F1 and large scale events in coming months

Singapore received over 9 million tourist arrivals from the start of 2023 to end August, a 204.5% year-on-year increase. The 10 most actively...

Singapore Exchange Ltd (SGX)

REIT Watch - 10 S-Reits which outperformed in H1

SINGAPORE-LISTED real estate investment trusts (S-Reits) continue to hold up despite decelerating global growth, with the iEdge S-Reit Index...

Singapore Exchange Ltd (SGX)

S-REITs: Climate Disclosures and Inclusion in ESG-Related Equity Indexes

​New SGX climate-related disclosure requirements based on ISSB's standards are more stringent than current requirements, most notably regarding...

Kyle Rudden

REIT Watch - Hospitality S-Reits record 21% DPU growth in FY2023

REIT Watch - Hospitality S-Reits record 21% DPU growth in FY2023 The five hospitality trusts recorded, on average, 21 per cent yoy growth in...

Singapore Exchange Ltd (SGX)

REIT Watch - Three S-Reits buck the trend in September

IN THE third quarter of 2023, the Straits Times Index (STI) generated a 2.1 per cent total return, bringing its nine-month total return to 3.3 per...

Singapore Exchange Ltd (SGX)

Tourism & Hospitality stocks poised to benefit from F1 and large scale events in coming months

Singapore received over 9 million tourist arrivals from the start of 2023 to end August, a 204.5% year-on-year increase. The 10 most actively...

Singapore Exchange Ltd (SGX)

REIT Watch - 10 S-Reits which outperformed in H1

SINGAPORE-LISTED real estate investment trusts (S-Reits) continue to hold up despite decelerating global growth, with the iEdge S-Reit Index...

Singapore Exchange Ltd (SGX)

New SGX climate-related disclosure requirements based on ISSB's standards are more stringent than current requirements, most notably regarding...