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>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

<ul><li>Retail investors continued to be a key driver in S-REITs fund flow activities in H1 2023, accumulating net retail inflows of S$389 million, while institutional investors saw net outflows of S$485 million.</li><li>A similar trend was seen a year ago during H1 2022 when the sector booked S$443 million of net retail inflows and S$360 million net institutional outflows.</li><li>By sub-segments, data centre S-REITs received the most institutional net inflows and retail net outflows in H1 2023, at S$26 million and S$43 million respectively.</li></ul>

Retail investors continued to be a key driver in S-REITs fund flow activities in H1 2023, accumulating net retail inflows of S$389 million, while institutional investors saw net outflows of S$485 million.A similar trend was seen a year ago during H1 2022 when the sector booked S$443 million of net retail inflows and S$360 million net institutional outflows.By sub-segments, data centre S-REITs received the most institutional net inflows and retail net outflows in H1 2023, at S$26 million and S$43 million respectively.

REIT Watch - Retail investors net bought S$390m of S-REITs in 1H2023

Far East Hospitality Trust / Equity Bottom-Up

<ul><li>10 S-Reits buck the trend despite Reits lagging in June The month of June (till Jun 28, 2023) saw the iEdge S-Reit index record flattish performance at 0.3 per cent total returns for the month, improving from the 3.0 per cent declines in May.</li><li>The 10 best performing S-Reits for the month of June (till Jun 28, 2023) averaged over 7 per cent in total returns.</li></ul>

10 S-Reits buck the trend despite Reits lagging in June The month of June (till Jun 28, 2023) saw the iEdge S-Reit index record flattish performance at 0.3 per cent total returns for the month, improving from the 3.0 per cent declines in May.The 10 best performing S-Reits for the month of June (till Jun 28, 2023) averaged over 7 per cent in total returns.

REIT Watch - 10 S-REITs buck the trend despite REITs lagging in June

Frasers Logistics & Commercial Trust / Equity Bottom-Up

Frasers Logistics & Commercial Trust (FLT SP)

<ul><li>S-REITs actively manage impact of rising rates; average ICR at 4.3 times Higher interest rates have typically been associated with higher borrowing costs and therefore lower distributions available for unitholders.</li><li>To hedge the impact of rising rates, S-REITs have been actively managing interest rate exposures.</li></ul>

S-REITs actively manage impact of rising rates; average ICR at 4.3 times Higher interest rates have typically been associated with higher borrowing costs and therefore lower distributions available for unitholders.To hedge the impact of rising rates, S-REITs have been actively managing interest rate exposures.

REIT Watch - S-REITs actively manage impact of rising rates; average ICR at 4.3 times

<ul><li>REIT Watch – S-Reits in STI and its reserve list gain 4% this year The Straits Times Index (STI) gained 0.6 per cent in total returns for the year to date till Jun 8, slightly underperforming the iEdge S-Reit Index which gained 0.8 per cent.</li><li>Aside from Keppel DC Reit, STI constituents – Mapletree Industrial Trust and CapitaLand Ascendas Reit also have exposure to Singapore data centres.</li></ul>

REIT Watch – S-Reits in STI and its reserve list gain 4% this year The Straits Times Index (STI) gained 0.6 per cent in total returns for the year to date till Jun 8, slightly underperforming the iEdge S-Reit Index which gained 0.8 per cent.Aside from Keppel DC Reit, STI constituents – Mapletree Industrial Trust and CapitaLand Ascendas Reit also have exposure to Singapore data centres.

REIT Watch – S-Reits in STI and its reserve list gain 4% this year

Singapore

Keppel DC REIT is Asia's first pure-play data centre real estate investment trust, investing in a diversified portfolio of income-producing real estate assets used primarily for data centre purposes and assets supporting the digital economy. Its properties are leased as colocation, fully fitted, and shell and core data centers across Asia and Europe. Headquartered in Singapore, the company was founded in 2014.

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Keppel DC (KDCREIT SP)

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)

REIT Watch - Retail investors net bought S$390m of S-REITs in 1H2023

Retail investors continued to be a key driver in S-REITs fund flow activities in H1 2023, accumulating net retail inflows of S$389 million, while...

Singapore Exchange Ltd (SGX)

REIT Watch - 10 S-REITs buck the trend despite REITs lagging in June

10 S-Reits buck the trend despite Reits lagging in June The month of June (till Jun 28, 2023) saw the iEdge S-Reit index record flattish...

Singapore Exchange Ltd (SGX)

REIT Watch - S-REITs actively manage impact of rising rates; average ICR at 4.3 times

S-REITs actively manage impact of rising rates; average ICR at 4.3 times Higher interest rates have typically been associated with higher...

Singapore Exchange Ltd (SGX)

REIT Watch – S-Reits in STI and its reserve list gain 4% this year

REIT Watch – S-Reits in STI and its reserve list gain 4% this year The Straits Times Index (STI) gained 0.6 per cent in total returns for the year...

Singapore Exchange Ltd (SGX)

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