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

<!DOCTYPE html PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN" "http://www.w3.org/TR/REC-html40/loose.dtd">
<html><body>
<ul>
<li> Of the listed trusts on SGX, the five with the highest dividend yields – 9% and above – are First REIT (12.8%), Lippo Malls Indonesia Retail Trust (10.0%), ARA LOGOS Logistics Trust (9.7%), ARA US Hospitality Trust (9.6%), and Keppel Pacific Oak REIT (9.0%). 
	 </li>
	<li>
First REIT, ARA LOGOS Logistics Trust, Lippo Malls Indonesia Retail Trust and Keppel Pacific Oak REIT are categorised to the healthcare, industrial, retail and commercial REIT segments, while ARA US Hospitality Trust belongs to the property and/or stapled trust segment. 
	 </li>
	<li>The four REITs with the next-highest yields (above 7%) are: IREIT Global (8.7%), Manulife US REIT (8.0%), Mapletree North Asia Commercial Trust (7.9%), and Sasseur REIT (7.9%).</li>
</ul>
 

Of the trusts listed on SGX, the five with the highest dividend yields – 9% and above – are First REIT (12.8%), Lippo Malls Indonesia Retail Trust (10.0%), ARA LOGOS Logistics Trust (9.7%), ARA US Hospitality Trust (9.6%), and Keppel Pacific Oak REIT (9.0%). 
First REIT, ARA LOGOS Logistics Trust, Lippo Malls Indonesia Retail Trust and Keppel Pacific Oak REIT are categorised to the healthcare, industrial, retail and commercial REIT segments, while ARA US Hospitality Trust belongs to the property and/or stapled trust segment. 
The four REITs with next-highest yields (above 7%) are: IREIT Global (8.7%), Manulife US REIT (8.0%), Mapletree North Asia Commercial Trust (7.9%), and Sasseur REIT (7.9%).

<table class="table table-striped"><tbody>
<tr>
<td>
			Name
			</td>
			<td>
			Stock 
			Code
			</td>
			<td>
			Property 
			Sub-Segment
			</td>
			<td>
			Market Cap (S$M)
			</td>
			<td>
			Div Yld (%) 
			</td>
			<td>
			1Y Avg Daily Turnover (S$,000)
			</td>
			<td>
			Debt/Asset (%)
			</td>
			<td>
			P/B
			</td>
		</tr>
<tr>
<td>
			FIRST REIT
			</td>
			<td>
			AW9U
			</td>
			<td>
			Healthcare
			</td>
			<td>
			343
			</td>
			<td>
			12.8
			</td>
			<td>
			1,777
			</td>
			<td>
			34.9
			</td>
			<td>
			0.4
			</td>
		</tr>
<tr>
<td>
			LIPPO MALLS INDONESIA RETAIL TRUST
			</td>
			<td>
			D5IU
			</td>
			<td>
			Retail
			</td>
			<td>
			240
			</td>
			<td>
			10.0
			</td>
			<td>
			962
			</td>
			<td>
			42.5
			</td>
			<td>
			0.5
			</td>
		</tr>
<tr>
<td>
			ARA LOGOS LOGISTICS TRUST
			</td>
			<td>
			K2LU
			</td>
			<td>
			Industrial
			</td>
			<td>
			709
			</td>
			<td>
			9.7
			</td>
			<td>
			1,490
			</td>
			<td>
			40.5
			</td>
			<td>
			1.0
			</td>
		</tr>
<tr>
<td>
			ARA US HOSPITALITY TRUST^#
			</td>
			<td>
			XZL
			</td>
			<td>
			Hospitality
			</td>
			<td>
			334
			</td>
			<td>
			9.6
			</td>
			<td>
			271
			</td>
			<td>
			43.0
			</td>
			<td>
			0.5
			</td>
		</tr>
<tr>
<td>
			KEPPEL PACIFIC OAK US REIT
			</td>
			<td>
			CMOU
			</td>
			<td>
			Office
			</td>
			<td>
			884
			</td>
			<td>
			9.0
			</td>
			<td>
			1,862
			</td>
			<td>
			37.4
			</td>
			<td>
			0.9
			</td>
		</tr>
</tbody></table>
 Source: Bloomberg, <a href="https://api2.sgx.com/sites/default/files/2020-12/SGX%20Research%20-%20SREIT%20%26%20Property%20Trusts%20Chartbook%20-%20December%202020.pdf">SGX SREITs &amp; Property Trusts Chartbook</a> (data as of 30 Nov 20)

#Stapled Trusts

^Property Trusts

 

First REIT (12.8% Yield)

<ul>
<li>On 29 Nov 2020, First REIT said it will <a href="https://links.sgx.com/1.0.0/corporate-announcements/UOKSQCO9QRZCYAQF/640831_Transaction_News_Release.pdf">restructure the master lease agreements</a> of its 11 Indonesian hospital assets leased to former parent company Lippo Karawaci (LPKR)</li>
	<li>The trustee of the REIT signed a memorandum of understanding (MOU) with LPKR, in which all the LPKR master lease agreements are extended to Dec 31, 2035, with an option for a further 15-year term by mutual agreement</li>
	<li>Separately, the trustee also signed a MOU with Metropolis Propertindo Utama (MPU) to restructure the master lease agreements relating to the three hospitals which MPU leases from First REIT</li>
	<li>This restructuring will also extend the master lease agreements to 31 Dec 2035, with an optional 15-year term extension</li>
	<li>The proposed restructuring with LPKR and MPU is expected to set a clean path ahead for First REIT to establish sustainable long-term returns with improved upside sharing for unitholders</li>
	<li>The move will also increase long-term cash flow certainty with First REIT's weighted average lease expiry extending from 7.4 years to 12.6 years</li>
	<li>In its <a href="https://links.sgx.com/1.0.0/corporate-announcements/KB9FDNC3ZCAO1E07/638566_First_REIT_-_3Q_2020_Business_Updates.pdf">3Q2020 business update</a>, the Manager announced a distribution per unit (DPU) of 1.01 Singapore cents for 3Q 2020 versus 2.15 Singapore cents in the year-earlier period, reflecting a 53.0% decline</li>
	<li>On 22 October 2020, First REIT announced that it is extending a further two months of rental relief to its tenants in Indonesia amounting to S$18.9 million for September 2020 and October 2020</li>
	<li>While the pandemic situation has largely stabilised in Singapore and South Korea where several of First REIT’s healthcare assets are located, cases in Indonesia continue to escalate with the country recording the highest number of monthly cases in September 2020</li>
	<li>Taking into consideration the continuing significant impact of the COVID-19 pandemic to the revenues of First REIT’s assets in Indonesia, this further rental relief is intended to tide First REIT’s tenants in Indonesia through 2H 2020</li>
	<li>Amid the prolonged challenging operating environment in Indonesia, the Indonesian parliament has approved a state budget of US$185.25 billion for 2021, set in hopes of stoking an economic growth rebound to 5%</li>
	<li>This supportive and consolidative budget will allocate IDR169.7 trillion toward healthcare spending in the upcoming year, with IDR18 trillion allocated to procure coronavirus vaccine for 60% of the country’s population to create herd immunity</li>
	<li>In view of the protracted pandemic, First REIT will continue to work alongside tenants to ensure all its healthcare properties in Indonesia, Singapore and South Korea operate under strict precautionary measures that prioritise the health and safety of all its patients, medical staff and visitors; it also endeavours to maintain the resilience and long-term sustainability of its business</li>
</ul>
Lippo Malls Indonesia Retail Trust (10.0% Yield)

<ul>
<li>Lippo Malls Indonesia Retail Trust (LMIRT) is proceeding with its plan to acquire the majority of the strata titles in a <a href="https://links.sgx.com/1.0.0/corporate-announcements/EK7HAO4PU1T0HNDD/642521_14_December_2020_Announcement.pdf">West Jakarta mall</a> for about 3.5 trillion rupiah from its sponsor, after unitholders approved the deal at an EGM on 14 December 2020</li>
	<li>About 78.6% of the total number of votes by unit holders were in favour of the acquisition, above the 50% requisite</li>
	<li>The REIT manager had proposed to buy the strata titles, spanning about 175,146 square metres, from Mandiri Cipta Gemilang, a wholly owned subsidiary of LMIRT sponsor Lippo Karawaci</li>
	<li>For <a href="https://links.sgx.com/1.0.0/corporate-announcements/G5R70ATTONGTHYA3/637655_20201102_Press_Release_3Q_Results.pdf">3Q ended 30 September 2020</a>, LMIRT reported gross rental income (GRI) of S$15.3 million, up 20.9% QoQ, following the easing of large scale social restrictions in Indonesia in June, and the consequent re-opening of the trust’s assets on shorter operating hours</li>
	<li>Net property income rose 2.5% QoQ to S$13.1 million on the back of revenue contraction following rental reliefs offered to both related and non-related party tenants</li>
	<li>Taking into account fixed and financing costs, LMIRT recorded nil distributable income for 3Q 2020</li>
	<li>The Trust’s portfolio fundamentals remain strong as its assets are located in high catchment areas</li>
	<li>At a healthy 85.5%, its portfolio occupancy is higher than the industry average of 79.5% and year-to-date rental reversion has remained positive at 4.4%</li>
	<li>With the ongoing Covid-19 situation in Indonesia, LMIRT expects retail malls to continue to be subject to shorter operating hours, capacity caps and ad-hoc restrictions at least until 2Q 2021; it also expects to extend rental and service charge reliefs to tenants during this period</li>
	<li>The trust remains prudent with its capital management with its gearing at 42.5% and interest cover ratio of 2.6 times</li>
	<li>LMIRT has secured a US$75.0 million term loan facility from Deutsche Bank AG, Singapore Branch, which could be used for the repayment of an existing S$175.0 million facility when it matures in August 2021</li>
</ul>
 ARA LOGOS Logistics Trust (9.7% Yield)

<ul>
<li>ARA Logos Logistics Trust (ALOG) has raised about S$50 million from its <a href="https://links.sgx.com/1.0.0/corporate-announcements/CR41WPVBYJ207KWN/640153_Use%20of%20Proceeds%20Announcement_23%20Nov%202020.pdf">private placement</a> to partially finance its proposed acquisition of five Australian properties and investment in two of the sponsor's funds</li>
	<li>About 90.5 million new units were issued at 55.25 Singapore cents each</li>
	<li>The issue price represents a discount of 7.2% to the volume-weighted average price (VWAP) of 59.52 Singapore cents per unit for trades done for the preceding market day on 30 October 2020 and up to the time the underwriting agreement was signed on 2 November 2020</li>
	<li>In its 3Q 2020 <a href="https://links.sgx.com/1.0.0/corporate-announcements/ONPAM0T5WM09J5WP/636402_ALOG%20-%203Q%20FY20%20Business%20Updates%20-%20Press%20Release.PDF">business update</a>, ALOG announced a distributable income of S$16.0 million with a distribution per unit (DPU) of 1.461 Singapore cents vs 1.313 Singapore cents in the year-earlier period, up 11.3% YoY</li>
	<li>Its stronger performance was driven by high portfolio occupancy levels and commencement of new leases at several properties during the quarter</li>
	<li>The portfolio’s WALE by net lettable area stood at 2.6 years as at 30 September 2020 with lease expiries representing only 4.4% of Gross Revenue for the remainder of FY2020</li>
	<li>In a report by CBRE Research, the overall leasing activity in 3Q 2020 in Singapore comprises mainly renewals and relocations</li>
	<li>Even though government stockpiling has tapered off, warehouse and prime logistics spaces continue to see stable leasing appetite underpinned by higher demand from e-commerce, food logistics and third-party logistics players</li>
	<li>The Australian industrial and logistics sector has proved to be resilient so far, based on a research by Colliers Australia, underpinned by the rapid growth of e-commerce as well as the reallocation of capital away from other sectors</li>
	<li>Despite the near-term impact, macro drivers of industrial and logistics tenancy demand such as growth in e-commerce and investment in infrastructure continue to drive leasing activities, while there remains a significant weight of capital also seeking assets within the sector</li>
</ul>
 ARA US Hospitality Trust (9.6% Yield)

<ul>
<li>In its 3Q 2020 <a href="https://links.sgx.com/1.0.0/corporate-announcements/BVB2OBHDW9BGBZ6G/638181_ARA%20HTrust%203Q2020%20Business%20and%20Operational%20Updates%20.pdf">business update</a>, ARA US Hospitality Trust reported that positive recovery continued in 3Q 2020; saw continued steady recovery in portfolio revenue, with all 41 hotels are open and operational as of 1 Jul 2020</li>
	<li>Portfolio is geographically diversified across the US with limited urban market footprint which provides exposure to a variety of demand generators, in particular drive-to, leisure demand</li>
	<li> Extended-stay properties continued to demonstrate resilience and commanded premium in occupancy and RevPAR</li>
	<li>Travel, led by leisure demand, is recovering steadily:  travellers currently favour automobile travel but airline passenger counts are improving as well</li>
	<li>US hotel demand recovery trajectory continues: US lodging market has shown steady, gradual improvement since spring</li>
	<li>Limited and select service hotels continue to lead in recovery: &gt;90% of select service hotels have reopened</li>
	<li>Hotel sales activity low due to impact of the pandemic: Transaction activity may remain anaemic with wide bid-ask spread</li>
	<li>3Q 2020 results show marked improvement from 2Q 2020 levels: Recovery in portfolio performance led to positive gross operating profit (GOP) margin</li>
	<li>Gradual recovery in performance from trough: Marriott portfolio continued to outperform the US upscale hotel segment</li>
	<li>Recovery backed by reopening and weekend leisure travel: Weekly performance consistently above GOP breakeven level</li>
	<li>Three-pronged strategy for long-term value creation: Focused on delivering sustainable and stable returns to stapled securityholders</li>
	<li>Proactive asset management: Active, hands-on portfolio management to improve NPI and enhance portfolio value</li>
	<li>Prudent capital management: Optimising capital structure to provide financial flexibility and maintain strong balance sheet</li>
	<li>Yield-accretive investment management: Pursue acquisition opportunities to increase returns and enhance portfolio diversification</li>
	<li>Secure financial footing to weather the challenges</li>
	<li>Adequate liquidity with US$19.6 million cash on hand</li>
	<li>Continued deferral of non-essential capital expenditure to conserve liquidity</li>
	<li>Secured commitment from banks for an additional US$10 million revolving facility</li>
</ul>
 Keppel Pacific Oak REIT (9.0% Yield)

<ul>
<li>In its latest business update, Keppel Pacific Oak REIT reported <a href="https://links.sgx.com/1.0.0/corporate-announcements/H8CHPSJD75XZD5ND/635911_KORE%203Q%202020%20Key%20Business%20and%20Operational%20Updates.pdf">3Q 2020</a> gross revenue and net property income of US$34.5 million and US$20.5 million, up by 13.5% and 10.8% YoY respectively</li>
	<li>3Q 2020 distributable income was US$14.7 million, up 18.5% YoY</li>
	<li>Continued efforts to drive growth and focus on operational excellence have led to YoY improvements largely due to:</li>
	<li>Contribution from One Twenty Five, which was acquired in November 2019</li>
	<li>New and expansion leases from the tech hubs of Seattle and Denver</li>
	<li>Strong balance sheet with significant liquidity</li>
	<li>Low gearing of 37.7% with no long-term refinancing requirements until November 2022</li>
	<li>Cash and undrawn facilities of US$109 million as at 30 September 2020</li>
	<li>Strategically located assets in key growth markets</li>
	<li>Highly diversified portfolio with tenants from high growth and defensive sectors</li>
	<li>Income resilience supported by low tenant concentration and strong tenant mix</li>
	<li>Organic growth supported by well-structured leases, built-in annual rental escalations and positive rental reversions</li>
	<li>Strong balance sheet and liquidity position with 100% unsecured debt and no long-term refinancing requirement until November 2022</li>
	<li>Strong and committed sponsors, as well as a stable and experienced management team</li>
</ul>
</body></html>




 Of the listed trusts on SGX, the five with the highest dividend yields – 9% and above – are First REIT (12.8%), Lippo Malls Indonesia Retail Trust (10.0%), ARA LOGOS Logistics Trust (9.7%), ARA US Hospitality Trust (9.6%), and Keppel Pacific Oak REIT (9.0%). 
	 
	
First REIT, ARA LOGOS Logistics Trust, Lippo Malls Indonesia Retail Trust and Keppel Pacific Oak REIT are categorised to the healthcare, industrial, retail and commercial REIT segments, while ARA US Hospitality Trust belongs to the property and/or stapled trust segment. 
	 
	The four REITs with the next-highest yields (above 7%) are: IREIT Global (8.7%), Manulife US REIT (8.0%), Mapletree North Asia Commercial Trust (7.9%), and Sasseur REIT (7.9%).

 

Of the trusts listed on SGX, the five with the highest dividend yields – 9% and above – are First REIT (12.8%), Lippo Malls Indonesia Retail Trust (10.0%), ARA LOGOS Logistics Trust (9.7%), ARA US Hospitality Trust (9.6%), and Keppel Pacific Oak REIT (9.0%).  
First REIT, ARA LOGOS Logistics Trust, Lippo Malls Indonesia Retail Trust and Keppel Pacific Oak REIT are categorised to the healthcare, industrial, retail and commercial REIT segments, while ARA US Hospitality Trust belongs to the property and/or stapled trust segment.  
The four REITs with next-highest yields (above 7%) are: IREIT Global (8.7%), Manulife US REIT (8.0%), Mapletree North Asia Commercial Trust (7.9%), and Sasseur REIT (7.9%).




			Name
			
			
			Stock 
			Code
			
			
			Property 
			Sub-Segment
			
			
			Market Cap (S$M)
			
			
			Div Yld (%) 
			
			
			1Y Avg Daily Turnover (S$,000)
			
			
			Debt/Asset (%)
			
			
			P/B
			
		


			FIRST REIT
			
			
			AW9U
			
			
			Healthcare
			
			
			343
			
			
			12.8
			
			
			1,777
			
			
			34.9
			
			
			0.4
			
		


			LIPPO MALLS INDONESIA RETAIL TRUST
			
			
			D5IU
			
			
			Retail
			
			
			240
			
			
			10.0
			
			
			962
			
			
			42.5
			
			
			0.5
			
		


			ARA LOGOS LOGISTICS TRUST
			
			
			K2LU
			
			
			Industrial
			
			
			709
			
			
			9.7
			
			
			1,490
			
			
			40.5
			
			
			1.0
			
		


			ARA US HOSPITALITY TRUST^#
			
			
			XZL
			
			
			Hospitality
			
			
			334
			
			
			9.6
			
			
			271
			
			
			43.0
			
			
			0.5
			
		


			KEPPEL PACIFIC OAK US REIT
			
			
			CMOU
			
			
			Office
			
			
			884
			
			
			9.0
			
			
			1,862
			
			
			37.4
			
			
			0.9
			
		

 Source: Bloomberg, SGX SREITs &amp; Property Trusts Chartbook (data as of 30 Nov 20)

#Stapled Trusts

^Property Trusts

 

First REIT (12.8% Yield)


On 29 Nov 2020, First REIT said it will restructure the master lease agreements of its 11 Indonesian hospital assets leased to former parent company Lippo Karawaci (LPKR)
	The trustee of the REIT signed a memorandum of understanding (MOU) with LPKR, in which all the LPKR master lease agreements are extended to Dec 31, 2035, with an option for a further 15-year term by mutual agreement
	Separately, the trustee also signed a MOU with Metropolis Propertindo Utama (MPU) to restructure the master lease agreements relating to the three hospitals which MPU leases from First REIT
	This restructuring will also extend the master lease agreements to 31 Dec 2035, with an optional 15-year term extension
	The proposed restructuring with LPKR and MPU is expected to set a clean path ahead for First REIT to establish sustainable long-term returns with improved upside sharing for unitholders
	The move will also increase long-term cash flow certainty with First REIT's weighted average lease expiry extending from 7.4 years to 12.6 years
	In its 3Q2020 business update, the Manager announced a distribution per unit (DPU) of 1.01 Singapore cents for 3Q 2020 versus 2.15 Singapore cents in the year-earlier period, reflecting a 53.0% decline
	On 22 October 2020, First REIT announced that it is extending a further two months of rental relief to its tenants in Indonesia amounting to S$18.9 million for September 2020 and October 2020
	While the pandemic situation has largely stabilised in Singapore and South Korea where several of First REIT’s healthcare assets are located, cases in Indonesia continue to escalate with the country recording the highest number of monthly cases in September 2020
	Taking into consideration the continuing significant impact of the COVID-19 pandemic to the revenues of First REIT’s assets in Indonesia, this further rental relief is intended to tide First REIT’s tenants in Indonesia through 2H 2020
	Amid the prolonged challenging operating environment in Indonesia, the Indonesian parliament has approved a state budget of US$185.25 billion for 2021, set in hopes of stoking an economic growth rebound to 5%
	This supportive and consolidative budget will allocate IDR169.7 trillion toward healthcare spending in the upcoming year, with IDR18 trillion allocated to procure coronavirus vaccine for 60% of the country’s population to create herd immunity
	In view of the protracted pandemic, First REIT will continue to work alongside tenants to ensure all its healthcare properties in Indonesia, Singapore and South Korea operate under strict precautionary measures that prioritise the health and safety of all its patients, medical staff and visitors; it also endeavours to maintain the resilience and long-term sustainability of its business

Lippo Malls Indonesia Retail Trust (10.0% Yield)


Lippo Malls Indonesia Retail Trust (LMIRT) is proceeding with its plan to acquire the majority of the strata titles in a West Jakarta mall for about 3.5 trillion rupiah from its sponsor, after unitholders approved the deal at an EGM on 14 December 2020
	About 78.6% of the total number of votes by unit holders were in favour of the acquisition, above the 50% requisite
	The REIT manager had proposed to buy the strata titles, spanning about 175,146 square metres, from Mandiri Cipta Gemilang, a wholly owned subsidiary of LMIRT sponsor Lippo Karawaci
	For 3Q ended 30 September 2020, LMIRT reported gross rental income (GRI) of S$15.3 million, up 20.9% QoQ, following the easing of large scale social restrictions in Indonesia in June, and the consequent re-opening of the trust’s assets on shorter operating hours
	Net property income rose 2.5% QoQ to S$13.1 million on the back of revenue contraction following rental reliefs offered to both related and non-related party tenants
	Taking into account fixed and financing costs, LMIRT recorded nil distributable income for 3Q 2020
	The Trust’s portfolio fundamentals remain strong as its assets are located in high catchment areas
	At a healthy 85.5%, its portfolio occupancy is higher than the industry average of 79.5% and year-to-date rental reversion has remained positive at 4.4%
	With the ongoing Covid-19 situation in Indonesia, LMIRT expects retail malls to continue to be subject to shorter operating hours, capacity caps and ad-hoc restrictions at least until 2Q 2021; it also expects to extend rental and service charge reliefs to tenants during this period
	The trust remains prudent with its capital management with its gearing at 42.5% and interest cover ratio of 2.6 times
	LMIRT has secured a US$75.0 million term loan facility from Deutsche Bank AG, Singapore Branch, which could be used for the repayment of an existing S$175.0 million facility when it matures in August 2021

 ARA LOGOS Logistics Trust (9.7% Yield)


ARA Logos Logistics Trust (ALOG) has raised about S$50 million from its private placement to partially finance its proposed acquisition of five Australian properties and investment in two of the sponsor's funds
	About 90.5 million new units were issued at 55.25 Singapore cents each
	The issue price represents a discount of 7.2% to the volume-weighted average price (VWAP) of 59.52 Singapore cents per unit for trades done for the preceding market day on 30 October 2020 and up to the time the underwriting agreement was signed on 2 November 2020
	In its 3Q 2020 business update, ALOG announced a distributable income of S$16.0 million with a distribution per unit (DPU) of 1.461 Singapore cents vs 1.313 Singapore cents in the year-earlier period, up 11.3% YoY
	Its stronger performance was driven by high portfolio occupancy levels and commencement of new leases at several properties during the quarter
	The portfolio’s WALE by net lettable area stood at 2.6 years as at 30 September 2020 with lease expiries representing only 4.4% of Gross Revenue for the remainder of FY2020
	In a report by CBRE Research, the overall leasing activity in 3Q 2020 in Singapore comprises mainly renewals and relocations
	Even though government stockpiling has tapered off, warehouse and prime logistics spaces continue to see stable leasing appetite underpinned by higher demand from e-commerce, food logistics and third-party logistics players
	The Australian industrial and logistics sector has proved to be resilient so far, based on a research by Colliers Australia, underpinned by the rapid growth of e-commerce as well as the reallocation of capital away from other sectors
	Despite the near-term impact, macro drivers of industrial and logistics tenancy demand such as growth in e-commerce and investment in infrastructure continue to drive leasing activities, while there remains a significant weight of capital also seeking assets within the sector

 ARA US Hospitality Trust (9.6% Yield)


In its 3Q 2020 business update, ARA US Hospitality Trust reported that positive recovery continued in 3Q 2020; saw continued steady recovery in portfolio revenue, with all 41 hotels are open and operational as of 1 Jul 2020
	Portfolio is geographically diversified across the US with limited urban market footprint which provides exposure to a variety of demand generators, in particular drive-to, leisure demand
	 Extended-stay properties continued to demonstrate resilience and commanded premium in occupancy and RevPAR
	Travel, led by leisure demand, is recovering steadily:  travellers currently favour automobile travel but airline passenger counts are improving as well
	US hotel demand recovery trajectory continues: US lodging market has shown steady, gradual improvement since spring
	Limited and select service hotels continue to lead in recovery: &gt;90% of select service hotels have reopened
	Hotel sales activity low due to impact of the pandemic: Transaction activity may remain anaemic with wide bid-ask spread
	3Q 2020 results show marked improvement from 2Q 2020 levels: Recovery in portfolio performance led to positive gross operating profit (GOP) margin
	Gradual recovery in performance from trough: Marriott portfolio continued to outperform the US upscale hotel segment
	Recovery backed by reopening and weekend leisure travel: Weekly performance consistently above GOP breakeven level
	Three-pronged strategy for long-term value creation: Focused on delivering sustainable and stable returns to stapled securityholders
	Proactive asset management: Active, hands-on portfolio management to improve NPI and enhance portfolio value
	Prudent capital management: Optimising capital structure to provide financial flexibility and maintain strong balance sheet
	Yield-accretive investment management: Pursue acquisition opportunities to increase returns and enhance portfolio diversification
	Secure financial footing to weather the challenges
	Adequate liquidity with US$19.6 million cash on hand
	Continued deferral of non-essential capital expenditure to conserve liquidity
	Secured commitment from banks for an additional US$10 million revolving facility

 Keppel Pacific Oak REIT (9.0% Yield)


In its latest business update, Keppel Pacific Oak REIT reported 3Q 2020 gross revenue and net property income of US$34.5 million and US$20.5 million, up by 13.5% and 10.8% YoY respectively
	3Q 2020 distributable income was US$14.7 million, up 18.5% YoY
	Continued efforts to drive growth and focus on operational excellence have led to YoY improvements largely due to:
	Contribution from One Twenty Five, which was acquired in November 2019
	New and expansion leases from the tech hubs of Seattle and Denver
	Strong balance sheet with significant liquidity
	Low gearing of 37.7% with no long-term refinancing requirements until November 2022
	Cash and undrawn facilities of US$109 million as at 30 September 2020
	Strategically located assets in key growth markets
	Highly diversified portfolio with tenants from high growth and defensive sectors
	Income resilience supported by low tenant concentration and strong tenant mix
	Organic growth supported by well-structured leases, built-in annual rental escalations and positive rental reversions
	Strong balance sheet and liquidity position with 100% unsecured debt and no long-term refinancing requirement until November 2022
	Strong and committed sponsors, as well as a stable and experienced management team




Five Trusts on SGX With Highest Dividend Yields

Indonesia

PT Lippo Karawaci Tbk is a diversified and integrated property group and is involved in townships, residential homes, hospitals, hotels, retail malls and industrial estate development and management.  PT Lippo Karawaci through its subsidiaries is also engaged in property and REIT management.

Lippo Karawaci (LPKR IJ)

Five Trusts on SGX With Highest Dividend Yields

Of the listed trusts on SGX, the five with the highest dividend yields – 9% and above – are First REIT (12.8%), Lippo Malls Indonesia Retail...

Singapore Exchange Ltd (SGX)