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.





Real Estate, Manufacturing and Food &amp; Beverage stocks made up close to half of Singapore’s top 200 stocks by turnover in the first 5 months of 2019. The stocks representing tech–laden Manufacturing were the best performers in 2019 YTD and preceding two years, with F&amp;B the best performer in 2016. 
	 
	
Distinct drivers of the three sectors included interest rate outlooks and property prices for Real Estate, technological advancements, value chain integration and global trade for Manufacturing while incomes, tastes, preferences and tourism drove Food &amp; Beverage sales.  
	 
	
Real estate stocks showed the most consistency in returns, with the least standard deviation amongst the individual stock performances, followed by food &amp; beverage stocks, with the individual manufacturing stocks showing the most performance deviation in past years.  
	 
	Returns amongst the relevant 23 manufacturing stocks have been more constant in the 2019 YTD, with the 18% average total return generated by  19 gainers and four decliners, and a median total return of 19%. Hi-P Int, Frencken &amp; Sunpower led the manufacturers over the 23 weeks. 

As 2019 rapidly approaches the halftime mark of 30 June, clear drivers of investor sentiment in the year thus far have included concerns of global growth deceleration at home and abroad, resumption of trade frictions amongst the world’s two largest economies in early May, and a more dovish outlook for US interest rates.

In Singapore, the Straits Times index (“STI”) has generated  a total return of 6.8% in the 2019 year-to-date, in-line with the FTSE ASEAN All Share Index which has gained 7.4%. 

Looking beyond the STI, the 200 most actively traded stocks have generated an average total return of 8.0%. This does not include the average total returns of RHT Health Trust, Memtech International and Indofood Agri Resources which averaged 89.2% gains on premium cash offers for these businesses.

60 Real Estate Stocks Amongst Top 200 Stocks by Turnover 

Singapore’s strong property and infrastructure fundamentals have provided beachheads for Singapore’s listed Real Estate Sector. For the first five months of 2019, the 60 Real Estate stocks amongst the 200 most active traded stocks by turnover accounted for the most day-to-day market turnover, which was followed by Financial Services. As discussed recently (click here) this year Singapore REITs have attracted investment flows from global funds which has included private equity funds.

The 23 manufacturing stocks that were amongst the 200 stocks by turnover accounted for the most day-to-day turnover after the 11 financial services stocks. After Real Estate’s 60 stocks, the 23 manufacturing stocks led by the likes of Yangzijiang Shipbuilding, Venture Corporation and Singapore Tech Engineering, contributed the next most number of stocks in the top 200 by turnover. Note these manufacturing stocks do not include Food Manufacturers or Processors, and span diverse business from advanced electronics to healthcare products.

With Food and Beverage (“F&amp;B”) contributing 14 stocks to the top 200 by turnover, and the next highest number of stocks after Manufacturing, the three sectors of Real Estate, Manufacturing and F&amp;B together made up 97 stocks. This was close to half the top 200 stocks by turnover. The average total returns of the three genres of stocks over recent years are illustrated in the chart below. 

      
    
    Total Returns of Three Genres
The average total returns illustrated above were built on various levels of consistency across the performances of each of the Sector’s stocks. For instance, the 60 real estate stocks showed the most consistency, with the least standard deviation amongst the individual stock performances in all four time periods.

This was followed by F&amp;B, which saw more consistency in the performances across its relevant 14 stocks than Manufacturing over the past three years ending 2018. As noted above, Singapore manufacturing stocks span a wide range of industries, with the diversification exponentiated by the geographical reach of these businesses. This was a contributing factor to the individual manufacturing stocks showing the most performance deviation over the preceding three years.  However, in the 2019 year to date, performances across manufacturing stocks have seen marginally less deviation than the F&amp;B stocks. 

The comparative performances of the relevant stocks are tabled below, with each table sorted by stocks with the most turnover over the first five months of 2019.  The 60 real estate stocks maintain a combined market capitalisation of S$175 billion, the 23 manufacturing stocks maintain a total market capitalisation of S$35 billion and the 14 F&amp;B stocks maintain a total market capitalisation of S$60 billion. Note the designated F&amp;B stocks do not include Palm Oil producers.




			Real Estate
			
			
			Stock

			Code
			
			
			2016 TR %
			
			
			2017 TR %
			
			
			TR 2018 %
			
			
			2019 TR to 11 June %
			
		


			ASCENDAS REAL ESTATE INV TRT
			
			
			A17U
			
			
			4.6
			
			
			27.4
			
			
			0.3
			
			
			18.7
			
		


			CAPITALAND
			
			
			C31
			
			
			-7.2
			
			
			20.1
			
			
			-9.0
			
			
			13.4
			
		


			CAPITALAND COMMERCIAL TRUST
			
			
			C61U
			
			
			16.6
			
			
			42.1
			
			
			-5.0
			
			
			19.3
			
		


			CAPITALAND MALL TRUST
			
			
			C38U
			
			
			3.0
			
			
			19.5
			
			
			12.7
			
			
			16.3
			
		


			MAPLETREE LOGISTICS TRUST
			
			
			M44U
			
			
			10.8
			
			
			38.7
			
			
			1.5
			
			
			24.9
			
		


			HONGKONG LAND HOLDINGS
			
			
			H78
			
			
			-4.8
			
			
			5.5
			
			
			-6.1
			
			
			10.8
			
		


			CITY DEVELOPMENTS
			
			
			C09
			
			
			10.3
			
			
			53.1
			
			
			-33.8
			
			
			12.9
			
		


			SUNTEC REIT
			
			
			T82U
			
			
			13.2
			
			
			37.6
			
			
			-12.8
			
			
			9.5
			
		


			MAPLETREE COMMERCIAL TRUST
			
			
			N2IU
			
			
			14.9
			
			
			23.0
			
			
			7.6
			
			
			25.5
			
		


			UOL GROUP
			
			
			U14
			
			
			-1.5
			
			
			51.2
			
			
			-28.8
			
			
			18.7
			
		


			MAPLETREE NORTH ASIA COMMERC
			
			
			RW0U
			
			
			11.7
			
			
			38.3
			
			
			-1.1
			
			
			22.9
			
		


			KEPPEL REIT
			
			
			K71U
			
			
			17.0
			
			
			30.1
			
			
			-5.2
			
			
			11.3
			
		


			MAPLETREE INDUSTRIAL TRUST
			
			
			ME8U
			
			
			15.8
			
			
			32.2
			
			
			-0.7
			
			
			15.5
			
		


			FRASERS LOGISTICS &amp; INDUSTRI
			
			
			BUOU
			
			
			0.0
			
			
			34.0
			
			
			-4.2
			
			
			19.1
			
		


			KEPPEL DC REIT
			
			
			AJBU
			
			
			26.1
			
			
			27.0
			
			
			-0.7
			
			
			24.6
			
		


			FRASERS CENTREPOINT TRUST
			
			
			J69U
			
			
			9.1
			
			
			24.8
			
			
			2.2
			
			
			20.3
			
		


			ASCOTT RESIDENCE TRUST
			
			
			A68U
			
			
			2.4
			
			
			20.2
			
			
			-6.1
			
			
			22.6
			
		


			FRASERS COMMERCIAL TRUST
			
			
			ND8U
			
			
			7.0
			
			
			27.1
			
			
			-1.7
			
			
			17.7
			
		


			CDL HOSPITALITY TRUSTS
			
			
			J85
			
			
			8.7
			
			
			39.9
			
			
			-8.6
			
			
			13.6
			
		


			YANLORD LAND GROUP
			
			
			Z25
			
			
			33.1
			
			
			25.6
			
			
			-21.6
			
			
			7.9
			
		


			CAPITALAND RETAIL CHINA TRUS
			
			
			AU8U
			
			
			-1.0
			
			
			29.4
			
			
			-12.5
			
			
			16.3
			
		


			ESR-REIT
			
			
			J91U
			
			
			3.6
			
			
			12.0
			
			
			-1.8
			
			
			12.7
			
		


			CROMWELL EUROPEAN REIT
			
			
			CNNU
			
			
			0.0
			
			
			0.0
			
			
			-13.3
			
			
			16.0
			
		


			STARHILL GLOBAL REIT
			
			
			P40U
			
			
			4.7
			
			
			11.6
			
			
			-6.5
			
			
			13.7
			
		


			YING LI INTERNATIONAL REAL E
			
			
			5DM
			
			
			-10.2
			
			
			1.3
			
			
			-23.2
			
			
			20.7
			
		


			CACHE LOGISTICS TRUST
			
			
			K2LU
			
			
			-3.5
			
			
			19.0
			
			
			-12.2
			
			
			12.4
			
		


			FAR EAST HOSPITALITY TRUST
			
			
			Q5T
			
			
			-3.1
			
			
			27.9
			
			
			-10.8
			
			
			9.8
			
		


			MANULIFE US REAL ESTATE INV
			
			
			BTOU
			
			
			0.0
			
			
			18.3
			
			
			-7.2
			
			
			18.5
			
		


			ASCENDAS INDIA TRUST
			
			
			CY6U
			
			
			23.3
			
			
			19.1
			
			
			0.2
			
			
			27.7
			
		


			OUE HOSPITALITY TRUST
			
			
			SK7
			
			
			-1.1
			
			
			38.2
			
			
			-16.0
			
			
			6.6
			
		


			SASSEUR REAL ESTATE INVESTME
			
			
			CRPU
			
			
			0.0
			
			
			0.0
			
			
			0.0
			
			
			31.7
			
		


			OXLEY HOLDINGS
			
			
			5UX
			
			
			1.0
			
			
			71.9
			
			
			-44.7
			
			
			8.0
			
		


			SPH REIT
			
			
			SK6U
			
			
			5.4
			
			
			16.8
			
			
			0.6
			
			
			7.8
			
		


			APAC REALTY
			
			
			CLN
			
			
			0.0
			
			
			0.0
			
			
			-46.4
			
			
			27.8
			
		


			HONG FOK CORP
			
			
			H30
			
			
			-2.4
			
			
			38.2
			
			
			-19.9
			
			
			23.9
			
		


			ASCENDAS HOSPITALITY TRUST
			
			
			Q1P
			
			
			2.9
			
			
			30.8
			
			
			-3.6
			
			
			25.8
			
		


			LIPPO MALLS INDONESIA RETAIL
			
			
			D5IU
			
			
			27.3
			
			
			17.5
			
			
			-50.6
			
			
			28.6
			
		


			WING TAI HOLDINGS
			
			
			W05
			
			
			-6.1
			
			
			47.1
			
			
			-11.8
			
			
			5.2
			
		


			KEPPEL-KBS US REIT
			
			
			CMOU
			
			
			0.0
			
			
			0.0
			
			
			-23.9
			
			
			28.3
			
		


			FRASERS HOSPITALITY TRUST
			
			
			ACV
			
			
			-1.8
			
			
			29.3
			
			
			-4.7
			
			
			4.6
			
		


			AIMS APAC REIT
			
			
			O5RU
			
			
			3.4
			
			
			13.5
			
			
			3.9
			
			
			10.1
			
		


			ACCORDIA GOLF TRUST
			
			
			ADQU
			
			
			31.0
			
			
			17.0
			
			
			-21.1
			
			
			11.1
			
		


			OUE COMMERCIAL REAL ESTATE I
			
			
			TS0U
			
			
			14.6
			
			
			11.0
			
			
			-22.6
			
			
			9.3
			
		


			SOILBUILD BUSINESS SPACE REI
			
			
			SV3U
			
			
			-8.7
			
			
			14.2
			
			
			-6.2
			
			
			8.9
			
		


			OUE
			
			
			LJ3
			
			
			0.5
			
			
			8.2
			
			
			-22.2
			
			
			12.2
			
		


			FRASERS PROPERTY
			
			
			TQ5
			
			
			-1.2
			
			
			39.0
			
			
			-17.4
			
			
			15.1
			
		


			SABANA SHARIAH COMP IND REIT
			
			
			M1GU
			
			
			-33.5
			
			
			12.2
			
			
			6.8
			
			
			18.2
			
		


			TUAN SING HOLDINGS
			
			
			T24
			
			
			-10.6
			
			
			60.8
			
			
			-18.9
			
			
			2.3
			
		


			GUOCOLAND
			
			
			F17
			
			
			4.4
			
			
			28.1
			
			
			-16.3
			
			
			10.0
			
		


			EC WORLD REIT
			
			
			BWCU
			
			
			0.0
			
			
			8.0
			
			
			-1.2
			
			
			16.1
			
		


			DASIN RETAIL TRUST
			
			
			CEDU
			
			
			0.0
			
			
			0.0
			
			
			7.3
			
			
			5.4
			
		


			BUKIT SEMBAWANG ESTATES
			
			
			B61
			
			
			6.7
			
			
			47.1
			
			
			-7.0
			
			
			-1.4
			
		


			IREIT GLOBAL
			
			
			UD1U
			
			
			12.9
			
			
			17.3
			
			
			0.8
			
			
			8.1
			
		


			HO BEE LAND
			
			
			H13
			
			
			3.8
			
			
			24.3
			
			
			0.1
			
			
			4.5
			
		


			PROPNEX
			
			
			OYY
			
			
			0.0
			
			
			0.0
			
			
			0.0
			
			
			18.2
			
		


			UNITED INDUSTRIAL CORP
			
			
			U06
			
			
			-2.8
			
			
			20.6
			
			
			-16.8
			
			
			8.9
			
		


			FORTUNE REIT
			
			
			F25U
			
			
			17.5
			
			
			8.0
			
			
			-0.4
			
			
			23.6
			
		


			BOUSTEAD SINGAPORE
			
			
			F9D
			
			
			-0.6
			
			
			9.8
			
			
			-3.4
			
			
			-2.5
			
		


			SINGHAIYI GROUP
			
			
			5H0
			
			
			-13.4
			
			
			30.7
			
			
			-22.5
			
			
			11.8
			
		


			CENTURION CORP
			
			
			OU8
			
			
			-10.7
			
			
			65.9
			
			
			-16.5
			
			
			1.1
			
		


			Average:
			
			
			 
			
			
			4.1
			
			
			24.7
			
			
			-10.0
			
			
			14.7
			
		

 




			Manufacturing
			
			
			Stock

			Code
			
			
			2016 TR %
			
			
			2017 TR %
			
			
			TR 2018 %
			
			
			2019 TR to 11 June %
			
		


			YANGZIJIANG SHIPBUILDING
			
			
			BS6
			
			
			-22.3
			
			
			86.3
			
			
			-11.4
			
			
			19.2
			
		


			VENTURE CORP
			
			
			V03
			
			
			28.0
			
			
			115.4
			
			
			-29.1
			
			
			19.1
			
		


			SINGAPORE TECH ENGINEERING
			
			
			S63
			
			
			12.3
			
			
			5.0
			
			
			11.8
			
			
			20.3
			
		


			AEM HOLDINGS
			
			
			AWX
			
			
			195.3
			
			
			498.6
			
			
			1.5
			
			
			22.4
			
		


			SEMBCORP MARINE
			
			
			S51
			
			
			-19.3
			
			
			34.9
			
			
			-15.9
			
			
			-1.9
			
		


			HI-P INTERNATIONAL
			
			
			H17
			
			
			4.6
			
			
			326.5
			
			
			-50.8
			
			
			57.1
			
		


			VALUETRONICS HOLDINGS
			
			
			BN2
			
			
			34.3
			
			
			103.5
			
			
			-22.8
			
			
			-2.3
			
		


			SUNPOWER GROUP
			
			
			5GD
			
			
			57.4
			
			
			-11.6
			
			
			-27.6
			
			
			53.0
			
		


			CREATIVE TECHNOLOGY
			
			
			C76
			
			
			-11.9
			
			
			10.9
			
			
			254.2
			
			
			0.5
			
		


			FRENCKEN GROUP
			
			
			E28
			
			
			30.3
			
			
			132.4
			
			
			-18.9
			
			
			53.9
			
		


			HAW PAR CORP
			
			
			H02
			
			
			14.9
			
			
			27.2
			
			
			7.9
			
			
			18.8
			
		


			SUNNINGDALE TECH
			
			
			BHQ
			
			
			22.4
			
			
			83.6
			
			
			-21.9
			
			
			-2.8
			
		


			FU YU CORP
			
			
			F13
			
			
			27.2
			
			
			6.6
			
			
			10.1
			
			
			13.2
			
		


			SARINE TECHNOLOGIES
			
			
			U77
			
			
			20.9
			
			
			-42.4
			
			
			-52.0
			
			
			-29.2
			
		


			RIVERSTONE HOLDINGS
			
			
			AP4
			
			
			-25.0
			
			
			25.6
			
			
			7.9
			
			
			-17.9
			
		


			INNOTEK
			
			
			M14
			
			
			48.6
			
			
			32.7
			
			
			18.3
			
			
			30.0
			
		


			MANUFACTURING INTEGRATION TE
			
			
			M11
			
			
			-25.7
			
			
			48.3
			
			
			18.1
			
			
			22.0
			
		


			CHUAN HUP HOLDINGS
			
			
			C33
			
			
			-15.7
			
			
			37.5
			
			
			-3.7
			
			
			32.1
			
		


			JEP HOLDINGS
			
			
			1J4
			
			
			-31.0
			
			
			86.2
			
			
			-3.6
			
			
			12.6
			
		


			HANWELL HOLDINGS
			
			
			DM0
			
			
			-9.4
			
			
			31.3
			
			
			-43.6
			
			
			41.5
			
		


			MIYOSHI
			
			
			M03
			
			
			19.0
			
			
			62.8
			
			
			-39.6
			
			
			4.9
			
		


			AVARGA
			
			
			U09
			
			
			64.7
			
			
			1.8
			
			
			-23.4
			
			
			20.7
			
		


			HALCYON AGRI CORP
			
			
			5VJ
			
			
			-8.3
			
			
			-5.7
			
			
			-29.8
			
			
			24.4
			
		


			Average:
			
			
			 
			
			
			17.9
			
			
			73.8
			
			
			-2.8
			
			
			17.9
			
		

 




			F&amp;B
			
			
			Stock

			Code
			
			
			2016 TR %
			
			
			2017 TR %
			
			
			TR 2018 %
			
			
			2019 TR to 11 June %
			
		


			THAI BEVERAGE PCL
			
			
			Y92
			
			
			27.2
			
			
			11.3
			
			
			-31.7
			
			
			40.8
			
		


			WILMAR INTERNATIONAL
			
			
			F34
			
			
			25.0
			
			
			-12.1
			
			
			4.3
			
			
			10.8
			
		


			SATS
			
			
			S58
			
			
			30.9
			
			
			10.9
			
			
			-7.2
			
			
			8.2
			
		


			JAPFA
			
			
			UD2
			
			
			94.0
			
			
			-42.8
			
			
			44.6
			
			
			-19.6
			
		


			OLAM INTERNATIONAL
			
			
			O32
			
			
			12.2
			
			
			6.5
			
			
			-15.9
			
			
			15.7
			
		


			KOUFU GROUP
			
			
			VL6
			
			
			0.0
			
			
			0.0
			
			
			0.0
			
			
			14.8
			
		


			SINO GRANDNESS FOOD INDUSTRY
			
			
			T4B
			
			
			-33.8
			
			
			-8.9
			
			
			-38.2
			
			
			-61.0
			
		


			DELFI
			
			
			P34
			
			
			12.0
			
			
			-35.1
			
			
			-5.3
			
			
			-6.8
			
		


			QAF
			
			
			Q01
			
			
			37.8
			
			
			-16.4
			
			
			-45.0
			
			
			36.5
			
		


			JUMBO GROUP
			
			
			42R
			
			
			49.4
			
			
			-9.6
			
			
			-31.4
			
			
			1.7
			
		


			FRASER AND NEAVE
			
			
			F99
			
			
			2.8
			
			
			26.0
			
			
			-32.1
			
			
			4.4
			
		


			BREADTALK GROUP
			
			
			CTN
			
			
			5.4
			
			
			52.1
			
			
			-1.6
			
			
			-2.5
			
		


			JB FOODS
			
			
			BEW
			
			
			32.0
			
			
			69.2
			
			
			38.7
			
			
			11.3
			
		


			KIMLY
			
			
			1D0
			
			
			0.0
			
			
			0.0
			
			
			-30.6
			
			
			2.8
			
		


			Average:
			
			
			 
			
			
			21.1
			
			
			3.7
			
			
			-10.8
			
			
			4.1
			
		

Source: SGX StockFacts, Bloomberg (Data as of 11 June 2019). Note TR = Total Return which assumes dividends are reinvested.

Distinct drivers of the three sectors included interest rate outlooks and property prices for real estate, technological advancements, value chain integration and global trade for manufacturing while incomes, tastes, preferences and tourism drive F&amp;B sales.



Real Estate, Manufacturing and F&B Shares on the Move in 1H19    

<!DOCTYPE html PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN" "http://www.w3.org/TR/REC-html40/loose.dtd">
<html><body>
<ul>
<li>
SGX lists 34 REITs, seven stapled trusts and three property trusts with a combined market cap of over S$100 billion. Of the 34 REITs, 10 report revenues to China, and have a combined market cap of nearly S$20 billion. 
	 </li>
	<li>
In Jan-May 2019, Singapore REITs garnered net institutional inflows of S$173.2 million, averaging a monthly return of 2.7% and YTD return of 13.6%. It was also the second top net buy sector in May. 
	 </li>
	<li>These 10 China-related REITs averaged a total return of +15.7% in the YTD. Among them, the five best performers were: Sasseur REIT (+29.2%), Mapletree Logistics Trust (+24.9%), Mapletree North Asia Commercial Trust (+22.9%), Ascott Residence Trust (+20.7%) and CapitaLand Retail China Trust (+17.1%).</li>
</ul>
Singapore Exchange lists 34 REITs, seven stapled trusts and three property trusts with a combined market cap of over S$100 billion. Two stapled trusts recently listed on SGX – ARA US Hospitality Trust on 9 May, and Eagle Hospitality Trust on 24 May.

REIT popularity in Singapore is exemplified in multiple ways – they comprise one-tenth of Straits Times Index (STI) constituents, all of the STI Reserve List stocks, approximately one-tenth of the total market capitalisation of stocks listed on SGX, and a quarter of the top 20 stocks by turnover on a day-to-day basis.

In the first five months of 2019, Singapore REITs garnered net institutional inflows of S$173.2 million, and averaged a monthly return of 2.7%. It was also the second top net buy sector in May.
<figure>
 <img src="https://api2.sgx.com/sites/default/files/2019-06/Institutional%20Flows%20for%20S-REITs%20%28S%24M%29_8.JPG" alt="Institutional Flows for S-REITs">
 </figure>
 <div class="content-caption">Institutional Flows for S-REITs</div>
<figure>
 <img src="https://api2.sgx.com/sites/default/files/2019-06/Total%20Returns%20of%20S-REIT%20Sector_0.png" alt="Total Returns of S-REIT Sector">
 </figure>
 <div class="content-caption">Total Returns of S-REIT Sector</div>
Source: Bloomberg

Of the 34 REITs on SGX, 10 report revenues to China, and they have a combined market capitalisation of nearly S$20 billion. These 10 China-related  trusts averaged a total return of +15.7% in the 2019 year-to-date, bringing their one-year and three-year total returns to +10.9% and +24.5% respectively. They also averaged a 12-month dividend indicated yield of 6.7% and a price-to-book ratio of 0.8.

In the YTD, the five best-performing REITs with China revenues were: Sasseur REIT (+29.2%), Mapletree Logistics Trust (+24.9%), Mapletree North Asia Commercial Trust (+22.9%), Ascott Residence Trust (+20.7%) and CapitaLand Retail China Trust (+17.1%).

The tables below details the 10 REITs on SGX that report revenues to China, sorted by YTD total returns.

<table class="table table-striped"><tbody>
<tr>
<td>
			Name
			</td>
			<td>
			SGX Code
			</td>
			<td>
			Market Cap (S$M)
			</td>
			<td>
			Total Return YTD (%)
			</td>
			<td>
			Total Return 1Y (%)
			</td>
			<td>
			Total Return 3Y (%)
			</td>
		</tr>
<tr>
<td>
			SASSEUR REIT
			</td>
			<td>
			CRPU
			</td>
			<td>
			933
			</td>
			<td>
			29.2
			</td>
			<td>
			11.5
			</td>
			<td>
			NA
			</td>
		</tr>
<tr>
<td>
			MAPLETREE LOGISTICS TRUST
			</td>
			<td>
			M44U
			</td>
			<td>
			5,546
			</td>
			<td>
			24.9
			</td>
			<td>
			27.4
			</td>
			<td>
			88.6
			</td>
		</tr>
<tr>
<td>
			MAPLETREE NORTH ASIA COMMERCIAL TRUST
			</td>
			<td>
			RW0U
			</td>
			<td>
			4,327
			</td>
			<td>
			22.9
			</td>
			<td>
			23.0
			</td>
			<td>
			68.8
			</td>
		</tr>
<tr>
<td>
			ASCOTT RESIDENCE TRUST
			</td>
			<td>
			A68U
			</td>
			<td>
			2,740
			</td>
			<td>
			20.7
			</td>
			<td>
			20.8
			</td>
			<td>
			38.3
			</td>
		</tr>
<tr>
<td>
			CAPITALAND RETAIL CHINA TRUST
			</td>
			<td>
			AU8U
			</td>
			<td>
			1,538
			</td>
			<td>
			17.1
			</td>
			<td>
			4.5
			</td>
			<td>
			22.2
			</td>
		</tr>
<tr>
<td>
			EC WORLD REIT
			</td>
			<td>
			BWCU
			</td>
			<td>
			612
			</td>
			<td>
			16.1
			</td>
			<td>
			15.5
			</td>
			<td>
			NA
			</td>
		</tr>
<tr>
<td>
			STARHILL GLOBAL REIT
			</td>
			<td>
			P40U
			</td>
			<td>
			1,603
			</td>
			<td>
			11.4
			</td>
			<td>
			14.3
			</td>
			<td>
			15.3
			</td>
		</tr>
<tr>
<td>
			OUE COMMERCIAL REIT
			</td>
			<td>
			TS0U
			</td>
			<td>
			1,389
			</td>
			<td>
			8.2
			</td>
			<td>
			-16.6
			</td>
			<td>
			1.0
			</td>
		</tr>
<tr>
<td>
			DASIN RETAIL TRUST
			</td>
			<td>
			CEDU
			</td>
			<td>
			487
			</td>
			<td>
			4.8
			</td>
			<td>
			7.9
			</td>
			<td>
			NA
			</td>
		</tr>
<tr>
<td>
			BHG RETAIL REIT
			</td>
			<td>
			BMGU
			</td>
			<td>
			356
			</td>
			<td>
			2.0
			</td>
			<td>
			1.0
			</td>
			<td>
			11.2
			</td>
		</tr>
<tr>
<td>
			Average
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			15.7
			</td>
			<td>
			10.9
			</td>
			<td>
			24.5
			</td>
		</tr>
</tbody></table>
 

<table class="table table-striped"><tbody>
<tr>
<td>
			Name
			</td>
			<td>
			SGX Code
			</td>
			<td>
			Market Cap (S$M)
			</td>
			<td>
			12M Div Ind Yld (%)
			</td>
			<td>
			P/B (x)
			</td>
			<td>
			Greater China Revenues  (%)
			</td>
		</tr>
<tr>
<td>
			SASSEUR REIT
			</td>
			<td>
			CRPU
			</td>
			<td>
			933
			</td>
			<td>
			7.7
			</td>
			<td>
			0.8
			</td>
			<td>
			100
			</td>
		</tr>
<tr>
<td>
			MAPLETREE LOGISTICS TRUST
			</td>
			<td>
			M44U
			</td>
			<td>
			5,546
			</td>
			<td>
			5.2
			</td>
			<td>
			1.0
			</td>
			<td>
			30.5
			</td>
		</tr>
<tr>
<td>
			MAPLETREE NORTH ASIA COMMERCIAL TRUST
			</td>
			<td>
			RW0U
			</td>
			<td>
			4,327
			</td>
			<td>
			5.3
			</td>
			<td>
			0.8
			</td>
			<td>
			100
			</td>
		</tr>
<tr>
<td>
			ASCOTT RESIDENCE TRUST
			</td>
			<td>
			A68U
			</td>
			<td>
			2,740
			</td>
			<td>
			5.9
			</td>
			<td>
			0.8
			</td>
			<td>
			10.5
			</td>
		</tr>
<tr>
<td>
			CAPITALAND RETAIL CHINA TRUST
			</td>
			<td>
			AU8U
			</td>
			<td>
			1,538
			</td>
			<td>
			6.6
			</td>
			<td>
			1.0
			</td>
			<td>
			100
			</td>
		</tr>
<tr>
<td>
			EC WORLD REIT
			</td>
			<td>
			BWCU
			</td>
			<td>
			612
			</td>
			<td>
			8
			</td>
			<td>
			0.8
			</td>
			<td>
			100
			</td>
		</tr>
<tr>
<td>
			STARHILL GLOBAL REIT
			</td>
			<td>
			P40U
			</td>
			<td>
			1,603
			</td>
			<td>
			5.9
			</td>
			<td>
			0.8
			</td>
			<td>
			2.3
			</td>
		</tr>
<tr>
<td>
			OUE COMMERCIAL REIT
			</td>
			<td>
			TS0U
			</td>
			<td>
			1,389
			</td>
			<td>
			6.4
			</td>
			<td>
			0.6
			</td>
			<td>
			18.1
			</td>
		</tr>
<tr>
<td>
			DASIN RETAIL TRUST
			</td>
			<td>
			CEDU
			</td>
			<td>
			487
			</td>
			<td>
			8.2
			</td>
			<td>
			0.6
			</td>
			<td>
			100
			</td>
		</tr>
<tr>
<td>
			BHG RETAIL REIT
			</td>
			<td>
			BMGU
			</td>
			<td>
			356
			</td>
			<td>
			7.4
			</td>
			<td>
			0.9
			</td>
			<td>
			100
			</td>
		</tr>
<tr>
<td>
			Average
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			6.7
			</td>
			<td>
			0.8
			</td>
			<td>
			 
			</td>
		</tr>
</tbody></table>
Source: Bloomberg &amp; StockFacts (data as of 6 June 2019)

China’s Growth Outlook

China’s economy has slowed in the wake of the ongoing Sino-US trade dispute, with both industrial output and retail sales growth declining sharply. In April, industrial output growth eased to 5.4% from 8.5% in March, while retail sales rose by 7.2%, well below the 8.7% increase in March, and the lowest in more than a decade. The country’s manufacturing activity also contracted more than expected in May, with the official manufacturing Purchasing Managers’ Index (PMI) falling sharply to 49.4 from 50.1 in April.

While China registered a higher-than-expected 1.1% expansion in its May exports, following a 2.7% decline in April, many economists expect this to be a one-off phenomenon, driven by pre-existing orders and rushed shipments ahead of announced US tariff hikes. The outlook is for a further worsening in China’s trade performance the in coming months given the lack of clear direction for a resolution of bilateral trade tensions.

Last week, the International Monetary Fund (IMF) cut its growth forecasts for China’s gross domestic product to 6.2% from 6.3% in 2019, and to 6% from 6.1% in 2020, citing heightened uncertainty over the trade spat. 

Both countries have blamed each other for the breakdown in talks in May. So far, frictions have shown no sign of easing, with the office of the US Trade Representative preparing to review imposing 25% tariffs on the remaining approximately $300 billion in imports from China.

Last week, Chinese central bank governor Yi Gang said in a media interview that there is “tremendous” room to adjust monetary policy if the trade war deepens, and also signalled that he is not committed to defending the nation’s currency at a particular level.
</body></html>





SGX lists 34 REITs, seven stapled trusts and three property trusts with a combined market cap of over S$100 billion. Of the 34 REITs, 10 report revenues to China, and have a combined market cap of nearly S$20 billion.  
	 
	
In Jan-May 2019, Singapore REITs garnered net institutional inflows of S$173.2 million, averaging a monthly return of 2.7% and YTD return of 13.6%. It was also the second top net buy sector in May.  
	 
	These 10 China-related REITs averaged a total return of +15.7% in the YTD. Among them, the five best performers were: Sasseur REIT (+29.2%), Mapletree Logistics Trust (+24.9%), Mapletree North Asia Commercial Trust (+22.9%), Ascott Residence Trust (+20.7%) and CapitaLand Retail China Trust (+17.1%).

Singapore Exchange lists 34 REITs, seven stapled trusts and three property trusts with a combined market cap of over S$100 billion. Two stapled trusts recently listed on SGX – ARA US Hospitality Trust on 9 May, and Eagle Hospitality Trust on 24 May.

REIT popularity in Singapore is exemplified in multiple ways – they comprise one-tenth of Straits Times Index (STI) constituents, all of the STI Reserve List stocks, approximately one-tenth of the total market capitalisation of stocks listed on SGX, and a quarter of the top 20 stocks by turnover on a day-to-day basis.

In the first five months of 2019, Singapore REITs garnered net institutional inflows of S$173.2 million, and averaged a monthly return of 2.7%. It was also the second top net buy sector in May.

      
    
    Institutional Flows for S-REITs

      
    
    Total Returns of S-REIT Sector
Source: Bloomberg

Of the 34 REITs on SGX, 10 report revenues to China, and they have a combined market capitalisation of nearly S$20 billion. These 10 China-related  trusts averaged a total return of +15.7% in the 2019 year-to-date, bringing their one-year and three-year total returns to +10.9% and +24.5% respectively. They also averaged a 12-month dividend indicated yield of 6.7% and a price-to-book ratio of 0.8.

In the YTD, the five best-performing REITs with China revenues were: Sasseur REIT (+29.2%), Mapletree Logistics Trust (+24.9%), Mapletree North Asia Commercial Trust (+22.9%), Ascott Residence Trust (+20.7%) and CapitaLand Retail China Trust (+17.1%).

The tables below details the 10 REITs on SGX that report revenues to China, sorted by YTD total returns.




			Name
			
			
			SGX Code
			
			
			Market Cap (S$M)
			
			
			Total Return YTD (%)
			
			
			Total Return 1Y (%)
			
			
			Total Return 3Y (%)
			
		


			SASSEUR REIT
			
			
			CRPU
			
			
			933
			
			
			29.2
			
			
			11.5
			
			
			NA
			
		


			MAPLETREE LOGISTICS TRUST
			
			
			M44U
			
			
			5,546
			
			
			24.9
			
			
			27.4
			
			
			88.6
			
		


			MAPLETREE NORTH ASIA COMMERCIAL TRUST
			
			
			RW0U
			
			
			4,327
			
			
			22.9
			
			
			23.0
			
			
			68.8
			
		


			ASCOTT RESIDENCE TRUST
			
			
			A68U
			
			
			2,740
			
			
			20.7
			
			
			20.8
			
			
			38.3
			
		


			CAPITALAND RETAIL CHINA TRUST
			
			
			AU8U
			
			
			1,538
			
			
			17.1
			
			
			4.5
			
			
			22.2
			
		


			EC WORLD REIT
			
			
			BWCU
			
			
			612
			
			
			16.1
			
			
			15.5
			
			
			NA
			
		


			STARHILL GLOBAL REIT
			
			
			P40U
			
			
			1,603
			
			
			11.4
			
			
			14.3
			
			
			15.3
			
		


			OUE COMMERCIAL REIT
			
			
			TS0U
			
			
			1,389
			
			
			8.2
			
			
			-16.6
			
			
			1.0
			
		


			DASIN RETAIL TRUST
			
			
			CEDU
			
			
			487
			
			
			4.8
			
			
			7.9
			
			
			NA
			
		


			BHG RETAIL REIT
			
			
			BMGU
			
			
			356
			
			
			2.0
			
			
			1.0
			
			
			11.2
			
		


			Average
			
			
			 
			
			
			 
			
			
			15.7
			
			
			10.9
			
			
			24.5
			
		

 




			Name
			
			
			SGX Code
			
			
			Market Cap (S$M)
			
			
			12M Div Ind Yld (%)
			
			
			P/B (x)
			
			
			Greater China Revenues  (%)
			
		


			SASSEUR REIT
			
			
			CRPU
			
			
			933
			
			
			7.7
			
			
			0.8
			
			
			100
			
		


			MAPLETREE LOGISTICS TRUST
			
			
			M44U
			
			
			5,546
			
			
			5.2
			
			
			1.0
			
			
			30.5
			
		


			MAPLETREE NORTH ASIA COMMERCIAL TRUST
			
			
			RW0U
			
			
			4,327
			
			
			5.3
			
			
			0.8
			
			
			100
			
		


			ASCOTT RESIDENCE TRUST
			
			
			A68U
			
			
			2,740
			
			
			5.9
			
			
			0.8
			
			
			10.5
			
		


			CAPITALAND RETAIL CHINA TRUST
			
			
			AU8U
			
			
			1,538
			
			
			6.6
			
			
			1.0
			
			
			100
			
		


			EC WORLD REIT
			
			
			BWCU
			
			
			612
			
			
			8
			
			
			0.8
			
			
			100
			
		


			STARHILL GLOBAL REIT
			
			
			P40U
			
			
			1,603
			
			
			5.9
			
			
			0.8
			
			
			2.3
			
		


			OUE COMMERCIAL REIT
			
			
			TS0U
			
			
			1,389
			
			
			6.4
			
			
			0.6
			
			
			18.1
			
		


			DASIN RETAIL TRUST
			
			
			CEDU
			
			
			487
			
			
			8.2
			
			
			0.6
			
			
			100
			
		


			BHG RETAIL REIT
			
			
			BMGU
			
			
			356
			
			
			7.4
			
			
			0.9
			
			
			100
			
		


			Average
			
			
			 
			
			
			 
			
			
			6.7
			
			
			0.8
			
			
			 
			
		

Source: Bloomberg &amp; StockFacts (data as of 6 June 2019)

China’s Growth Outlook

China’s economy has slowed in the wake of the ongoing Sino-US trade dispute, with both industrial output and retail sales growth declining sharply. In April, industrial output growth eased to 5.4% from 8.5% in March, while retail sales rose by 7.2%, well below the 8.7% increase in March, and the lowest in more than a decade. The country’s manufacturing activity also contracted more than expected in May, with the official manufacturing Purchasing Managers’ Index (PMI) falling sharply to 49.4 from 50.1 in April.

While China registered a higher-than-expected 1.1% expansion in its May exports, following a 2.7% decline in April, many economists expect this to be a one-off phenomenon, driven by pre-existing orders and rushed shipments ahead of announced US tariff hikes. The outlook is for a further worsening in China’s trade performance the in coming months given the lack of clear direction for a resolution of bilateral trade tensions.

Last week, the International Monetary Fund (IMF) cut its growth forecasts for China’s gross domestic product to 6.2% from 6.3% in 2019, and to 6% from 6.1% in 2020, citing heightened uncertainty over the trade spat. 

Both countries have blamed each other for the breakdown in talks in May. So far, frictions have shown no sign of easing, with the office of the US Trade Representative preparing to review imposing 25% tariffs on the remaining approximately $300 billion in imports from China.

Last week, Chinese central bank governor Yi Gang said in a media interview that there is “tremendous” room to adjust monetary policy if the trade war deepens, and also signalled that he is not committed to defending the nation’s currency at a particular level.



SGX’s 10 China-Related S-REITs Returned 16% in YTD

<!DOCTYPE html PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN" "http://www.w3.org/TR/REC-html40/loose.dtd">
<html><body>
<ul>
<li>
SGX lists 34 REITs, seven stapled trusts and three property trusts with a combined market cap of about S$100 billion. Two stapled trusts were recently listed – ARA US Hospitality Trust on 9 May, and Eagle Hospitality Trust on 24 May. 
	 </li>
	<li>
The 10 largest REITs on SGX have a combined market capitalisation of nearly S$60 billion. Reflecting increased investor participation, the combined average daily turnover for the 10 largest REITs has gained 31.1% to S$161.2 million for the 2019 YTD, compared with S$122.9 million in calendar year 2018. 
	 </li>
	<li>The five biggest REITs that saw the largest percentage increases in average daily traded values for the YTD compared to calendar year 2018 were: Mapletree Logistics Trust (+86.1%), Mapletree Commercial Trust (+76.0%), Keppel REIT (+55.2%), Fortune REIT (+44.3%), and Mapletree North Asia Commercial Trust (+42.8%).</li>
</ul>
Singapore Exchange lists 34 REITs, seven stapled trusts and three property trusts with a combined market cap of about S$100 billion. Two stapled trusts recently listed on SGX – ARA US Hospitality Trust on 9 May, and Eagle Hospitality Trust on 24 May.

REIT popularity in Singapore is exemplified in multiple ways – they comprise one-tenth of Straits Times Index (STI) constituents, all of the STI Reserve List stocks, approximately one-tenth of the total market capitalisation of stocks listed on SGX, and a quarter of the top 20 stocks by turnover on a day-to-day basis.

The 10 largest REITs on SGX have a combined market capitalisation of nearly S$60 billion. Reflecting increased investor participation, the combined average daily turnover for the 10 largest REITs has gained 31.1% to S$161.2 million for the 2019 year-to-date, compared with S$122.9 million in calendar year 2018.

The five biggest REITs that saw the largest percentage increases in average daily traded values for the YTD compared to calendar year 2018 were: Mapletree Logistics Trust (+86.1%), Mapletree Commercial Trust (+76.0%), Keppel REIT (+55.2%), Fortune REIT (+44.3%), and Mapletree North Asia Commercial Trust (+42.8%). These five trusts averaged a 60.9% jump in daily turnover in YTD versus the 2018 year.

The table below details the average daily turnover of the 10 largest REITs on SGX for the YTD and 2018 calendar year, sorted by percentage change in average daily turnover over the two periods.

<table class="table table-striped"><tbody>
<tr>
<td>
			Name
			</td>
			<td>
			SGX Code
			</td>
			<td>
			Market Cap (S$B)
			</td>
			<td>
			Avg Daily Traded Value 2019 YTD (S$)
			</td>
			<td>
			Avg Daily Traded Value 2018 (S$)
			</td>
			<td>
			% Chg in Avg Daily Traded Value (YTD vs 2018)
			</td>
		</tr>
<tr>
<td>
			MAPLETREE LOGISTICS TRUST
			</td>
			<td>
			M44U
			</td>
			<td>
			5.3
			</td>
			<td>
			19,265,286
			</td>
			<td>
			10,354,265
			</td>
			<td>
			86.1
			</td>
		</tr>
<tr>
<td>
			MAPLETREE COMMERCIAL TRUST
			</td>
			<td>
			N2IU
			</td>
			<td>
			5.5
			</td>
			<td>
			15,313,805
			</td>
			<td>
			8,699,521
			</td>
			<td>
			76.0
			</td>
		</tr>
<tr>
<td>
			KEPPEL REIT
			</td>
			<td>
			K71U
			</td>
			<td>
			4.1
			</td>
			<td>
			8,914,900
			</td>
			<td>
			5,742,953
			</td>
			<td>
			55.2
			</td>
		</tr>
<tr>
<td>
			FORTUNE REIT#
			</td>
			<td>
			F25U
			</td>
			<td>
			3.7
			</td>
			<td>
			132,113
			</td>
			<td>
			91,524
			</td>
			<td>
			44.3
			</td>
		</tr>
<tr>
<td>
			MAPLETREE NORTH ASIA COMMERCIAL TRUST
			</td>
			<td>
			RW0U
			</td>
			<td>
			4.2
			</td>
			<td>
			10,016,494
			</td>
			<td>
			7,014,099
			</td>
			<td>
			42.8
			</td>
		</tr>
<tr>
<td>
			ASCENDAS REIT
			</td>
			<td>
			A17U
			</td>
			<td>
			9.1
			</td>
			<td>
			33,009,952
			</td>
			<td>
			25,738,647
			</td>
			<td>
			28.3
			</td>
		</tr>
<tr>
<td>
			CAPITALAND COMMERCIAL TRUST
			</td>
			<td>
			C61U
			</td>
			<td>
			7.2
			</td>
			<td>
			25,420,971
			</td>
			<td>
			20,751,999
			</td>
			<td>
			22.5
			</td>
		</tr>
<tr>
<td>
			MAPLETREE INDUSTRIAL TRUST
			</td>
			<td>
			ME8U
			</td>
			<td>
			4.2
			</td>
			<td>
			8,668,874
			</td>
			<td>
			7,214,549
			</td>
			<td>
			20.2
			</td>
		</tr>
<tr>
<td>
			SUNTEC REIT
			</td>
			<td>
			T82U
			</td>
			<td>
			5.1
			</td>
			<td>
			15,255,790
			</td>
			<td>
			13,590,841
			</td>
			<td>
			12.3
			</td>
		</tr>
<tr>
<td>
			CAPITALAND MALL TRUST
			</td>
			<td>
			C38U
			</td>
			<td>
			8.8
			</td>
			<td>
			25,161,949
			</td>
			<td>
			23,713,838
			</td>
			<td>
			6.1
			</td>
		</tr>
<tr>
<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			161,160,134
			</td>
			<td>
			122,912,237
			</td>
			<td>
			31.1
			</td>
		</tr>
</tbody></table>
Source: Bloomberg &amp; StockFacts (data as of 23 May 2019) 
#Note: Fortune REIT is traded in HKD with SGD equivalents shown in table

In the YTD, these 10 largest REITs have averaged total returns of 14.4%, bringing their one-year and three-year total returns to 18.7% and 53.2% respectively. The five best performers in the YTD were: Fortune REIT (+25.1%), Mapletree Logistics Trust (+19.2%), Mapletree Commercial Trust (+18.7%), Mapletree North Asia Commercial Trust (+18.4%) and Ascendas REIT (+17.1%).

The table below details the 10 largest REITs on SGX, sorted by YTD total return.

<table class="table table-striped"><tbody>
<tr>
<td>
			Name
			</td>
			<td>
			SGX Code
			</td>
			<td>
			Market Cap (S$B)
			</td>
			<td>
			Total Return YTD (%)
			</td>
			<td>
			Total Return 1Y (%)
			</td>
			<td>
			Total Return 3Y (%)
			</td>
			<td>
			T12M Div Ind Yld (%)
			</td>
			<td>
			P/B (x)
			</td>
		</tr>
<tr>
<td>
			FORTUNE REIT
			</td>
			<td>
			F25U
			</td>
			<td>
			3.7
			</td>
			<td>
			25.1
			</td>
			<td>
			24.6
			</td>
			<td>
			47.7
			</td>
			<td>
			4.8
			</td>
			<td>
			0.7
			</td>
		</tr>
<tr>
<td>
			MAPLETREE LOGISTICS TRUST
			</td>
			<td>
			M44U
			</td>
			<td>
			5.3
			</td>
			<td>
			19.2
			</td>
			<td>
			28.0
			</td>
			<td>
			80.9
			</td>
			<td>
			4.5
			</td>
			<td>
			1.0
			</td>
		</tr>
<tr>
<td>
			MAPLETREE COMMERCIAL TRUST
			</td>
			<td>
			N2IU
			</td>
			<td>
			5.5
			</td>
			<td>
			18.7
			</td>
			<td>
			27.5
			</td>
			<td>
			60.6
			</td>
			<td>
			4.8
			</td>
			<td>
			1.1
			</td>
		</tr>
<tr>
<td>
			MAPLETREE NORTH ASIA COMMERCIAL TRUST
			</td>
			<td>
			RW0U
			</td>
			<td>
			4.2
			</td>
			<td>
			18.4
			</td>
			<td>
			20.6
			</td>
			<td>
			62.6
			</td>
			<td>
			5.3
			</td>
			<td>
			0.8
			</td>
		</tr>
<tr>
<td>
			ASCENDAS REIT
			</td>
			<td>
			A17U
			</td>
			<td>
			9.1
			</td>
			<td>
			17.1
			</td>
			<td>
			18.0
			</td>
			<td>
			50.6
			</td>
			<td>
			5.5
			</td>
			<td>
			1.2
			</td>
		</tr>
<tr>
<td>
			MAPLETREE INDUSTRIAL TRUST
			</td>
			<td>
			ME8U
			</td>
			<td>
			4.2
			</td>
			<td>
			12.8
			</td>
			<td>
			13.3
			</td>
			<td>
			58.2
			</td>
			<td>
			5.8
			</td>
			<td>
			1.4
			</td>
		</tr>
<tr>
<td>
			CAPITALAND COMMERCIAL TRUST
			</td>
			<td>
			C61U
			</td>
			<td>
			7.2
			</td>
			<td>
			12.3
			</td>
			<td>
			16.8
			</td>
			<td>
			67.9
			</td>
			<td>
			4.5
			</td>
			<td>
			1.0
			</td>
		</tr>
<tr>
<td>
			CAPITALAND MALL TRUST
			</td>
			<td>
			C38U
			</td>
			<td>
			8.8
			</td>
			<td>
			7.7
			</td>
			<td>
			21.0
			</td>
			<td>
			35.6
			</td>
			<td>
			4.9
			</td>
			<td>
			1.1
			</td>
		</tr>
<tr>
<td>
			KEPPEL REIT
			</td>
			<td>
			K71U
			</td>
			<td>
			4.1
			</td>
			<td>
			7.7
			</td>
			<td>
			8.4
			</td>
			<td>
			36.2
			</td>
			<td>
			4.6
			</td>
			<td>
			0.8
			</td>
		</tr>
<tr>
<td>
			SUNTEC REIT
			</td>
			<td>
			T82U
			</td>
			<td>
			5.1
			</td>
			<td>
			4.9
			</td>
			<td>
			9.0
			</td>
			<td>
			32.1
			</td>
			<td>
			5.5
			</td>
			<td>
			0.9
			</td>
		</tr>
<tr>
<td>
			Average
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			14.4
			</td>
			<td>
			18.7
			</td>
			<td>
			53.2
			</td>
			<td>
			5.0
			</td>
			<td>
			1.0
			</td>
		</tr>
</tbody></table>
Source: Bloomberg &amp; StockFacts (data as of 23 May 2019) #Note: Fortune REIT is traded in HKD with SGD equivalents shown in table
</body></html>





SGX lists 34 REITs, seven stapled trusts and three property trusts with a combined market cap of about S$100 billion. Two stapled trusts were recently listed – ARA US Hospitality Trust on 9 May, and Eagle Hospitality Trust on 24 May.  
	 
	
The 10 largest REITs on SGX have a combined market capitalisation of nearly S$60 billion. Reflecting increased investor participation, the combined average daily turnover for the 10 largest REITs has gained 31.1% to S$161.2 million for the 2019 YTD, compared with S$122.9 million in calendar year 2018. 
	 
	The five biggest REITs that saw the largest percentage increases in average daily traded values for the YTD compared to calendar year 2018 were: Mapletree Logistics Trust (+86.1%), Mapletree Commercial Trust (+76.0%), Keppel REIT (+55.2%), Fortune REIT (+44.3%), and Mapletree North Asia Commercial Trust (+42.8%).

Singapore Exchange lists 34 REITs, seven stapled trusts and three property trusts with a combined market cap of about S$100 billion. Two stapled trusts recently listed on SGX – ARA US Hospitality Trust on 9 May, and Eagle Hospitality Trust on 24 May.

REIT popularity in Singapore is exemplified in multiple ways – they comprise one-tenth of Straits Times Index (STI) constituents, all of the STI Reserve List stocks, approximately one-tenth of the total market capitalisation of stocks listed on SGX, and a quarter of the top 20 stocks by turnover on a day-to-day basis.

The 10 largest REITs on SGX have a combined market capitalisation of nearly S$60 billion. Reflecting increased investor participation, the combined average daily turnover for the 10 largest REITs has gained 31.1% to S$161.2 million for the 2019 year-to-date, compared with S$122.9 million in calendar year 2018.

The five biggest REITs that saw the largest percentage increases in average daily traded values for the YTD compared to calendar year 2018 were: Mapletree Logistics Trust (+86.1%), Mapletree Commercial Trust (+76.0%), Keppel REIT (+55.2%), Fortune REIT (+44.3%), and Mapletree North Asia Commercial Trust (+42.8%). These five trusts averaged a 60.9% jump in daily turnover in YTD versus the 2018 year.

The table below details the average daily turnover of the 10 largest REITs on SGX for the YTD and 2018 calendar year, sorted by percentage change in average daily turnover over the two periods.




			Name
			
			
			SGX Code
			
			
			Market Cap (S$B)
			
			
			Avg Daily Traded Value 2019 YTD (S$)
			
			
			Avg Daily Traded Value 2018 (S$)
			
			
			% Chg in Avg Daily Traded Value (YTD vs 2018)
			
		


			MAPLETREE LOGISTICS TRUST
			
			
			M44U
			
			
			5.3
			
			
			19,265,286
			
			
			10,354,265
			
			
			86.1
			
		


			MAPLETREE COMMERCIAL TRUST
			
			
			N2IU
			
			
			5.5
			
			
			15,313,805
			
			
			8,699,521
			
			
			76.0
			
		


			KEPPEL REIT
			
			
			K71U
			
			
			4.1
			
			
			8,914,900
			
			
			5,742,953
			
			
			55.2
			
		


			FORTUNE REIT#
			
			
			F25U
			
			
			3.7
			
			
			132,113
			
			
			91,524
			
			
			44.3
			
		


			MAPLETREE NORTH ASIA COMMERCIAL TRUST
			
			
			RW0U
			
			
			4.2
			
			
			10,016,494
			
			
			7,014,099
			
			
			42.8
			
		


			ASCENDAS REIT
			
			
			A17U
			
			
			9.1
			
			
			33,009,952
			
			
			25,738,647
			
			
			28.3
			
		


			CAPITALAND COMMERCIAL TRUST
			
			
			C61U
			
			
			7.2
			
			
			25,420,971
			
			
			20,751,999
			
			
			22.5
			
		


			MAPLETREE INDUSTRIAL TRUST
			
			
			ME8U
			
			
			4.2
			
			
			8,668,874
			
			
			7,214,549
			
			
			20.2
			
		


			SUNTEC REIT
			
			
			T82U
			
			
			5.1
			
			
			15,255,790
			
			
			13,590,841
			
			
			12.3
			
		


			CAPITALAND MALL TRUST
			
			
			C38U
			
			
			8.8
			
			
			25,161,949
			
			
			23,713,838
			
			
			6.1
			
		


			 
			
			
			 
			
			
			 
			
			
			161,160,134
			
			
			122,912,237
			
			
			31.1
			
		

Source: Bloomberg &amp; StockFacts (data as of 23 May 2019) 
#Note: Fortune REIT is traded in HKD with SGD equivalents shown in table

In the YTD, these 10 largest REITs have averaged total returns of 14.4%, bringing their one-year and three-year total returns to 18.7% and 53.2% respectively. The five best performers in the YTD were: Fortune REIT (+25.1%), Mapletree Logistics Trust (+19.2%), Mapletree Commercial Trust (+18.7%), Mapletree North Asia Commercial Trust (+18.4%) and Ascendas REIT (+17.1%).

The table below details the 10 largest REITs on SGX, sorted by YTD total return.




			Name
			
			
			SGX Code
			
			
			Market Cap (S$B)
			
			
			Total Return YTD (%)
			
			
			Total Return 1Y (%)
			
			
			Total Return 3Y (%)
			
			
			T12M Div Ind Yld (%)
			
			
			P/B (x)
			
		


			FORTUNE REIT
			
			
			F25U
			
			
			3.7
			
			
			25.1
			
			
			24.6
			
			
			47.7
			
			
			4.8
			
			
			0.7
			
		


			MAPLETREE LOGISTICS TRUST
			
			
			M44U
			
			
			5.3
			
			
			19.2
			
			
			28.0
			
			
			80.9
			
			
			4.5
			
			
			1.0
			
		


			MAPLETREE COMMERCIAL TRUST
			
			
			N2IU
			
			
			5.5
			
			
			18.7
			
			
			27.5
			
			
			60.6
			
			
			4.8
			
			
			1.1
			
		


			MAPLETREE NORTH ASIA COMMERCIAL TRUST
			
			
			RW0U
			
			
			4.2
			
			
			18.4
			
			
			20.6
			
			
			62.6
			
			
			5.3
			
			
			0.8
			
		


			ASCENDAS REIT
			
			
			A17U
			
			
			9.1
			
			
			17.1
			
			
			18.0
			
			
			50.6
			
			
			5.5
			
			
			1.2
			
		


			MAPLETREE INDUSTRIAL TRUST
			
			
			ME8U
			
			
			4.2
			
			
			12.8
			
			
			13.3
			
			
			58.2
			
			
			5.8
			
			
			1.4
			
		


			CAPITALAND COMMERCIAL TRUST
			
			
			C61U
			
			
			7.2
			
			
			12.3
			
			
			16.8
			
			
			67.9
			
			
			4.5
			
			
			1.0
			
		


			CAPITALAND MALL TRUST
			
			
			C38U
			
			
			8.8
			
			
			7.7
			
			
			21.0
			
			
			35.6
			
			
			4.9
			
			
			1.1
			
		


			KEPPEL REIT
			
			
			K71U
			
			
			4.1
			
			
			7.7
			
			
			8.4
			
			
			36.2
			
			
			4.6
			
			
			0.8
			
		


			SUNTEC REIT
			
			
			T82U
			
			
			5.1
			
			
			4.9
			
			
			9.0
			
			
			32.1
			
			
			5.5
			
			
			0.9
			
		


			Average
			
			
			 
			
			
			 
			
			
			14.4
			
			
			18.7
			
			
			53.2
			
			
			5.0
			
			
			1.0
			
		

Source: Bloomberg &amp; StockFacts (data as of 23 May 2019) #Note: Fortune REIT is traded in HKD with SGD equivalents shown in table



10 Largest REITs See 30% Surge in Average Daily Turnover in YTD vs 2018





Singapore’s REITs are characterised by comparatively high and stable distribution yields, in addition to potential for portfolio growth. While REIT managers are known to be cautious with balance sheets, acquisitions and secondary fund raisings continue to advance in 2019. 
	 
	
In the month of May, five REITs have either announced or completed property acquisitions for their portfolios &amp; include Frasers Centrepoint Trust, AIMS APAC REIT, Sasseur REIT, Manulife US REIT and EC World REIT. The acquisitions span Singapore, Australia, China and the US. 
	 
	In all five acquisitions, Managers have highlighted that the acquisitions would be yield accretive, i.e. boost the overall distribution yield of their respective portfolios. Currently the 34 REITs and six stapled trusts average a 6.5% distribution yield. 



			The combined Net Asset Value of Real Estate Investment Trusts (“REITs”) listed on Singapore Exchange has continued to expand in 2019. Singapore began 2019 with 34 REITs and 5 stapled trusts, which have all gained and averaged 13.6% total returns through to 22 May and currently average a 6.5% dividend yield.  On 9 May, a sixth Hospitality Trust, ARA US Hospitality Trust was listed, and tomorrow (24 May) a seventh Hospitality Trust, Eagle Hospitality Trust, is scheduled to list on Singapore Exchange.

			REIT popularity in Singapore is exemplified in multiple ways - they make up one-tenth of the STI stocks, all of the STI Reserve List stocks, approximately one-tenth of the total market capitalisation of stocks listed on Singapore Exchange and a quarter of the top 20 stocks by turnover on a day-to-day basis.   

			Listed Real Estate Assets Attracting Private Equity Flows

			Importantly, Singapore REITs are also attracting investment flows from global funds which can include private equity funds. Cohen &amp; Steers Inc. oversees US$62.6 billion in mutual funds and other liquid vehicles (as of 31 March). Their focus is on real estate, infrastructure and commodities, with its shares amongst the biggest gainers over the past 12 months when compared to a peer group of US asset managers.

			Co-founder Robert Steers recently stated in this Bloomberg Article that institutional investors were starting to turn away from private equity real estate and infrastructure investments in favour of liquid funds that put their money to work faster. That same week Cohen &amp; Steers also took its stake in Parkway Life REIT above the 7.0% threshold. The aforementioned article also added that Middle Eastern institutional investors are also allocating more to public funds because private equity returns are narrowing.

			Yield Accretive Acquisitions 

			Singapore’s REITs are characterised by comparatively high and stable distribution yields, in addition to potential for portfolio growth. While REIT managers are known to be cautious with balance sheets, acquisitions and secondary fund raisings continue to advance in 2019.

			During May, five REITs either announced or completed property acquisitions for their portfolios. For all five acquisitions, managers highlighted that the acquisitions would be yield accretive, that is boost the overall distribution yield of their respective portfolios:

			

On 16 May, Frasers Centrepoint Trust (“FCT”) announced its intention to acquire one-third interest in Waterway Point for S$433.3 million. Further details can be read here. The Manager financed the outlay for the acquisition using part of the gross proceeds from the issuance of new equity in FCT through a private placement and non-renounceable preferential offering. The private placement was approximately 2.3 times subscribed at the top end of the private placement issue price range and drew strong demand from new and existing institutional and other accredited investors. As detailed on Slide 11 of the FCT investor presentation (click here), distributable income is expected to increase 12.0%, with a 0.29% increase in Distribution per Unit (“DPU”) expected post the acquisition. 
				 
				
On 15 May, AIMS APAC REIT (“AA REIT”) announced it is expanding its footprint in Australia and had entered into a Sales and Purchase Contract with GSM Rocket Australia Pty Ltd to acquire Boardriders APAC HQ. The property is located in the southern Gold Coast suburb of Burleigh Heads, Queensland, Australia for A$38.46 million. The acquisition is expected to be predominantly funded from Australian dollar debt facilities in order to maintain a natural currency hedge on the acquisition. AA REIT’s aggregate leverage following the acquisition would increase from 33.7% as at 31 March 2019 to 35.5% on a proforma basis, assuming acquisition was fully funded by debt. The proposed acquisition will be DPU accretive and as detailed on Slide 18 of the AAREIT investor presentation (click here), the post-acquisition DPU and DPU yield is expected to increase 0.8%. 
				 
				
On 14 May, Sasseur REIT announced the completion of its first acquisition since its March 2018 IPO. Sasseur REIT completed Sale &amp; Purchase Agreements to acquire additional shop units with existing tenancies at the annex block of Sasseur (Hefei) Outlets from third-party vendors for a purchase consideration of RMB98.3 million, representing a discount of approximately 4.1% compared to valuation. The Manager also noted on 24 April that the acquisition will be funded fully by existing cash and is expected to increase the REIT's DPU and NAV per unit from 5.128 cents and 90.33 cents to 5.179 cents and 90.37 cents respectively, being DPU and NAV accretive on a pro forma basis. Note the 5.128 cents DPU is based on actual DPU for the financial period from 28 March 2018 (being the listing date of Sasseur REIT) to 31 December 2018, with the projected 5.179 cents a 0.99% increase in DPU. For more details click here. 
				 
				
On 13 May, the Manager of Manulife US REIT (“MUST”) announced it had completed the acquisition of property in Fairfax, Virginia, Washington, D.C. A private placement raised gross proceeds of US$94.0 million with US$89.4 million used to partially fund the acquisition of the property. As detailed on page 16 of this MUST investor presentation (click here) post the accretive acquisition the distributable income is expected to rise 12.6% with DPU expected to rise 3.3% to 5.76 US cents and adjusted DPU expected to rise 2.6%. Note the adjusted DPU was calculated based on the weighted average number of units in issue. The adjusted DPU normalises the drag from the enlarged Unit base from the Preferential Offering issued to fund Penn and Phipps acquisition in 2018. 
				 
				
On 10 May, EC World REIT announced the proposed acquisitions and master lease agreements of Fuzhou e-commerce with Land Area of 88,000 square metres. The proposed funding structure involves a combination of secured debt financing facilities from banks and/or cash. As detailed on Slide 16 of the EC World REIT investor presentation (click here), the post-acquisition Net Property Income is expected to rise 16.4% and DPU is expected to increase by 1.6% to 6.278 Singapore cents. This accretion is based on historical pro forma financial effects for FY18 assuming EC World REIT had purchased the Fuzhou E-Commerce on 1 January 2018, and held and operated the Fuzhou E-Commerce through to 31 December 2018
			
REITs &amp; Stapled Trusts Average 13.6% Total Returns in 2019 YTD 

			Singapore currently lists 34 REITs and 6 stapled trusts, with ARA US Hospitality Trust the most recent stapled trust to list. The 2019 year-to-date total returns of the trusts that have been listed of the duration is 13.6%. Note total returns takes into account dividend distributions which are assumed to be reinvested.  Average price return of the trusts, without taking into account the dividend distributions for the 2019 year-to-date is 10.0%. 

			The table below details the returns of each of the trusts. Note in addition to ARA US Hospitality Trust, the stapled trusts are CDL Hospitality Trusts, Frasers Hospitality Trust, OUE Hospitality Trust, Far East Hospitality Trust and Ascendas Hospitality Trust.

			The five strongest performers amongst the below tabled REITs and Stapled Trusts are Sasseur REIT, Keppel-KBS US REIT, Fortune REIT, Lippo Malls Indonesia Retail Trust and Ascendas Hospitality Trust. The five trusts averaged a 25.2% total return with the five least performing trusts averaging a 4.5% total return. 

			


						Name
						
						
						SGX Code
						
						
						Market Cap S$ 
						
						
						YTD

						Total

						Return %
						
						
						Dividend Yield
						
					


						ASCENDAS REAL ESTATE INV TRT
						
						
						A17U
						
						
						9.15B
						
						
						17.5
						
						
						5.5%
						
					


						CAPITALAND MALL TRUST
						
						
						C38U
						
						
						8.82B
						
						
						7.7
						
						
						4.8%
						
					


						CAPITALAND COMMERCIAL TRUST
						
						
						C61U
						
						
						7.27B
						
						
						13.5
						
						
						4.6%
						
					


						MAPLETREE COMMERCIAL TRUST
						
						
						N2IU
						
						
						5.62B
						
						
						20.6
						
						
						4.7%
						
					


						MAPLETREE LOGISTICS TRUST
						
						
						M44U
						
						
						5.29B
						
						
						19.2
						
						
						5.4%
						
					


						SUNTEC REIT
						
						
						T82U
						
						
						5.00B
						
						
						3.7
						
						
						5.4%
						
					


						MAPLETREE INDUSTRIAL TRUST
						
						
						ME8U
						
						
						4.20B
						
						
						12.2
						
						
						5.8%
						
					


						MAPLETREE NORTH ASIA COMMERCIAL
						
						
						RW0U
						
						
						4.19B
						
						
						19.3
						
						
						5.9%
						
					


						KEPPEL REIT
						
						
						K71U
						
						
						4.12B
						
						
						8.6
						
						
						4.6%
						
					


						FORTUNE REIT
						
						
						F25U
						
						
						3.66B
						
						
						25.5
						
						
						4.6%
						
					


						SPH REIT
						
						
						SK6U
						
						
						2.72B
						
						
						7.8
						
						
						5.3%
						
					


						ASCOTT RESIDENCE TRUST
						
						
						A68U
						
						
						2.61B
						
						
						14.9
						
						
						6.6%
						
					


						FRASERS LOGISTICS &amp; INDUSTRIAL TRUST
						
						
						BUOU
						
						
						2.37B
						
						
						17.1
						
						
						6.1%
						
					


						FRASERS CENTREPOINT TRUST
						
						
						J69U
						
						
						2.24B
						
						
						14.0
						
						
						5.0%
						
					


						KEPPEL DC REIT
						
						
						AJBU
						
						
						2.08B
						
						
						17.0
						
						
						4.7%
						
					


						CDL HOSPITALITY TRUSTS*
						
						
						J85
						
						
						1.95B
						
						
						14.4
						
						
						5.7%
						
					


						PARKWAYLIFE REIT
						
						
						C2PU
						
						
						1.75B
						
						
						12.8
						
						
						4.5%
						
					


						ESR-REIT
						
						
						J91U
						
						
						1.73B
						
						
						10.7
						
						
						7.5%
						
					


						CROMWELL EUROPEAN REIT
						
						
						CNNU
						
						
						1.67B
						
						
						14.4
						
						
						8.0%
						
					


						MANULIFE US REIT
						
						
						BTOU
						
						
						1.63B
						
						
						18.5
						
						
						7.1%
						
					


						STARHILL GLOBAL REIT
						
						
						P40U
						
						
						1.62B
						
						
						12.9
						
						
						6.1%
						
					


						CAPITALAND RETAIL CHINA TRUST
						
						
						AU8U
						
						
						1.48B
						
						
						12.5
						
						
						6.5%
						
					


						OUE COMMERCIAL REIT
						
						
						TS0U
						
						
						1.42B
						
						
						10.4
						
						
						7.0%
						
					


						FRASERS HOSPITALITY TRUST*
						
						
						ACV
						
						
						1.34B
						
						
						4.6
						
						
						6.3%
						
					


						FRASERS COMMERCIAL TRUST
						
						
						ND8U
						
						
						1.33B
						
						
						10.9
						
						
						6.6%
						
					


						OUE HOSPITALITY TRUST*
						
						
						SK7
						
						
						1.28B
						
						
						7.4
						
						
						7.2%
						
					


						FAR EAST HOSPITALITY TRUST*
						
						
						Q5T
						
						
						1.22B
						
						
						8.9
						
						
						5.7%
						
					


						ASCENDAS HOSPITALITY TRUST*
						
						
						Q1P
						
						
						1.03B
						
						
						22.4
						
						
						7.1%
						
					


						AIMS APAC REIT
						
						
						O5RU
						
						
						960.37M
						
						
						8.5
						
						
						7.4%
						
					


						SASSEUR REIT
						
						
						CRPU
						
						
						951.16M
						
						
						29.0
						
						
						8.6%
						
					


						KEPPEL-KBS US REIT
						
						
						CMOU
						
						
						833.48M
						
						
						26.3
						
						
						8.5%
						
					


						CACHE LOGISTICS TRUST
						
						
						K2LU
						
						
						786.83M
						
						
						9.4
						
						
						8.2%
						
					


						FIRST REAL ESTATE INVT TRUST
						
						
						AW9U
						
						
						784.85M
						
						
						4.9
						
						
						8.7%
						
					


						ARA US HOSPITALITY TRUST*
						
						
						XZL
						
						
						675.09M
						
						
						N/A
						
						
						8.0%**
						
					


						SOILBUILD BUSINESS SPACE REIT
						
						
						SV3U
						
						
						637.99M
						
						
						8.0
						
						
						8.1%
						
					


						EC WORLD REIT
						
						
						BWCU
						
						
						635.38M
						
						
						18.4
						
						
						7.5%
						
					


						LIPPO MALLS INDONESIA RETAIL
						
						
						D5IU
						
						
						622.40M
						
						
						22.9
						
						
						10.2%
						
					


						IREIT GLOBAL
						
						
						UD1U
						
						
						471.85M
						
						
						6.7
						
						
						7.7%
						
					


						SABANA SHARIAH COMP IND REIT
						
						
						M1GU
						
						
						447.56M
						
						
						12.8
						
						
						7.1%
						
					


						BHG RETAIL REIT
						
						
						BMGU
						
						
						358.81M
						
						
						2.7
						
						
						6.8%
						
					


						Average
						
						
						 
						
						
						 
						
						
						13.6
						
						
						6.5%
						
					

Source: SGX StockFacts, Thomson Reuters, Bloomberg (Data as of 22 May 2019) 
			*Stapled Trust ** based on prospectus – for more information click here.

			 
			
		



Five Property Acquisitions Expected to Boost REIT Yields





SGX lists 34 REITs, five stapled trusts and three property trusts with a combined market cap of nearly S$100 billion. Of these 42 trusts, 19 – with a combined market cap of over S$30 billion – own more than half their assets in markets outside Singapore. 
	 
	
Single-market REITs include Fortune REIT, Lippo Malls Indonesia Retail Trust, and Ascendas India Trust. Pure China plays are CapitaLand Retail China Trust, Sasseur REIT, EC World REIT, Dasin Retail Trust and BHG Retail Trust. Manulife US REIT and Keppel KBS US REIT are US-based trusts, while IREIT Global and Cromwell European REIT are focused on Europe. 
	 
	
Aside from geographical diversity, assets owned by the 19 trusts span various sub-segments –office towers, logistics warehouses, business parks, shopping malls, serviced residences and hotels, as well as hospitals, medical centres and nursing homes. 
	 
	In the YTD, the five best-performing international REITs were: Sasseur REIT (+29.0%), First REIT (+27.2%), EC World REIT (+22.6%), Mapletree North Asia Commercial Trust (+21.2%), and Ascendas Hospitality Trust (+20.1%). The five averaged a YTD return of +24.0%.

Geographical Diversity of S-REITs

There are 34 Real Estate Investment Trusts (REITs), five stapled trusts and three property trusts listed on SGX. The sector has a combined market capitalisation of nearly S$100 billion, with Retail, Industrial and Office REITs making up the largest segments.

Of these 42 trusts, 19 have more than half their assets located in markets outside Singapore – including the US, UK, Australia, North Asia and ASEAN – and have a combined market capitalisation of more than S$30 billion.

Among the 19, single-market REITs include Fortune REIT (100% Hong Kong assets), Lippo Malls Indonesia Retail Trust (100% Indonesia), and Ascendas India Trust (100% India). Pure China plays are CapitaLand Retail China Trust, Sasseur REIT, EC World REIT, Dasin Retail Trust and BHG Retail Trust. There are two US-based trusts – Manulife US REIT and Keppel KBS US REIT – and two European-focused REITs – IREIT Global (100% German assets) and Cromwell European REIT (100% Europe).

Their property assets are equally diversified across the various sub-segments: 12 own office towers, logistics warehouses and business parks, while five own shopping malls. Three have serviced residences and hotels in their portfolios, while one owns healthcare assets in the form of hospitals, medical centres and nursing homes.

Two international REITs – Mapletree Logistics Trust and Mapletree North Asia Commercial Trust – are also in the benchmark Straits Times Index (STI) Reserve List. For a previously published Market Update on the five REITs in the STI Reserve List, click here. For the S-REITs March quarter earnings schedule, click here. For a chartbook on S-REITs and Property Trusts listed on SGX, click here.

The table below lists the 19 REITs that own more than half their assets in markets outside Singapore, with a detailed geographical breakdown by portfolio value, and sorted by market capitalisation.




			Name
			
			
			SGX Code
			
			
			Market Cap (S$M)
			
			
			Property Sub-Segment
			
			
			Geographical Breakdown by Portfolio Value (%)*
			
		


			MAPLETREE LOGISTICS TRUST
			
			
			M44U
			
			
			5,289
			
			
			Industrial
			
			
			32.1% SG, 30% HK, 12.1% JP, 8.1% CN, 8.3% AU, 5.9% KR, 2.8% MY, 0.7% VN
			
		


			MAPLETREE NORTH ASIA COMMERCIAL TRUST
			
			
			RW0U
			
			
			4,285
			
			
			Diversified
			
			
			64% HK, 25% CN, 11% JP
			
		


			FORTUNE REIT
			
			
			F25U
			
			
			3,343
			
			
			Retail
			
			
			100% HK
			
		


			ASCOTT RESIDENCE TRUST
			
			
			A68U
			
			
			2,607
			
			
			Hospitality
			
			
			27.3% EU, 20.3% SG, 12.8% JP, 12.5% US, 10% CN, 5.7% VN, 5.3% AU, 3% PH, 2.1% ID, 1% MY
			
		


			FRASERS LOGISTICS &amp; INDUSTRIAL TRUST
			
			
			BUOU
			
			
			2,369
			
			
			Industrial
			
			
			67% AU, 33% EU
			
		


			CROMWELL EUROPEAN REIT
			
			
			CNNU
			
			
			1,650
			
			
			Diversified
			
			
			100% EU
			
		


			CAPITALAND RETAIL CHINA TRUST
			
			
			AU8U
			
			
			1,511
			
			
			Retail
			
			
			100% CN
			
		


			MANULIFE US REIT
			
			
			BTOU
			
			
			1,508
			
			
			Office
			
			
			100% US
			
		


			FRASERS HOSPITALITY TRUST^#
			
			
			ACV
			
			
			1,405
			
			
			Hospitality
			
			
			35% SG, 33% AU, 14% UK, 8% JP, 6% MY, 4% GER
			
		


			ASCENDAS INDIA TRUST^
			
			
			CY6U
			
			
			1,278
			
			
			Diversified
			
			
			100% IN
			
		


			ASCENDAS HOSPITALITY TRUST^#
			
			
			Q1P
			
			
			1,033
			
			
			Hospitality
			
			
			36.7% AU, 36% JP, 10.3% KR, 17% SG
			
		


			SASSEUR REIT
			
			
			CRPU
			
			
			951
			
			
			Retail
			
			
			100% CN
			
		


			FIRST REIT
			
			
			AW9U
			
			
			839
			
			
			Health Care
			
			
			96.8% ID, 2.6% SG, 0.6% KR
			
		


			KEPPEL-KBS US REIT
			
			
			CMOU
			
			
			757
			
			
			Office
			
			
			100% US
			
		


			EC WORLD REIT
			
			
			BWCU
			
			
			651
			
			
			Industrial
			
			
			100% CN
			
		


			LIPPO MALLS INDONESIA RETAIL TRUST
			
			
			D5IU
			
			
			627
			
			
			Retail
			
			
			100% ID
			
		


			DASIN RETAIL TRUST^
			
			
			CEDU
			
			
			492
			
			
			Retail
			
			
			100% CN
			
		


			IREIT GLOBAL
			
			
			UD1U
			
			
			475
			
			
			Office
			
			
			100% GER
			
		


			BHG RETAIL REIT
			
			
			BMGU
			
			
			356
			
			
			Retail
			
			
			100% CN
			
		

*Source: Company filings

#stapled trust

^property trust

Best-Performing, Highest-Yielding International S-REITs

Among the 19, the five best performers in the 2019 year-to-date were: Sasseur REIT (+29.0%), First REIT (+27.2%), EC World REIT (+22.6%), Mapletree North Asia Commercial Trust (+21.2%), and Ascendas Hospitality Trust (+20.1%). The five have averaged a YTD total return of +24.0%, bringing their one-year and three-year total returns to +6.9% and +25.5% respectively.

The five highest-yielding trusts among them are: Lippo Malls Indonesia Retail Trust (8.8%), Keppel-KBS US REIT (8.6%), First REIT (8.3%), Dasin Retail Trust (8.2%), and EC World REIT (8.1%). These five have averaged a dividend indicated yield of 8.4%.

The tables below detail the 19 REITs that own more than half their assets in geographies outside Singapore, sorted by market capitalisation.




			Name
			
			
			Stock code
			
			
			Market Cap (S$M)
			
			
			Total Return YTD (%)
			
			
			Total Return 1Y (%)
			
			
			Total Return 3Y (%)
			
		


			MAPLETREE LOGISTICS TRUST
			
			
			M44U
			
			
			5,289
			
			
			19.2
			
			
			24.9
			
			
			66.4
			
		


			MAPLETREE NORTH ASIA COMMERCIAL TRUST
			
			
			RW0U
			
			
			4,285
			
			
			21.2
			
			
			28.2
			
			
			72.1
			
		


			FORTUNE REIT~
			
			
			F25U
			
			
			3,343
			
			
			14.3
			
			
			15.9
			
			
			36.7
			
		


			ASCOTT RESIDENCE TRUST
			
			
			A68U
			
			
			2,607
			
			
			14.0
			
			
			12.1
			
			
			30.6
			
		


			FRASERS LOGISTICS &amp; INDUSTRIAL TRUST
			
			
			BUOU
			
			
			2,369
			
			
			14.6
			
			
			21.2
			
			
			NA
			
		


			CROMWELL EUROPEAN REIT~
			
			
			CNNU
			
			
			1,650
			
			
			11.8
			
			
			-11.8
			
			
			NA
			
		


			CAPITALAND RETAIL CHINA TRUST
			
			
			AU8U
			
			
			1,511
			
			
			16.9
			
			
			2.4
			
			
			NA
			
		


			MANULIFE US REIT~
			
			
			BTOU
			
			
			1,508
			
			
			14.8
			
			
			4.5
			
			
			26.8
			
		


			FRASERS HOSPITALITY TRUST
			
			
			ACV
			
			
			1,405
			
			
			7.1
			
			
			7.6
			
			
			20.0
			
		


			ASCENDAS INDIA TRUST
			
			
			CY6U
			
			
			1,278
			
			
			17.6
			
			
			28.5
			
			
			62.8
			
		


			ASCENDAS HOSPITALITY TRUST
			
			
			Q1P
			
			
			1,033
			
			
			20.1
			
			
			24.5
			
			
			68.6
			
		


			SASSEUR REIT
			
			
			CRPU
			
			
			951
			
			
			29.0
			
			
			7.8
			
			
			NA
			
		


			FIRST REIT
			
			
			AW9U
			
			
			839
			
			
			27.2
			
			
			-0.3
			
			
			NA
			
		


			KEPPEL-KBS US REIT~
			
			
			CMOU
			
			
			757
			
			
			0.1
			
			
			-25.5
			
			
			-6.7
			
		


			EC WORLD REIT
			
			
			BWCU
			
			
			651
			
			
			22.6
			
			
			-25.7
			
			
			-13.0
			
		


			LIPPO MALLS INDONESIA RETAIL TRUST
			
			
			D5IU
			
			
			627
			
			
			16.1
			
			
			16.3
			
			
			NA
			
		


			DASIN RETAIL TRUST
			
			
			CEDU
			
			
			492
			
			
			6.0
			
			
			10.4
			
			
			NA
			
		


			IREIT GLOBAL~
			
			
			UD1U
			
			
			475
			
			
			7.4
			
			
			4.4
			
			
			29.8
			
		


			BHG RETAIL REIT
			
			
			BMGU
			
			
			356
			
			
			2.0
			
			
			-2.3
			
			
			11.2
			
		


			Average
			
			
			 
			
			
			 
			
			
			14.9
			
			
			7.5
			
			
			21.3
			
		

 




			Name
			
			
			SGX Code
			
			
			Market Cap (S$M)
			
			
			Div Ind Yield (%) 
			
			
			P/B (x)
			
		


			MAPLETREE LOGISTICS TRUST
			
			
			M44U
			
			
			5,289
			
			
			5.5
			
			
			1.1
			
		


			MAPLETREE NORTH ASIA COMMERCIAL TRUST
			
			
			RW0U
			
			
			4,285
			
			
			5.6
			
			
			1.0
			
		


			FORTUNE REIT~
			
			
			F25U
			
			
			3,343
			
			
			5.1
			
			
			0.6
			
		


			ASCOTT RESIDENCE TRUST
			
			
			A68U
			
			
			2,607
			
			
			6.1
			
			
			1.0
			
		


			FRASERS LOGISTICS &amp; INDUSTRIAL TRUST
			
			
			BUOU
			
			
			2,369
			
			
			6.2
			
			
			1.3
			
		


			CROMWELL EUROPEAN REIT~
			
			
			CNNU
			
			
			1,650
			
			
			8.0
			
			
			1.0
			
		


			CAPITALAND RETAIL CHINA TRUST
			
			
			AU8U
			
			
			1,511
			
			
			6.6
			
			
			1.0
			
		


			MANULIFE US REIT~
			
			
			BTOU
			
			
			1,508
			
			
			6.4
			
			
			1.0
			
		


			FRASERS HOSPITALITY TRUST
			
			
			ACV
			
			
			1,405
			
			
			6.1
			
			
			1.0
			
		


			ASCENDAS INDIA TRUST
			
			
			CY6U
			
			
			1,278
			
			
			5.8
			
			
			1.3
			
		


			ASCENDAS HOSPITALITY TRUST
			
			
			Q1P
			
			
			1,033
			
			
			6.3
			
			
			1.0
			
		


			SASSEUR REIT
			
			
			CRPU
			
			
			951
			
			
			7.5*
			
			
			0.8
			
		


			FIRST REIT
			
			
			AW9U
			
			
			839
			
			
			8.3
			
			
			1.0
			
		


			KEPPEL-KBS US REIT~
			
			
			CMOU
			
			
			757
			
			
			8.6
			
			
			0.9
			
		


			EC WORLD REIT
			
			
			BWCU
			
			
			651
			
			
			8.1
			
			
			0.8
			
		


			LIPPO MALLS INDONESIA RETAIL TRUST
			
			
			D5IU
			
			
			627
			
			
			8.8
			
			
			0.9
			
		


			DASIN RETAIL TRUST
			
			
			CEDU
			
			
			492
			
			
			8.2
			
			
			0.6
			
		


			IREIT GLOBAL~
			
			
			UD1U
			
			
			475
			
			
			7.7
			
			
			1.0
			
		


			BHG RETAIL REIT
			
			
			BMGU
			
			
			356
			
			
			7.3
			
			
			0.9
			
		


			Average
			
			
			 
			
			
			 
			
			
			7.0
			
			
			1.0
			
		

Source: Bloomberg &amp; StockFacts (data as of 26 April 2019)

*Sasseur REIT yield based on IPO prospectus data

~Fortune REIT is traded in HKD, Manulife US REIT and Keppel-KBS US REIT are traded in USD, IREIT Global and Cromwell European REIT are traded in EUR, with their SGD equivalents shown in tables.

Robust Investor Interest, Dovish Fed

Since late last year, analysts have noted revived investor interest in S-REITs, driven by a flight to safety amidst the uncertain outlook for US-Sino trade negotiations, the hunt for higher yields, and global market volatility. In the first quarter of 2019, S-REITs have received net institutional inflows totalling S$239.6 million. It was also the top net buy sector in January, according to SGX data.

The relatively strong fundamentals of S-REITs – about 80% have hedged at least 70% of their debt with fixed rates, while all are required by regulation to have a maximum gearing ratio of 45% – should also help mitigate the impact of the higher interest-rate environment.

Further boosting the sector were dovish signals from the US Federal Reserve during its most recent policy-setting meeting in March, which represented a pivot from its policy stance late last year. Fed officials now expect not to raise rates at all this year, after lifting interest rates four times over the course of 2018.

Following its two-day Federal Open Market Committee (FOMC) meeting later this week, the Fed is widely anticipated to hold interest rates steady. In recent weeks, officials have given no signal of any change to the US central bank’s benchmark overnight lending rate, currently set in a range of 2.25%-2.50%. Fed officials will not update their quarterly forecasts, including the “dot-plot” of interest-rate projections, until they next meet in June.

 



Five International S-REITs Returned 24% in YTD

Singapore

Mapletree Logistics Trust is an Asia-focused logistics real estate investment trust. The Company invests in a diversified portfolio of income-producing real estate which is used for logistics purposes.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Mapletree Logistics Trust (MLT SP)

Real Estate, Manufacturing and F&B Shares on the Move in 1H19

Real Estate, Manufacturing and Food & Beverage stocks made up close to half of Singapore’s top 200 stocks by turnover in the first 5 months...

Singapore Exchange Ltd (SGX)

10 Largest REITs See 30% Surge in Average Daily Turnover in YTD vs 2018

SGX lists 34 REITs, seven stapled trusts and three property trusts with a combined market cap of about S$100 billion. Two stapled trusts were...

Singapore Exchange Ltd (SGX)

Five Property Acquisitions Expected to Boost REIT Yields

Singapore’s REITs are characterised by comparatively high and stable distribution yields, in addition to potential for portfolio growth. While...

Singapore Exchange Ltd (SGX)

Five International S-REITs Returned 24% in YTD

SGX lists 34 REITs, five stapled trusts and three property trusts with a combined market cap of nearly S$100 billion. Of these 42 trusts, 19 –...

Singapore Exchange Ltd (SGX)

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Real Estate, Manufacturing and F&B Shares on the Move in 1H19

Real Estate, Manufacturing and Food & Beverage stocks made up close to half of Singapore’s top 200 stocks by turnover in the first 5 months...

Singapore Exchange Ltd (SGX)

SGX’s 10 China-Related S-REITs Returned 16% in YTD

SGX lists 34 REITs, seven stapled trusts and three property trusts with a combined market cap of over S$100 billion. Of the 34 REITs, 10 report...

Singapore Exchange Ltd (SGX)

10 Largest REITs See 30% Surge in Average Daily Turnover in YTD vs 2018

SGX lists 34 REITs, seven stapled trusts and three property trusts with a combined market cap of about S$100 billion. Two stapled trusts were...

Singapore Exchange Ltd (SGX)

Five Property Acquisitions Expected to Boost REIT Yields

Singapore’s REITs are characterised by comparatively high and stable distribution yields, in addition to potential for portfolio growth. While...

Singapore Exchange Ltd (SGX)

Five International S-REITs Returned 24% in YTD

SGX lists 34 REITs, five stapled trusts and three property trusts with a combined market cap of nearly S$100 billion. Of these 42 trusts, 19 –...

Singapore Exchange Ltd (SGX)