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)

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Equity Bottom-Up

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Five S-REITs have kicked off this quarter’s reporting season with the release of financial results for the quarter or business updates, before the market opened last Friday. The five are SPH REIT, AIMS APAC REIT, Ascendas REIT, Sabana REIT, Suntec REIT. 
These five S-Reits have reported increased distributions per unit (DPU) and improved operating metrics amid a cautiously optimistic outlook for the year end.

SPH Reit kicks off with improved full-year results led by gradual market recovery in both of its markets in Singapore and Australia. It noted that tenant sales in its Australia portfolio have recovered to pre-Covid levels despite a seven-day lockdown in July. 
It announced fiscal 2021 DPU at 5.4 cents, increasing 98 per cent year on year and 3.6 per cent away from its previous fiscal year 2019 DPU (pre-Covid).

AIMS Apac Reit announced 4.75 cents in DPU to be distributed for first half FY2022, an 18.8 per cent increase from a year ago, buoyed by higher net property income which rose 19.4 per cent to S$47.7 million year on year.

The Reit recently announced its proposed acquisition of Woolworths Headquarters in New South Wales, Australia, which will be its largest asset across its entire portfolio. 
Ascendas Reit in its business update observed improved portfolio occupancy rates of 91.7 per cent and positive rental reversions, with the completion of Grab's headquarters at one-north, Singapore.

It noted improved occupancy levels across its Singapore and Australia properties while lower to flat levels in its United States and United Kingdom/Europe properties.

Last Friday, Ascendas Reit announced the proposed acquisition of 11 last mile logistics properties in Kansas City, US for S$207.8 million, marking its first entry into the US logistics market and complementing the Reit's existing portfolio.

The Kansas portfolio is 92.6 per cent occupied by 27 customers from industries including third-party logistics, wholesale distribution, manufacturing and healthcare.

The 11 properties were reported to have strong retention rates, with current tenants in place for an average of 12.5 years.

Sabana Reit's business updates reported improved portfolio occupancy rates of 85.3 per cent, its highest level since early 2018 when the Reit's refreshed strategy was first announced.

The Reit also updated that it has renewed leases with positive rental reversion of 7.8 per cent, which is the sixth time it has achieved positive reversion over the past seven quarters.

The removal of its syariah compliance was completed on Oct 21.

Suntec Reit inked 22 per cent higher distributable income from operations and announced 2.232 cents in third quarter 2021 DPU to unitholders which is 20.8 per cent higher year on year.

The Reit expects the return of Singapore's workforce to increase over time and positive rent reversion for its office portfolio for full year 2021.

In its local retail portfolio, it observed improved footfall during the first two weeks of Covid 'Stabilisation Phase' in October compared to earlier periods and expects mall occupancy to be on track to remain around 95 per cent by end 2021. REIT Watch is a weekly column on The Business Times,<a href="https://www.businesstimes.com.sg/companies-markets/improved-operating-metrics-and-dpus-as-s-reits-kick-off-reporting"> read </a>the original version.
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    SREIT that have kicked off the reporting season


Five S-REITs have kicked off this quarter’s reporting season with the release of financial results for the quarter or business updates, before the market opened last Friday. The five are SPH REIT, AIMS APAC REIT, Ascendas REIT, Sabana REIT, Suntec REIT.  
These five S-Reits have reported increased distributions per unit (DPU) and improved operating metrics amid a cautiously optimistic outlook for the year end.

SPH Reit kicks off with improved full-year results led by gradual market recovery in both of its markets in Singapore and Australia. It noted that tenant sales in its Australia portfolio have recovered to pre-Covid levels despite a seven-day lockdown in July.  
It announced fiscal 2021 DPU at 5.4 cents, increasing 98 per cent year on year and 3.6 per cent away from its previous fiscal year 2019 DPU (pre-Covid).

AIMS Apac Reit announced 4.75 cents in DPU to be distributed for first half FY2022, an 18.8 per cent increase from a year ago, buoyed by higher net property income which rose 19.4 per cent to S$47.7 million year on year.

The Reit recently announced its proposed acquisition of Woolworths Headquarters in New South Wales, Australia, which will be its largest asset across its entire portfolio.  
Ascendas Reit in its business update observed improved portfolio occupancy rates of 91.7 per cent and positive rental reversions, with the completion of Grab's headquarters at one-north, Singapore.

It noted improved occupancy levels across its Singapore and Australia properties while lower to flat levels in its United States and United Kingdom/Europe properties.

Last Friday, Ascendas Reit announced the proposed acquisition of 11 last mile logistics properties in Kansas City, US for S$207.8 million, marking its first entry into the US logistics market and complementing the Reit's existing portfolio.

The Kansas portfolio is 92.6 per cent occupied by 27 customers from industries including third-party logistics, wholesale distribution, manufacturing and healthcare.

The 11 properties were reported to have strong retention rates, with current tenants in place for an average of 12.5 years.

Sabana Reit's business updates reported improved portfolio occupancy rates of 85.3 per cent, its highest level since early 2018 when the Reit's refreshed strategy was first announced.

The Reit also updated that it has renewed leases with positive rental reversion of 7.8 per cent, which is the sixth time it has achieved positive reversion over the past seven quarters.

The removal of its syariah compliance was completed on Oct 21.

Suntec Reit inked 22 per cent higher distributable income from operations and announced 2.232 cents in third quarter 2021 DPU to unitholders which is 20.8 per cent higher year on year.

The Reit expects the return of Singapore's workforce to increase over time and positive rent reversion for its office portfolio for full year 2021.

In its local retail portfolio, it observed improved footfall during the first two weeks of Covid 'Stabilisation Phase' in October compared to earlier periods and expects mall occupancy to be on track to remain around 95 per cent by end 2021.  REIT Watch is a weekly column on The Business Times, read the original version.



REIT Watch - Improved operating metrics and DPUs as S-Reits kick off reporting

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At over 80 per cent of the population, Singapore has one of the highest Covid-19 vaccination rates globally. Booster shots are also underway as part of efforts towards a progressive full reopening and strategy to treat Covid-19 as endemic.

Sectors such as retail, travel and hospitality remain poised to benefit in the long run as borders reopen progressively and social activities return.

Singapore is working on establishing a vaccinated travel lane with several countries including some European countries, the United States and South Korea. 
In the near term and somewhat physically closer to our homes, suburban malls have demonstrated relevance and resilience amid extended restrictions and Work-From-Home (WFH) trends with exposure to essential trades such as supermarkets and food and beverage outlets. 
There are five S-REITs with exposure to suburban-focused retail malls in Singapore – Frasers Centrepoint Trust, CapitaLand Integrated Commercial Trust, SPH REIT, Mapletree Commercial Trust, and Lendlease Global Commercial REIT through its 31.8 per cent indirect interest in JEM. These five have averaged 7.6 per cent in total returns in the year-to-date. 
These five have averaged 7.6 per cent in total returns in the year to date (YTD). 
Suburban malls are located near residential neighbourhoods and provide residents with necessities and convenience.

SPH Reit, which owns a portfolio of retail malls in Singapore and Australia, recently reported full-year fiscal year (FY) 2021 results.

Gross revenue increased 14.8 per cent year on year to S$277.2 million and net property income increased 11.4 per cent year on year to S$202.6 million.

Distribution per unit (DPU) for Q4 FY 2021 was 1.58 cents, bringing its full year DPU to 5.40 cents which is 98 per cent higher year on year and 3.6 per cent away from FY 2019's DPU (pre-Covid).

Despite softer leasing sentiments across its portfolio, SPH Reit noted that the defensive nature of suburban malls has supported tenant sales at The Clementi Mall, bringing it to pre-Covid levels and in line with resilient suburban malls' performances.

The Clementi Mall observed a 33 per cent decrease in footfall but a 5 per cent increase in tenant sales, mitigated by its close proximity to residential homes.

CapitaLand Integrated Commercial Trust has a portfolio of suburban retail malls including Bedok Mall, Junction 8, Tampines Mall, and Westgate.

In the Reit's earlier first half (H1) 2021 results announcement, it noted that retail tenant sales continued to outpace shopper traffic, with both improving more than 104 per cent year on year on a low base effect.

H1 2021 tenant sales have recovered to 86.3 per cent against the 2019 average while shopper traffic was at 61.3 per cent against 2019.

Frasers Centrepoint Trust has a portfolio of nine Singapore suburban retail malls.

In its earlier business update, the Reit's tenant sales had recovered to near pre-Covid levels at end 2020 and in early 2021, despite being impacted in the third quarter (Q3) 2021 from April to June due to the tightened control measures during Phase 2 (Heightened Alert).

Mapletree Commercial Trust's VivoCity mall also noted year-on-year improvements in shopper traffic and tenant sales in Q1 FY21/22 but recovery momentum was disrupted by re-tightened Covid-19 measures.

Aside from SPH Reit, the rest of the S-Reits will be reporting quarterly results and business updates over the next few weeks.  REIT Watch is a weekly column on The Business Times,<a href="https://www.businesstimes.com.sg/companies-markets/china-focused-s-reits-resilient-amid-onshore-property-focus"> </a><a href="https://www.businesstimes.com.sg/companies-markets/suburban-focused-retail-s-reits-average-76-in-total-returns-ytd">read </a>the original version.
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    Retail SREIT


At over 80 per cent of the population, Singapore has one of the highest Covid-19 vaccination rates globally. Booster shots are also underway as part of efforts towards a progressive full reopening and strategy to treat Covid-19 as endemic.

Sectors such as retail, travel and hospitality remain poised to benefit in the long run as borders reopen progressively and social activities return.

Singapore is working on establishing a vaccinated travel lane with several countries including some European countries, the United States and South Korea.  
In the near term and somewhat physically closer to our homes, suburban malls have demonstrated relevance and resilience amid extended restrictions and Work-From-Home (WFH) trends with exposure to essential trades such as supermarkets and food and beverage outlets.  
There are five S-REITs with exposure to suburban-focused retail malls in Singapore – Frasers Centrepoint Trust, CapitaLand Integrated Commercial Trust, SPH REIT, Mapletree Commercial Trust, and Lendlease Global Commercial REIT through its 31.8 per cent indirect interest in JEM. These five have averaged 7.6 per cent in total returns in the year-to-date.  
These five have averaged 7.6 per cent in total returns in the year to date (YTD).  
Suburban malls are located near residential neighbourhoods and provide residents with necessities and convenience.

SPH Reit, which owns a portfolio of retail malls in Singapore and Australia, recently reported full-year fiscal year (FY) 2021 results.

Gross revenue increased 14.8 per cent year on year to S$277.2 million and net property income increased 11.4 per cent year on year to S$202.6 million.

Distribution per unit (DPU) for Q4 FY 2021 was 1.58 cents, bringing its full year DPU to 5.40 cents which is 98 per cent higher year on year and 3.6 per cent away from FY 2019's DPU (pre-Covid).

Despite softer leasing sentiments across its portfolio, SPH Reit noted that the defensive nature of suburban malls has supported tenant sales at The Clementi Mall, bringing it to pre-Covid levels and in line with resilient suburban malls' performances.

The Clementi Mall observed a 33 per cent decrease in footfall but a 5 per cent increase in tenant sales, mitigated by its close proximity to residential homes.

CapitaLand Integrated Commercial Trust has a portfolio of suburban retail malls including Bedok Mall, Junction 8, Tampines Mall, and Westgate.

In the Reit's earlier first half (H1) 2021 results announcement, it noted that retail tenant sales continued to outpace shopper traffic, with both improving more than 104 per cent year on year on a low base effect.

H1 2021 tenant sales have recovered to 86.3 per cent against the 2019 average while shopper traffic was at 61.3 per cent against 2019.

Frasers Centrepoint Trust has a portfolio of nine Singapore suburban retail malls.

In its earlier business update, the Reit's tenant sales had recovered to near pre-Covid levels at end 2020 and in early 2021, despite being impacted in the third quarter (Q3) 2021 from April to June due to the tightened control measures during Phase 2 (Heightened Alert).

Mapletree Commercial Trust's VivoCity mall also noted year-on-year improvements in shopper traffic and tenant sales in Q1 FY21/22 but recovery momentum was disrupted by re-tightened Covid-19 measures.

Aside from SPH Reit, the rest of the S-Reits will be reporting quarterly results and business updates over the next few weeks.   REIT Watch is a weekly column on The Business Times, read the original version.



REIT Watch - Suburban-focused retail S-Reits average 7.6% in total returns YTD

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On Sept 1, FTSE Russell announced that 11 SGX-listed Reits &amp; Property Trusts, with market capitalisation ranging from S$2.6 billion to S$1.1 billion, entered the FTSE EPRA Nareit Global Developed Index after its quarterly index review.

This followed from a change in index rules announced in June 2021, which lowered the inclusion market cap threshold for the Developed Asia series from 0.3 to 0.1 per cent.

A total of 24 Reits were added into the FTSE EPRA Nareit Global Developed Index following the review, including seven from Australia, two from Hong Kong, three from Japan, one from New Zealand and 11 from Singapore.

The FTSE EPRA Nareit Global Real Estate Index Series, designed to represent general trends in eligible real estate equities worldwide, is a widely followed global benchmark with an estimated US$340 billion of assets under management actively benchmarked or passively tracking the indices. 
As of June 2021, there were 23 SGX-listed real estate related equities in the index series, which included 19 S-Reits. 
The recent index review will bring the total number of SGX-listed Reits in the index series to 30, with a combined market capitalisation of S$108 billion.

After the announcement, the 11 new inclusions saw a boost in trading activities on Sept 2, with a 353 per cent increase in traded value compared to their 12-month total average daily traded value (ADTV).

The three S-REITs which saw the biggest increase in ADTV on 2 Sep were ARA LOGOS Logistics Trust (+541 per cent), Starhill Global REIT (+431 per cent) and SPH REIT (+426 per cent), while the three S-REITs which saw the largest price jumps on 2 Sep were ESR-REIT (+8.5 per cent), ARA LOGOS Logistics Trust (+6.1 per cent) and OUE Commercial REIT (+6.1 per cent).

ARA Logos Logistics Trust (ALOG), with year-to-date total returns of 65.5 per cent, is among the best performing S-Reit this year.

Karen Lee, chief executive officer of ARA Logos Logistics Trust's (ALOG) manager, commented that ALOG's entry into the index will not only enhance ALOG's trading liquidity and extend its institutional investor reach but will also further strengthen ALOG's growth story.

Similarly, Adrian Chui, chief executive officer and executive director of ESR-Reit's manager, noted that the inclusion in the index will enhance the Reit's trading liquidity and visibility to investors worldwide, solidifying its position among listed industrial Reits in Singapore and providing access to wider pools of capital as ESR-Reit executes organic and acquisition strategies.  REIT Watch is a weekly column on The Business Times, <a href="https://www.businesstimes.com.sg/companies-markets/heavy-trading-in-new-s-reit-inclusions-in-global-reit-benchmark">read</a><a href="https://www.businesstimes.com.sg/companies-markets/10-s-reits-yielding-long-term-annualised-returns"> </a>the original version.
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    FTSE EPRA


On Sept 1, FTSE Russell announced that 11 SGX-listed Reits &amp; Property Trusts, with market capitalisation ranging from S$2.6 billion to S$1.1 billion, entered the FTSE EPRA Nareit Global Developed Index after its quarterly index review.

This followed from a change in index rules announced in June 2021, which lowered the inclusion market cap threshold for the Developed Asia series from 0.3 to 0.1 per cent.

A total of 24 Reits were added into the FTSE EPRA Nareit Global Developed Index following the review, including seven from Australia, two from Hong Kong, three from Japan, one from New Zealand and 11 from Singapore.

The FTSE EPRA Nareit Global Real Estate Index Series, designed to represent general trends in eligible real estate equities worldwide, is a widely followed global benchmark with an estimated US$340 billion of assets under management actively benchmarked or passively tracking the indices.  
As of June 2021, there were 23 SGX-listed real estate related equities in the index series, which included 19 S-Reits.  
The recent index review will bring the total number of SGX-listed Reits in the index series to 30, with a combined market capitalisation of S$108 billion.

After the announcement, the 11 new inclusions saw a boost in trading activities on Sept 2, with a 353 per cent increase in traded value compared to their 12-month total average daily traded value (ADTV).

The three S-REITs which saw the biggest increase in ADTV on 2 Sep were ARA LOGOS Logistics Trust (+541 per cent), Starhill Global REIT (+431 per cent) and SPH REIT (+426 per cent), while the three S-REITs which saw the largest price jumps on 2 Sep were ESR-REIT (+8.5 per cent), ARA LOGOS Logistics Trust (+6.1 per cent) and OUE Commercial REIT (+6.1 per cent).

ARA Logos Logistics Trust (ALOG), with year-to-date total returns of 65.5 per cent, is among the best performing S-Reit this year.

Karen Lee, chief executive officer of ARA Logos Logistics Trust's (ALOG) manager, commented that ALOG's entry into the index will not only enhance ALOG's trading liquidity and extend its institutional investor reach but will also further strengthen ALOG's growth story.

Similarly, Adrian Chui, chief executive officer and executive director of ESR-Reit's manager, noted that the inclusion in the index will enhance the Reit's trading liquidity and visibility to investors worldwide, solidifying its position among listed industrial Reits in Singapore and providing access to wider pools of capital as ESR-Reit executes organic and acquisition strategies.   REIT Watch is a weekly column on The Business Times, read the original version.



REIT Watch - Heavy trading in new S-Reit inclusions in global Reit benchmark

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As the earnings season conclude, REITs and Property Trusts listed in Singapore have announced financial results or published business updates for the period ending 30 June 2021. Of the S-REITs which declared distributions for the first half of calendar year 2021, average change in distribution per unit (DPU) increased by 36 per cent year-on-year (y-o-y).

The five S-REITs with the highest y-o-y DPU increments for the period Jan to Jun 2021 are: SPH REIT (228 per cent), Sabana Shari'ah Compliant Industrial REIT (215 per cent), Starhill Global REIT (196 per cent), Ascott Residence Trust (95 per cent) and CapitaLand Integrated Commercial Trust (75 per cent).

SPH REIT declared a DPU of 1.38 Singapore cents for Q3 FY2021 ended 31 May, bringing its DPU for the period of Dec 2020 to May 2021 to 2.62 Singapore cents - a 228 per cent increase y-o-y. In its latest business update for 3Q FY2021, the REIT noted gradual recovery with improvements in gross revenue of 22.2 per cent y-o-y to S$209.6 million. This was led by recovery in performance across all assets while supported by additional quarter of contribution from Westfield Marion compared to the same period last year and a decrease in rent reliefs to Singapore and Australia eligible tenants.

Sabana Shari'ah Compliant Industrial REIT (Sabana REIT) reported DPU of 1.48 Singapore cents for 1H 2021, representing a 215 per cent y-o-y increase. This was mainly due to the temporary retainment of 55.0 per cent of its distributable income in 1H 2020 to conserve capital. The REIT also reported a 14.1 per cent y-o-y increase in gross revenue, mainly due to higher contribution from New Tech Park, 23 Serangoon North Avenue 5 and 10 Changi South Street 2 on higher occupancy. During the period, Sabana REIT announced the removal of its Shari’ah compliance requirement in order to accommodate the changing profile of tenants and enhance its flexibility for the next phase of growth.

Starhill Global REIT (SGREIT) reported 2H FY2020/2021 DPU of 2.07 Singapore cents, representing a y-o-y increase of 196 per cent, mainly due to the release of retained income for working capital requirements. SGREIT noted that gross revenue for the period increased 10.5 per cent y-o-y, resulting in a 20.2 per cent increase in its net property income (NPI). This was mainly attributed to lower rental assistance for eligible tenants affected by the COVID-19 pandemic and the appreciation of the Australian dollar against the Singapore dollar.

Ascott Residence Trust (ART) raised its DPU for 1H 2021 by 95 per cent y-o-y, attributable to active portfolio optimisation. The trust noted that distributable income for 1H 2021 included a one-off partial distribution of divestment gains of S$20 million to share divestment gains with unitholders, replace income loss from divested assets and mitigate the impact of COVID-19 on distributions.

CapitaLand Integrated Commercial Trust (CICT) announced a DPU of 5.18 Singapore cents for 1H 2021, representing a 75 per cent increase y-o-y. The REIT reported a 103 per cent and 118 per cent y-o-y increase in gross revenue and NPI respectively. In 1H 2021, CICT granted S$18.9 million of rental waivers for tenants affected by COVID-19, particularly during Singapore’s first Phase 2 (Heightened Alert) from 16 May to 13 June 2021. For more research and information on Singapore’s REIT sector, visit <a href="https://www.sgx.com/research-education/sectors">sgx.com/research-education/sectors</a> for the monthly SREITs &amp; Property Trusts Chartbook
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    Top 5 S-REITs with largest yoy increase in DPU for 1H2021


As the earnings season conclude, REITs and Property Trusts listed in Singapore have announced financial results or published business updates for the period ending 30 June 2021. Of the S-REITs which declared distributions for the first half of calendar year 2021, average change in distribution per unit (DPU) increased by 36 per cent year-on-year (y-o-y).

The five S-REITs with the highest y-o-y DPU increments for the period Jan to Jun 2021 are: SPH REIT (228 per cent), Sabana Shari'ah Compliant Industrial REIT (215 per cent), Starhill Global REIT (196 per cent), Ascott Residence Trust (95 per cent) and CapitaLand Integrated Commercial Trust (75 per cent).

SPH REIT declared a DPU of 1.38 Singapore cents for Q3 FY2021 ended 31 May, bringing its DPU for the period of Dec 2020 to May 2021 to 2.62 Singapore cents - a 228 per cent increase y-o-y. In its latest business update for 3Q FY2021, the REIT noted gradual recovery with improvements in gross revenue of 22.2 per cent y-o-y to S$209.6 million. This was led by recovery in performance across all assets while supported by additional quarter of contribution from Westfield Marion compared to the same period last year and a decrease in rent reliefs to Singapore and Australia eligible tenants.

Sabana Shari'ah Compliant Industrial REIT (Sabana REIT) reported DPU of 1.48 Singapore cents for 1H 2021, representing a 215 per cent y-o-y increase. This was mainly due to the temporary retainment of 55.0 per cent of its distributable income in 1H 2020 to conserve capital. The REIT also reported a 14.1 per cent y-o-y increase in gross revenue, mainly due to higher contribution from New Tech Park, 23 Serangoon North Avenue 5 and 10 Changi South Street 2 on higher occupancy. During the period, Sabana REIT announced the removal of its Shari’ah compliance requirement in order to accommodate the changing profile of tenants and enhance its flexibility for the next phase of growth.

Starhill Global REIT (SGREIT) reported 2H FY2020/2021 DPU of 2.07 Singapore cents, representing a y-o-y increase of 196 per cent, mainly due to the release of retained income for working capital requirements. SGREIT noted that gross revenue for the period increased 10.5 per cent y-o-y, resulting in a 20.2 per cent increase in its net property income (NPI). This was mainly attributed to lower rental assistance for eligible tenants affected by the COVID-19 pandemic and the appreciation of the Australian dollar against the Singapore dollar.

Ascott Residence Trust (ART) raised its DPU for 1H 2021 by 95 per cent y-o-y, attributable to active portfolio optimisation. The trust noted that distributable income for 1H 2021 included a one-off partial distribution of divestment gains of S$20 million to share divestment gains with unitholders, replace income loss from divested assets and mitigate the impact of COVID-19 on distributions.

CapitaLand Integrated Commercial Trust (CICT) announced a DPU of 5.18 Singapore cents for 1H 2021, representing a 75 per cent increase y-o-y. The REIT reported a 103 per cent and 118 per cent y-o-y increase in gross revenue and NPI respectively. In 1H 2021, CICT granted S$18.9 million of rental waivers for tenants affected by COVID-19, particularly during Singapore’s first Phase 2 (Heightened Alert) from 16 May to 13 June 2021.  For more research and information on Singapore’s REIT sector, visit sgx.com/research-education/sectors for the monthly SREITs &amp; Property Trusts Chartbook



REIT Watch - S-REITs release retained earnings, 1H2021 DPU up 36%

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ENTERING the earnings season the first quarter of 2021, 14 S-Reits had reported their distributions per unit (DPUs) as at end April, averaging a 31 per cent increase year on year (yoy). Another 10 S-Reits are expected to announce quarterly business updates or financial results in May.

Of the 14 S-Reits that reported, 12 saw a yoy increase in DPU. The five S-Reits with the highest yoy DPU increments are: SPH Reit (+313.3 per cent), Mapletree Commercial Trust (+57.9 per cent), ARA Logos Logistics Trust (+35.7 per cent), Frasers Centrepoint Trust (28.4 per cent) and Keppel DC Reit (18.1 per cent).

SPH Reit declared a DPU of 1.24 Singapore cents for Q2 FY2021 ended Feb 28 - a 313.3 per cent increase yoy. Its near-term focus is to maintain healthy occupancy and sustainable rental income in partnership with tenants. SPH Reit's portfolio occupancy rate stands at 98 per cent as at Feb 28, compared to 98.9 per cent a year ago.

Mapletree Commercial Trust (MCT) declared a DPU of 5.32 Singapore cents for H2 FY21 ended March 31, up 57.9 per cent yoy, bringing full year DPU to 9.49 Singapore cents. The latest declared DPU includes the release of S$13.0 million from the retained cash carried forward from Q4 FY20.

MCT said monthly tenant sales in Q4 FY21 have recovered to more than 86 per cent of pre-Covid levels.

ARA Logos Logistics Trust (ALOG) declared a DPU of 1.353 Singapore cents for Q1 FY21, representing a 35.7 per cent increment yoy. The increase in DPU, though partly due to the retention of S$2.5 million distributable income in Q1 FY20, was also contributed by the 8.7 per cent yoy rise in NPI.

ALOG said the stronger portfolio performance was due to the commencement of new leases at several properties as well as higher revenue generated from the Australia portfolio on the back of the strengthening Australian dollar. As at end-March, ALOG's portfolio committed occupancy rose to 99.1 per cent.

Frasers Centrepoint Trust (FCT) declared H1 FY21 DPU of 5.996 Singapore cents, up 28.4 per cent yoy. This marks its first set of financial results since the acquisition of the remaining 63.11 per cent stake in AsiaRetail Fund Ltd in October. FCT said its retail portfolio occupancy remained stable at 96.1 per cent. FCT expects the vaccination programme in Singapore and continued re-opening of the economy to support the recovery of shopper traffic and tenants' sales.

Keppel DC Reit (KDCREIT) reported DPU of 2.462 Singapore cents for Q1 FY21, representing an 18.1 per cent yoy increase. The DPU increment was attributed to contributions from new accretive acquisitions and asset enhancement initiatives in 2020. Note that KDCREIT pays distributions on a semi-annual basis, and no distribution will be paid for Q1 FY2021. 

REIT Watch is a weekly column on The Business Times, <a href="https://www.businesstimes.com.sg/companies-markets/14-s-reit-dpus-up-average-31-year-on-year">read</a><a href="https://www.businesstimes.com.sg/companies-markets/bulk-of-s-reits-in-key-global-real-estate-indices"> </a>the original version.
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    S-REITS distributions


ENTERING the earnings season the first quarter of 2021, 14 S-Reits had reported their distributions per unit (DPUs) as at end April, averaging a 31 per cent increase year on year (yoy). Another 10 S-Reits are expected to announce quarterly business updates or financial results in May.

Of the 14 S-Reits that reported, 12 saw a yoy increase in DPU. The five S-Reits with the highest yoy DPU increments are: SPH Reit (+313.3 per cent), Mapletree Commercial Trust (+57.9 per cent), ARA Logos Logistics Trust (+35.7 per cent), Frasers Centrepoint Trust (28.4 per cent) and Keppel DC Reit (18.1 per cent).

SPH Reit declared a DPU of 1.24 Singapore cents for Q2 FY2021 ended Feb 28 - a 313.3 per cent increase yoy. Its near-term focus is to maintain healthy occupancy and sustainable rental income in partnership with tenants. SPH Reit's portfolio occupancy rate stands at 98 per cent as at Feb 28, compared to 98.9 per cent a year ago.

Mapletree Commercial Trust (MCT) declared a DPU of 5.32 Singapore cents for H2 FY21 ended March 31, up 57.9 per cent yoy, bringing full year DPU to 9.49 Singapore cents. The latest declared DPU includes the release of S$13.0 million from the retained cash carried forward from Q4 FY20.

MCT said monthly tenant sales in Q4 FY21 have recovered to more than 86 per cent of pre-Covid levels.

ARA Logos Logistics Trust (ALOG) declared a DPU of 1.353 Singapore cents for Q1 FY21, representing a 35.7 per cent increment yoy. The increase in DPU, though partly due to the retention of S$2.5 million distributable income in Q1 FY20, was also contributed by the 8.7 per cent yoy rise in NPI.

ALOG said the stronger portfolio performance was due to the commencement of new leases at several properties as well as higher revenue generated from the Australia portfolio on the back of the strengthening Australian dollar. As at end-March, ALOG's portfolio committed occupancy rose to 99.1 per cent.

Frasers Centrepoint Trust (FCT) declared H1 FY21 DPU of 5.996 Singapore cents, up 28.4 per cent yoy. This marks its first set of financial results since the acquisition of the remaining 63.11 per cent stake in AsiaRetail Fund Ltd in October. FCT said its retail portfolio occupancy remained stable at 96.1 per cent. FCT expects the vaccination programme in Singapore and continued re-opening of the economy to support the recovery of shopper traffic and tenants' sales.

Keppel DC Reit (KDCREIT) reported DPU of 2.462 Singapore cents for Q1 FY21, representing an 18.1 per cent yoy increase. The DPU increment was attributed to contributions from new accretive acquisitions and asset enhancement initiatives in 2020. Note that KDCREIT pays distributions on a semi-annual basis, and no distribution will be paid for Q1 FY2021. 

REIT Watch is a weekly column on The Business Times, read the original version.



REIT Watch - 14 S-Reit DPUs up average 31% year on year

Singapore

Paragon REIT is a real estate investment trust that primarily invests in income-producing retail properties across Singapore and the Asia-Pacific region. Its portfolio includes upscale retail malls, medical suites, and shopping centers such as Paragon, The Clementi Mall, and Westfield Marion Shopping Centre. The company is headquartered in Singapore and was founded in 2013.

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