SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

Equity Bottom-Up

CDL Hospitality Trusts / Equity Bottom-Up

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<html><body>Singapore continues to lead the Asia ex-Japan region as the largest REIT exchange traded fund (ETF) market following the listing of CSOP iEdge S-REIT Leaders ETF and the UOB APAC Green REIT ETF on the Singapore Exchange last year. 
Together with the two new listings, the 5 Singapore-listed Reit ETFs now have combined assets under management (AUM) of close to S$800 million, which has more than doubled since January 2020. 
The 2 ETFs with 100 per cent focus on S-REITs – Lion-Phillip S-REIT ETF and CSOP iEdge S-REIT Leaders ETF – recorded a combined AUM of S$353 million while the other three ETFs which offer Asia and Asia Pacific exposure – NikkoAM-StraitsTrading Asia Ex Japan REIT ETF, Phillip SGX APAC Dividend Leaders REIT ETF and UOB Asia Pacific (APAC) Green REIT ETF – recorded S$437 million of combined AUM. 
Retail investors, which net bought (note that net buy/sell amount is derived by subtracting total sell amount from total buy amount) over S$1 billion of S-Reits in 2021, have been a key driver of the overall S-Reits sector fund flow activities. 
Since the start of 2022, retail investors continue to net buy S-Reits, accumulating more than S$350 million in net retail inflows in the year to date. 
Similarly, the 5 Reit ETFs have seen 24 consecutive months of net buys by retail investors. 
In January 2022, retail investors net bought S$15 million of Reit ETFs from the secondary market, the largest amount seen over the last 24 months. 
Retail investors are active holders of Reit ETFs and are holding 43 per cent of the combined AUM across the 5 Reit ETFs (as of Jan 2022). 
Aside from direct cash investments, retail investors may also invest in Singapore-listed Reit ETFs via the Supplementary Retirement Scheme (SRS) and the CPF investment scheme (CPFIS). The NikkoAM-StraitsTrading Asia ex Japan Reit ETF was included under CPFIS in November 2021. 
In terms of sector performance, the FTSE ST Reit Index declined close to 2 per cent in the 2022 year to date till Feb 10, amid increasing expectations of a potential rate hike. 
The index yield spread (difference between risk-free rate and FTSE ST Reit Index's dividend yield) stands at 402bps, which is close to the average yield spread over the last 10 years. 
While interest rates gyration may potentially narrow the yield spread, fundamental factors such as macro-economic recovery and reopening may also have a positive impact on dividend yields. 
The 5 best performing Reits in the 2022 year to date include - Suntec Reit (+6.8 per cent), Sabana Industrial Reit (+4.8 per cent), Ascott Residence Trust (+4.6 per cent), Keppel Reit (+4.4 per cent) and CDL Hospitality Trusts (+4.3 per cent). REIT Watch is a weekly column on The Business Times,<a href="https://www.businesstimes.com.sg/companies-markets/retail-interest-picks-up-in-s-reit-etfs"> read </a>the original version.</body></html>


      
    
    Buy sell activities 

Singapore continues to lead the Asia ex-Japan region as the largest REIT exchange traded fund (ETF) market following the listing of CSOP iEdge S-REIT Leaders ETF and the UOB APAC Green REIT ETF on the Singapore Exchange last year.  
Together with the two new listings, the 5 Singapore-listed Reit ETFs now have combined assets under management (AUM) of close to S$800 million, which has more than doubled since January 2020.  
The 2 ETFs with 100 per cent focus on S-REITs – Lion-Phillip S-REIT ETF and CSOP iEdge S-REIT Leaders ETF – recorded a combined AUM of S$353 million while the other three ETFs which offer Asia and Asia Pacific exposure – NikkoAM-StraitsTrading Asia Ex Japan REIT ETF, Phillip SGX APAC Dividend Leaders REIT ETF and UOB Asia Pacific (APAC) Green REIT ETF – recorded S$437 million of combined AUM.  
Retail investors, which net bought (note that net buy/sell amount is derived by subtracting total sell amount from total buy amount) over S$1 billion of S-Reits in 2021, have been a key driver of the overall S-Reits sector fund flow activities.  
Since the start of 2022, retail investors continue to net buy S-Reits, accumulating more than S$350 million in net retail inflows in the year to date.  
Similarly, the 5 Reit ETFs have seen 24 consecutive months of net buys by retail investors.  
In January 2022, retail investors net bought S$15 million of Reit ETFs from the secondary market, the largest amount seen over the last 24 months.  
Retail investors are active holders of Reit ETFs and are holding 43 per cent of the combined AUM across the 5 Reit ETFs (as of Jan 2022).  
Aside from direct cash investments, retail investors may also invest in Singapore-listed Reit ETFs via the Supplementary Retirement Scheme (SRS) and the CPF investment scheme (CPFIS). The NikkoAM-StraitsTrading Asia ex Japan Reit ETF was included under CPFIS in November 2021.  
In terms of sector performance, the FTSE ST Reit Index declined close to 2 per cent in the 2022 year to date till Feb 10, amid increasing expectations of a potential rate hike.  
The index yield spread (difference between risk-free rate and FTSE ST Reit Index's dividend yield) stands at 402bps, which is close to the average yield spread over the last 10 years.  
While interest rates gyration may potentially narrow the yield spread, fundamental factors such as macro-economic recovery and reopening may also have a positive impact on dividend yields.  
The 5 best performing Reits in the 2022 year to date include - Suntec Reit (+6.8 per cent), Sabana Industrial Reit (+4.8 per cent), Ascott Residence Trust (+4.6 per cent), Keppel Reit (+4.4 per cent) and CDL Hospitality Trusts (+4.3 per cent).  REIT Watch is a weekly column on The Business Times, read the original version.


REIT Watch - Retail interest picks up in S-Reit ETFs

Sabana Industrial REIT / Equity Bottom-Up

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SPH REIT kicked off the current financial reporting season for S-REITs on 7 Jan 2022 with the release of its first quarter (ended 30 Nov 2021) business update. This was followed by Sabana Industrial Trust, which reported its second half and full year (ended 31 Dec 2021) financial results on 20 Jan 2022. 
Another 25 S-Reits have also confirmed that they will unveil results or business updates between Jan 24 and Feb 23 for their respective period ended Dec 31, 2021. Among them, 16 S-Reits would be reporting full-year financial results, 4 would be reporting first-half or third-quarter financial results, and another 5 would be providing quarterly business updates.

SPH Reit, in its Q1 FY2022 business update, reiterated its strategy to remain focused on maintaining high occupancy and generating sustainable cash flow while working in partnership with tenants. The Reit's portfolio occupancy rates maintained at 98.8 per cent for the quarter while portfolio weighted average lease expiry (WALE) improved to 5.5 years by net lettable area (NLA) and 2.9 years by gross rental income (GRI) from FY2021's WALE of 5.4 years by NLA and 2.7 years by GRI. 
The Reit remains cautiously optimistic despite the developments surrounding the Omicron variant. It noted resilient tenants' sales in Q1 FY2022 for its Singapore portfolio despite restrictions on dining-in. Occupancy rates for its Singapore portfolio also improved to 99.8 per cent from 98.9 per cent in Q4 FY2021, in line with its strategy of maintaining high occupancy and stabilised cashflow.

Sabana Industrial Reit (Sabana) reported a 14.4 per cent year-on-year increase in gross revenue for H2 FY2021, mainly due to higher occupancy rates from several properties across the portfolio. Net property income (NPI) also rose 10.4 per cent year on year on the higher revenue.

For the full year, the Reit's revenue and NPI increased 14.2 per cent and 16.4 per cent year on year respectively, compared to FY2020. This translated to a full year distribution per unit (DPU) of 3.05 cents, a 10.5 per cent year-on-year increase. 
The Reit manager noted that its focus on attracting tenants in expansionary sectors has led to the continued onboarding of companies from the electronics, healthcare, data centre, and logistics sectors in FY2021. Sabana's overall occupancy rate as at Dec 31, 2021 was 85.4 per cent, up from 76.5 per cent as at Dec 31, 2020 and the highest since 2018. During the year, Sabana announced the removal of its syariah compliance requirement to provide the Reit with access to more diversified funding sources and to enable it to appeal to a wider pool of tenants for its next phase of growth.  REIT Watch is a weekly column on The Business Times, <a href="https://www.businesstimes.com.sg/companies-markets/full-steam-ahead-for-s-reits-earnings-season">read </a>the original version.
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    Schedule of expected S-Reits earnings or business updates


SPH REIT kicked off the current financial reporting season for S-REITs on 7 Jan 2022 with the release of its first quarter (ended 30 Nov 2021) business update. This was followed by Sabana Industrial Trust, which reported its second half and full year (ended 31 Dec 2021) financial results on 20 Jan 2022.  
Another 25 S-Reits have also confirmed that they will unveil results or business updates between Jan 24 and Feb 23 for their respective period ended Dec 31, 2021. Among them, 16 S-Reits would be reporting full-year financial results, 4 would be reporting first-half or third-quarter financial results, and another 5 would be providing quarterly business updates.

SPH Reit, in its Q1 FY2022 business update, reiterated its strategy to remain focused on maintaining high occupancy and generating sustainable cash flow while working in partnership with tenants. The Reit's portfolio occupancy rates maintained at 98.8 per cent for the quarter while portfolio weighted average lease expiry (WALE) improved to 5.5 years by net lettable area (NLA) and 2.9 years by gross rental income (GRI) from FY2021's WALE of 5.4 years by NLA and 2.7 years by GRI.  
The Reit remains cautiously optimistic despite the developments surrounding the Omicron variant. It noted resilient tenants' sales in Q1 FY2022 for its Singapore portfolio despite restrictions on dining-in. Occupancy rates for its Singapore portfolio also improved to 99.8 per cent from 98.9 per cent in Q4 FY2021, in line with its strategy of maintaining high occupancy and stabilised cashflow.

Sabana Industrial Reit (Sabana) reported a 14.4 per cent year-on-year increase in gross revenue for H2 FY2021, mainly due to higher occupancy rates from several properties across the portfolio. Net property income (NPI) also rose 10.4 per cent year on year on the higher revenue.

For the full year, the Reit's revenue and NPI increased 14.2 per cent and 16.4 per cent year on year respectively, compared to FY2020. This translated to a full year distribution per unit (DPU) of 3.05 cents, a 10.5 per cent year-on-year increase.  
The Reit manager noted that its focus on attracting tenants in expansionary sectors has led to the continued onboarding of companies from the electronics, healthcare, data centre, and logistics sectors in FY2021. Sabana's overall occupancy rate as at Dec 31, 2021 was 85.4 per cent, up from 76.5 per cent as at Dec 31, 2020 and the highest since 2018. During the year, Sabana announced the removal of its syariah compliance requirement to provide the Reit with access to more diversified funding sources and to enable it to appeal to a wider pool of tenants for its next phase of growth.   REIT Watch is a weekly column on The Business Times, read the original version.



REIT Watch - Full steam ahead for S-Reits' earnings season

Research from SooChow CSSD Capital Markets (Asia), SCCM Asia Research

SCCM Asia Research

Research from SooChow CSSD Capital Markets (Asia)

Headquartered in Singapore, SooChow CSSD Capital Markets (Asia) is an investment bank focusing on emerging growth companies across Asia, providing a full suite of investment banking services, including corporate finance, mergers and acquisitions advisory, equity capital markets, institutional equities sales and trading and equities research.

SooChow CSSD Capital Markets (Asia)

Thematic (Sector/Industry)

<ul><li><a href="https://www.smartkarma.com/entities/sabana-industrial-real-estate-investment-trust" target="_blank" data-smartkarma-citation="entities:911" rel="noopener">Sabana Industrial REIT (SSREIT SP)</a> 2H21 DPU fell 31.4% YoY; Delivering on turnaround story  </li><li>Oakwood plans to open 20 new properties in 2022; Targets to double portfolio by 2025</li><li><a href="https://www.smartkarma.com/entities/hong-lai-huat-group-ltd" target="_blank" data-smartkarma-citation="entities:9115" rel="noopener">HLH Group (HLHG SP)</a> optimistic on Cambodian market recovery in 2022</li></ul>

Sabana Industrial REIT (SSREIT SP) 2H21 DPU fell 31.4% YoY; Delivering on turnaround story  Oakwood plans to open 20 new properties in 2022; Targets to double portfolio by 2025HLH Group (HLHG SP) optimistic on Cambodian market recovery in 2022

ASEAN Builder's Scoop (20Jan22) - SSREIT Delivering on Turnaround Story

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 <div class='content-caption'>SREIT that have kicked off the reporting season</div>
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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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 <div class='content-caption'>Top 5 S-REITs with largest yoy increase in DPU for 1H2021</div>
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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%

Singapore

Sabana Industrial Real Estate Investment Trust is a real estate investment trust. The Trust focuses on investments in income-producing real estate used for industrial purposes in Asia, as well as real estate-related assets, in line with Sabana investment principles.

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Sabana Industrial REIT (SSREIT SP)

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

As the earnings season conclude, REITs and Property Trusts listed in Singapore have announced financial results or published...

Singapore Exchange Ltd (SGX)

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