Alpha-Centric ESG Research

Kyle Rudden

Thematic (Sector/Industry)

<ul><li>New SGX climate-related disclosure requirements based on ISSB's standards are more stringent than current requirements, most notably regarding mandatory Scope 3 emissions reporting.</li><li>The implications for S-REITs are significant. Real Estate is one of the most emissions-intensive sectors, and Scope 3 emissions comprise 85-95% of total emissions for real estate companies.</li><li>Motivated by a strong "business case" for best-in-class climate performance and transparency, many S-REITs are ahead of the curve, evidenced by prominence in climate-related indexes.</li></ul>

New SGX climate-related disclosure requirements based on ISSB's standards are more stringent than current requirements, most notably regarding mandatory Scope 3 emissions reporting.The implications for S-REITs are significant. Real Estate is one of the most emissions-intensive sectors, and Scope 3 emissions comprise 85-95% of total emissions for real estate companies.Motivated by a strong "business case" for best-in-class climate performance and transparency, many S-REITs are ahead of the curve, evidenced by prominence in climate-related indexes.

S-REITs: Climate Disclosures and Inclusion in ESG-Related Equity Indexes

Product Marketing Manager, Criat

Raghav Chandra Mathur

Product Marketing Manager

Next-Generation Credit Analytics Provider

Criat

Criat specializes in new-generation data-driven credit analytics. Leveraging our industry-leading DeepCredit analytical technologies, we produce daily-updated forward-looking credit assessment and valuation to help financial institutions stay ahead of risks. Coupled with use-case-driven applications, we extract insights, answer questions and enable smarter credit decisions.

<ul>
<li>In Asia's major markets, REITs are grappling with escalating macroeconomic and contagion risks, amplifying their financing and performance challenges.</li>
<li>The S&amp;P High Yield Asia Pacific-Ex New Zealand REITs Select total return index, tracking the top 30 dividend- yielding REITs, has plunged 10% YoY.</li>
<li>Asia-based REITs have felt the heat from rising interest rates and inflation since last year. More recently, developments in China’s ongoing property crisis are likely to be the dominant catalyst that impacts investor sentiment in the region.</li>
</ul>


In Asia's major markets, REITs are grappling with escalating macroeconomic and contagion risks, amplifying their financing and performance challenges.
The S&amp;P High Yield Asia Pacific-Ex New Zealand REITs Select total return index, tracking the top 30 dividend- yielding REITs, has plunged 10% YoY.
Asia-based REITs have felt the heat from rising interest rates and inflation since last year. More recently, developments in China’s ongoing property crisis are likely to be the dominant catalyst that impacts investor sentiment in the region.


Asia REITs Momentum Slows on Souring Investor Sentiments

<ul>
<li>The Monetary Authority of Singapore (MAS) recently launched a public consultation regarding a Code of Conduct for ESG ratings providers and ESG data product providers in Singapore.</li>
<li>It is the right approach for Singapore – a voluntary best-practices framework furthering one of the world's most credible "green" economies, not a regulatory force-fix of something broken.</li>
<li>No surprise ratings methodology changes. No en masse upgrades/downgrades. No acute shocks to the system. Just slow and steady progress for ESG investing and finance in Singapore.</li>
</ul>


The Monetary Authority of Singapore (MAS) recently launched a public consultation regarding a Code of Conduct for ESG ratings providers and ESG data product providers in Singapore.
It is the right approach for Singapore – a voluntary best-practices framework furthering one of the world's most credible "green" economies, not a regulatory force-fix of something broken.
No surprise ratings methodology changes. No en masse upgrades/downgrades. No acute shocks to the system. Just slow and steady progress for ESG investing and finance in Singapore.


Singapore Code of Conduct for ESG Ratings Is Less Risk and More Reward

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

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

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

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

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

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

Equity Bottom-Up

<ul><li>S-REITs with office exposure, including Suntec, Keppel, and OUE REITs, reported strong growth in distributable income for H1 2026.</li><li>Keppel REIT's net property income rose 13.1% YoY, with a 25.2% increase in distributable income from operations.</li><li>Suntec REIT's distributable income increased 25.5% YoY, driven by strong operational performance and lower financing costs.</li></ul>

S-REITs with office exposure, including Suntec, Keppel, and OUE REITs, reported strong growth in distributable income for H1 2026.Keppel REIT's net property income rose 13.1% YoY, with a 25.2% increase in distributable income from operations.Suntec REIT's distributable income increased 25.5% YoY, driven by strong operational performance and lower financing costs.

REIT Watch: Singapore Office REITs deliver robust H1 performance on strong occupancy and higher rents

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)

<ul><li><a href="https://www.smartkarma.com/entities/keppel-reit" target="_blank" data-smartkarma-citation="entities:192" rel="noopener">Keppel REIT (KREIT SP)</a> 1H22 DPU +1.0% YoY; Attractively trading at 17% below book with solid operating metrics</li><li><a href="https://www.smartkarma.com/entities/suntec-reit" target="_blank" data-smartkarma-citation="entities:151" rel="noopener">Suntec REIT (SUN SP)</a> 1H22 DPU +15.8% YoY; Solid performance boosted by retail recovery and office resiliency</li><li><a href="https://www.smartkarma.com/entities/frasers-centrepoint-trust" target="_blank" data-smartkarma-citation="entities:2870" rel="noopener">Frasers Centrepoint Trust (FCT SP)</a> 3Q22 Business Updates – Slight weakness in occupancy despite improvements in tenants’ sales and shopper traffic</li></ul>

Keppel REIT (KREIT SP) 1H22 DPU +1.0% YoY; Attractively trading at 17% below book with solid operating metricsSuntec REIT (SUN SP) 1H22 DPU +15.8% YoY; Solid performance boosted by retail recovery and office resiliencyFrasers Centrepoint Trust (FCT SP) 3Q22 Business Updates – Slight weakness in occupancy despite improvements in tenants’ sales and shopper traffic

ASEAN Builder's Scoop (27Jul22) - KREIT Solid Operating Metrics

Singapore

Suntec Real Estate Investment Trust invests in income-producing real estate primarily used for office and retail purposes. Its portfolio includes prime commercial properties in Singapore, Australia, and the United Kingdom. The company is headquartered in Singapore and was founded in 2004.

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Suntec (SUN SP)

Asia REITs Momentum Slows on Souring Investor Sentiments

In Asia's major markets, REITs are grappling with escalating macroeconomic and contagion risks, amplifying their financing and performance...

Criat

Singapore Code of Conduct for ESG Ratings Is Less Risk and More Reward

Singapore's Code of Conduct for ESG ratings is more light-handed than other regulation-based approaches, but therein lies the "less risk and more...

Kyle Rudden

REIT Watch: Singapore Office REITs deliver robust H1 performance on strong occupancy and higher rents

S-REITs with office exposure, including Suntec, Keppel, and OUE REITs, reported strong growth in distributable income for H1 2026. Keppel REIT's...

Singapore Exchange Ltd (SGX)

ASEAN Builder's Scoop (27Jul22) - KREIT Solid Operating Metrics

SUN boosted by retail recovery and office resiliency; FCT slight weakness in occupancy; EREIT dragged by higher utilities cost; CQ undergoing S$62m...

SCCM Asia Research

Price Gauge

52-week Range

Market Cap (USDm)

P/E

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S-REITs: Climate Disclosures and Inclusion in ESG-Related Equity Indexes

​New SGX climate-related disclosure requirements based on ISSB's standards are more stringent than current requirements, most notably regarding...

Kyle Rudden

Asia REITs Momentum Slows on Souring Investor Sentiments

In Asia's major markets, REITs are grappling with escalating macroeconomic and contagion risks, amplifying their financing and performance...

Criat

Singapore Code of Conduct for ESG Ratings Is Less Risk and More Reward

Singapore's Code of Conduct for ESG ratings is more light-handed than other regulation-based approaches, but therein lies the "less risk and more...

Kyle Rudden

REIT Watch: Singapore Office REITs deliver robust H1 performance on strong occupancy and higher rents

S-REITs with office exposure, including Suntec, Keppel, and OUE REITs, reported strong growth in distributable income for H1 2026. Keppel REIT's...

Singapore Exchange Ltd (SGX)

ASEAN Builder's Scoop (27Jul22) - KREIT Solid Operating Metrics

SUN boosted by retail recovery and office resiliency; FCT slight weakness in occupancy; EREIT dragged by higher utilities cost; CQ undergoing S$62m...

SCCM Asia Research

New SGX climate-related disclosure requirements based on ISSB's standards are more stringent than current requirements, most notably regarding...