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.

Asia’s leading multi-asset exchange

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

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Equity Bottom-Up

Mapletree Logistics Trust / Equity Bottom-Up

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Mapletree Logistics Trust (“MLT”) is scheduled to join the STI effective the Dec 23 open with an approximate 1.6% weightage, bringing the number of REITs in the STI to five, with a combined Index weighting close to 10%. 
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MLT generated an accumulative total return of 586% since listing on July 28, 2005 (14.4% annualised). As of Sep 30, its 137 logistics assets in Singapore, Hong Kong SAR, Japan, China, Australia, South Korea, Malaysia and Vietnam have an AUM of S$7.95 billion. 
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	<li>Manulife US REIT and Sasseur REIT will also join the FTSE Russell Global EPRA/Nareit Series on Dec 23 – with Manulife US REIT joining the FTSE EPRA/Nareit Global Developed Index and Sasseur REIT joining the FTSE EPRA/Nareit Global Emerging Index.</li>
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Growth from Day One

Mapletree Logistics Trust (“MLT”) listed on SGX on July 28, 2005 with 15 properties and a Singapore-based portfolio value of S$422 million. On the day the MLT IPO was launched, the Business Times cited NUS Professor Ong Seow Eng’s view that Logistics REITs tend to purchase property across countries, and that investors should not be surprised if the trust had more cross-border acquisitions than other REIT types.

The IPO closed 43.9 times over-subscribed with a day one close 30% above the initial offer price. Since listing, MLT has generated average annualised total returns of 14.4%. During that time, MLT has grown its portfolio from 15 properties to 137 logistics assets across eight countries - Singapore, Hong Kong SAR, Japan, China, Australia, South Korea, Malaysia and Vietnam.

MLT maintained assets under management of S$7.95 billion as of Sep 30, and has since completed a private placement of S$250 million to help fund acquisitions in Malaysia and Vietnam in addition to a 50% interest in four properties in China through the acquisition of property holding companies. MLT currently maintains an indicative dividend yield of 5%.

 

First Mapletree to List, Second Mapletree to Join STI

Mapletree Commercial REIT listed on April 27, 2011 however joined the Straits Times Index (“STI”) at the previous quarterly rebalance. This means MLT is the second of the four Mapletree REITs to join the STI and the fifth REIT to join the STI.
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 <img src='https://api2.sgx.com/sites/default/files/2019-12/STI%20REITs.PNG' alt='STI REITs - Annualised Total Returns Since Respective IPOs' />
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 <div class='content-caption'>STI REITs - Annualised Total Returns Since Respective IPOs</div>
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Source: Thomson Reuters, Bloomberg, SGX (accumulative total returns of the five REITs span respective IPOs to Dec 6, 2019).

 

Based on indicative STI weights at the end of September, in addition to the increased issuance of MLT on the aforementioned private placement, MLT is expected to maintain an approximate weight of 1.6% in the STI. The addition to the Index will take effect on the local market open of Dec 23 and MLT will replace Golden Agri-Resources. 

This will bring the approximate weightage of the five REITs within the STI to 10%. This brings added diversity to the STI in 2019 with banks still maintaining the highest STI sector weight. The impact of the low global interest rate outlooks over the past 11 months has seen noticeable divergent performances between the global REITs and global banks.

 

FTSE Russell Global EPRA/Nareit Index Additions

The FTSE EPRA/Nareit Global Real Estate Index Series is designed to represent general trends in eligible real estate equities worldwide. Relevant activities are defined as the ownership, trading and development of income-producing real estate.

The index series now covers Global, Developed and Emerging indices:

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<li>Manulife US REIT will join the FTSE EPRA Nareit Global Developed Index with effect of the local market open of Dec 23 - for more details click <a href="https://links.sgx.com/1.0.0/corporate-announcements/R796NRQQDOASFIGH/dacd0190236f1e51a48ea0f513cbb3b08255cc1b0b8e2ee0ef001fbc64b6ab4e">here</a>. 
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	<li>Sasseur REIT will join the FTSE EPRA Nareit Global Emerging Index with effect of the local market open of Dec 23 - for more details click <a href="https://links.sgx.com/1.0.0/corporate-announcements/IYPTQXTU776XA1KD/4a173d0a9da4035f2e8c0191f4d0f7a0d3ce8b7d1fc7c79c5df0d916940d6284">here</a>.  
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Currently SGX lists 24 stocks that are included within the FTSE EPRA Nareit Global Real Estate Index Series.

The European Public Real Estate Association (“EPRA”) is a common interest group, which aims to promote, develop and represent the European public real estate sector. The National Association of Real Estate Investment Trusts (“Nareit”) is the trade association for REITs and publicly traded real estate companies with an interest in the US property and investment markets.
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Mapletree Logistics Trust (“MLT”) is scheduled to join the STI effective the Dec 23 open with an approximate 1.6% weightage, bringing the number of REITs in the STI to five, with a combined Index weighting close to 10%.  
	 
	
MLT generated an accumulative total return of 586% since listing on July 28, 2005 (14.4% annualised). As of Sep 30, its 137 logistics assets in Singapore, Hong Kong SAR, Japan, China, Australia, South Korea, Malaysia and Vietnam have an AUM of S$7.95 billion. 
	 
	Manulife US REIT and Sasseur REIT will also join the FTSE Russell Global EPRA/Nareit Series on Dec 23 – with Manulife US REIT joining the FTSE EPRA/Nareit Global Developed Index and Sasseur REIT joining the FTSE EPRA/Nareit Global Emerging Index.

 

 

Growth from Day One

Mapletree Logistics Trust (“MLT”) listed on SGX on July 28, 2005 with 15 properties and a Singapore-based portfolio value of S$422 million. On the day the MLT IPO was launched, the Business Times cited NUS Professor Ong Seow Eng’s view that Logistics REITs tend to purchase property across countries, and that investors should not be surprised if the trust had more cross-border acquisitions than other REIT types.

The IPO closed 43.9 times over-subscribed with a day one close 30% above the initial offer price. Since listing, MLT has generated average annualised total returns of 14.4%. During that time, MLT has grown its portfolio from 15 properties to 137 logistics assets across eight countries - Singapore, Hong Kong SAR, Japan, China, Australia, South Korea, Malaysia and Vietnam.

MLT maintained assets under management of S$7.95 billion as of Sep 30, and has since completed a private placement of S$250 million to help fund acquisitions in Malaysia and Vietnam in addition to a 50% interest in four properties in China through the acquisition of property holding companies. MLT currently maintains an indicative dividend yield of 5%.

 

First Mapletree to List, Second Mapletree to Join STI

Mapletree Commercial REIT listed on April 27, 2011 however joined the Straits Times Index (“STI”) at the previous quarterly rebalance. This means MLT is the second of the four Mapletree REITs to join the STI and the fifth REIT to join the STI.



      
    
    STI REITs - Annualised Total Returns Since Respective IPOs


Source: Thomson Reuters, Bloomberg, SGX (accumulative total returns of the five REITs span respective IPOs to Dec 6, 2019).

 

Based on indicative STI weights at the end of September, in addition to the increased issuance of MLT on the aforementioned private placement, MLT is expected to maintain an approximate weight of 1.6% in the STI. The addition to the Index will take effect on the local market open of Dec 23 and MLT will replace Golden Agri-Resources. 

This will bring the approximate weightage of the five REITs within the STI to 10%. This brings added diversity to the STI in 2019 with banks still maintaining the highest STI sector weight. The impact of the low global interest rate outlooks over the past 11 months has seen noticeable divergent performances between the global REITs and global banks.

 

FTSE Russell Global EPRA/Nareit Index Additions

The FTSE EPRA/Nareit Global Real Estate Index Series is designed to represent general trends in eligible real estate equities worldwide. Relevant activities are defined as the ownership, trading and development of income-producing real estate.

The index series now covers Global, Developed and Emerging indices:


Manulife US REIT will join the FTSE EPRA Nareit Global Developed Index with effect of the local market open of Dec 23 - for more details click here. 
	 
	Sasseur REIT will join the FTSE EPRA Nareit Global Emerging Index with effect of the local market open of Dec 23 - for more details click here.  
	 

Currently SGX lists 24 stocks that are included within the FTSE EPRA Nareit Global Real Estate Index Series.

The European Public Real Estate Association (“EPRA”) is a common interest group, which aims to promote, develop and represent the European public real estate sector. The National Association of Real Estate Investment Trusts (“Nareit”) is the trade association for REITs and publicly traded real estate companies with an interest in the US property and investment markets.



Mapletree Logistics Trust Joining the STI on Dec 23