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

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For the past 12 weeks, the 10 S-REITs recipient to the Sector’s highest net institutional inflows (proportionate to market capitalisation) included seven of the S-REIT Sector’s best performers over the period, including Keppel DC REIT which has been amongst the 25 strongest performing global REITs in the 2020 YTD. 
	 </li>
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These 10 S-REITs averaged a 6% total return from 9 June through to 28 August, whilst the remaining S-REITs averaged a 9% decline. The iEdge S-REIT Leaders Index generated a 3% decline over the 12 weeks, in-line with the global REIT market.  
	 </li>
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Sabana REIT saw the S-REITs’ highest proportionate net institutional inflows since 9 June. As the Manger reiterated on 28 Aug, the proposed ESR REIT merger offers opportunities for re-rating and for reducing the NAV discount in the long term as part of a larger, more liquid and scalable REIT, backed by a developer-sponsor.
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Globally there are more than 800 stocks that make up the REIT Sector, with a combined market capitalisation of US$1.8 trillion (S$2.4 trillion). The FTSE EPRA/NAREIT Global REIT Index represents approximately two-thirds of the S$1.8 trillion combined market capitalisation and has generated a declined a 17% decline in the 2020 year to 28 August. Like most equity benchmarks, the Index formed its post-23 March high on 9 June which coincided with the beginnings of the second wave of COVID-19 across the United States. Similarly, the iEdge S-REIT Leaders Index formed its post-23 March high on 9 June, and has since declined 3%. Over the 12 week period the S-REIT sector was recipient to S$147 million in net institutional outflows. A total of 13 trusts of the S-REIT Sector saw net institutional inflows over the 12 weeks. The 10 trusts with the highest net institutional inflows between 10 June to 28 June, proportionate to current market capitalisation included seven of the best performing REITs over the period. Together the 10 trusts generated an average gain of 6% over the 12 weeks, whilst the remaining REITs averaged a 9% decline. 
Sabana REIT saw the S-REIT Sectors’ highest proportionate net institutional inflows since 9 June. As the Manger reiterated on 28 August (click <a href="https://links.sgx.com/1.0.0/corporate-announcements/OZZOXHVNDL7FV4HU/94f78e53d56f79823f6693002a11cab7be59d2c671523099a4385830a84e4205">here</a>), the proposed ESR REIT merger offers opportunities for re-rating and for reducing the NAV discount in the long term as part of a larger, more liquid and scalable REIT, backed by a developer-sponsor. 
The table below sorts the S-REIT Sector to the highest net institutional inflows between proportionate to current market capitalisation between 10 June and 28 August 2020.

<table class="table table-striped"><tbody>
<tr>
<td>S-REIT Sector: REITS, Stapled Trusts and Business Trusts </td>
			<td>SGX Code</td>
			<td>Market Cap S$M</td>
			<td>Net Institutional Flow 10 June - 28 Aug / Mkt Cap</td>
			<td>Total Return 9 June - 28 August </td>
			<td>Total Return YTD</td>
		</tr>
<tr>
<td>Sabana REIT</td>
			<td>M1GU</td>
			<td>389.6</td>
			<td>1.00%</td>
			<td>-1%</td>
			<td>-17%</td>
		</tr>
<tr>
<td>Frasers L&amp;C Tr</td>
			<td>BUOU</td>
			<td>4607.8</td>
			<td>0.60%</td>
			<td>14%</td>
			<td>13%</td>
		</tr>
<tr>
<td>A-REIT</td>
			<td>A17U</td>
			<td>11983</td>
			<td>0.50%</td>
			<td>3%</td>
			<td>15%</td>
		</tr>
<tr>
<td>Mapletree Log Tr</td>
			<td>M44U</td>
			<td>7850.6</td>
			<td>0.40%</td>
			<td>8%</td>
			<td>22%</td>
		</tr>
<tr>
<td>SPH REIT</td>
			<td>SK6U</td>
			<td>2362.5</td>
			<td>0.40%</td>
			<td>-4%</td>
			<td>-19%</td>
		</tr>
<tr>
<td>Keppel Pac Oak REIT</td>
			<td>CMOU</td>
			<td>920.7</td>
			<td>0.40%</td>
			<td>4%</td>
			<td>-1%</td>
		</tr>
<tr>
<td>ARA LOGOS Log Tr</td>
			<td>K2LU</td>
			<td>691.6</td>
			<td>0.30%</td>
			<td>14%</td>
			<td>-6%</td>
		</tr>
<tr>
<td>Keppel DC REIT</td>
			<td>AJBU</td>
			<td>4719.4</td>
			<td>0.20%</td>
			<td>22%</td>
			<td>42%</td>
		</tr>
<tr>
<td>CapitaCom Trust</td>
			<td>C61U</td>
			<td>6333.5</td>
			<td>0.10%</td>
			<td>-10%</td>
			<td>-14%</td>
		</tr>
<tr>
<td>ParkwayLife REIT</td>
			<td>C2PU</td>
			<td>2268.8</td>
			<td>0.10%</td>
			<td>8%</td>
			<td>16%</td>
		</tr>
<tr>
<td>CDL H Trust</td>
			<td>J85</td>
			<td>1281</td>
			<td>0.10%</td>
			<td>-11%</td>
			<td>-32%</td>
		</tr>
<tr>
<td>Mapletree Ind Tr</td>
			<td>ME8U</td>
			<td>7138.6</td>
			<td>0.00%</td>
			<td>9%</td>
			<td>21%</td>
		</tr>
<tr>
<td>Ascott Trust</td>
			<td>HMN</td>
			<td>2747.3</td>
			<td>0.00%</td>
			<td>-19%</td>
			<td>-30%</td>
		</tr>
<tr>
<td>Far East H Trust</td>
			<td>Q5T</td>
			<td>1057.5</td>
			<td>0.00%</td>
			<td>-1%</td>
			<td>-24%</td>
		</tr>
<tr>
<td>Frasers H Trust</td>
			<td>ACV</td>
			<td>835.7</td>
			<td>0.00%</td>
			<td>-18%</td>
			<td>-38%</td>
		</tr>
<tr>
<td>Dasin Retail Tr**</td>
			<td>CEDU</td>
			<td>616.7</td>
			<td>0.00%</td>
			<td>-2%</td>
			<td>1%</td>
		</tr>
<tr>
<td>BHG Retail REIT</td>
			<td>BMGU</td>
			<td>295.5</td>
			<td>0.00%</td>
			<td>-9%</td>
			<td>-13%</td>
		</tr>
<tr>
<td>Mapletree NAC Tr</td>
			<td>RW0U</td>
			<td>3064.8</td>
			<td>-0.10%</td>
			<td>-4%</td>
			<td>-16%</td>
		</tr>
<tr>
<td>IREIT Global</td>
			<td>UD1U</td>
			<td>446.1</td>
			<td>-0.10%</td>
			<td>-3%</td>
			<td>-8%</td>
		</tr>
<tr>
<td>OUE Com REIT</td>
			<td>TS0U</td>
			<td>2030.5</td>
			<td>-0.20%</td>
			<td>-7%</td>
			<td>-30%</td>
		</tr>
<tr>
<td>EC World REIT</td>
			<td>BWCU</td>
			<td>550.7</td>
			<td>-0.20%</td>
			<td>-3%</td>
			<td>-4%</td>
		</tr>
<tr>
<td>Elite Com REIT GBP</td>
			<td>MXNU</td>
			<td>399</td>
			<td>-0.20%</td>
			<td>-1%</td>
			<td>N/A</td>
		</tr>
<tr>
<td>Mapletree Com Tr</td>
			<td>N2IU</td>
			<td>6395.9</td>
			<td>-0.30%</td>
			<td>-10%</td>
			<td>-18%</td>
		</tr>
<tr>
<td>Frasers Cpt Tr</td>
			<td>J69U</td>
			<td>2769.3</td>
			<td>-0.30%</td>
			<td>-5%</td>
			<td>-11%</td>
		</tr>
<tr>
<td>Soilbuild Biz REIT</td>
			<td>SV3U</td>
			<td>519.9</td>
			<td>-0.40%</td>
			<td>-1%</td>
			<td>-16%</td>
		</tr>
<tr>
<td>Keppel REIT</td>
			<td>K71U</td>
			<td>3568.9</td>
			<td>-0.50%</td>
			<td>-11%</td>
			<td>-12%</td>
		</tr>
<tr>
<td>Cromwell REIT EUR</td>
			<td>CNNU</td>
			<td>1819.5</td>
			<td>-0.50%</td>
			<td>3%</td>
			<td>-6%</td>
		</tr>
<tr>
<td>ESR-REIT</td>
			<td>J91U</td>
			<td>1361.5</td>
			<td>-0.50%</td>
			<td>-8%</td>
			<td>-24%</td>
		</tr>
<tr>
<td>Lendlease REIT</td>
			<td>JYEU</td>
			<td>749.9</td>
			<td>-0.50%</td>
			<td>-8%</td>
			<td>-28%</td>
		</tr>
<tr>
<td>Prime US REIT USD</td>
			<td>OXMU</td>
			<td>1119.3</td>
			<td>-0.60%</td>
			<td>-5%</td>
			<td>-12%</td>
		</tr>
<tr>
<td>Sasseur REIT</td>
			<td>CRPU</td>
			<td>919.1</td>
			<td>-0.60%</td>
			<td>-1%</td>
			<td>-8%</td>
		</tr>
<tr>
<td>Utd Hampshire REIT USD</td>
			<td>ODBU</td>
			<td>365.3</td>
			<td>-0.70%</td>
			<td>-8%</td>
			<td>N/A</td>
		</tr>
<tr>
<td>Lippo Malls Tr</td>
			<td>D5IU</td>
			<td>345.4</td>
			<td>-0.70%</td>
			<td>-22%</td>
			<td>-45%</td>
		</tr>
<tr>
<td>ARA H Trust USD</td>
			<td>XZL</td>
			<td>273.7</td>
			<td>-0.70%</td>
			<td>-24%</td>
			<td>-57%</td>
		</tr>
<tr>
<td>CapitaMall Trust</td>
			<td>C38U</td>
			<td>7011.3</td>
			<td>-0.80%</td>
			<td>-14%</td>
			<td>-21%</td>
		</tr>
<tr>
<td>First REIT</td>
			<td>AW9U</td>
			<td>430.4</td>
			<td>-0.80%</td>
			<td>-23%</td>
			<td>-43%</td>
		</tr>
<tr>
<td>Ascendas-iTrust**</td>
			<td>CY6U</td>
			<td>1514.7</td>
			<td>-0.90%</td>
			<td>-10%</td>
			<td>-12%</td>
		</tr>
<tr>
<td>Manulife REIT USD</td>
			<td>BTOU</td>
			<td>1588.6</td>
			<td>-1.00%</td>
			<td>-9%</td>
			<td>-21%</td>
		</tr>
<tr>
<td>Suntec REIT</td>
			<td>T82U</td>
			<td>3920.9</td>
			<td>-1.30%</td>
			<td>-11%</td>
			<td>-22%</td>
		</tr>
<tr>
<td>Starhill Global REIT</td>
			<td>P40U</td>
			<td>954.8</td>
			<td>-1.30%</td>
			<td>-24%</td>
			<td>-38%</td>
		</tr>
<tr>
<td>AIMS APAC REIT</td>
			<td>O5RU</td>
			<td>833.9</td>
			<td>-1.70%</td>
			<td>-4%</td>
			<td>-13%</td>
		</tr>
<tr>
<td>CapitaR China Tr</td>
			<td>AU8U</td>
			<td>1406.3</td>
			<td>-3.00%</td>
			<td>-14%</td>
			<td>-25%</td>
		</tr>
<tr>
<td>Average</td>
			<td> </td>
			<td> </td>
			<td> </td>
			<td>-5%</td>
			<td>-14%</td>
		</tr>
</tbody></table>
 ** note Business Trust. Source: SGX, Bloomberg, Refinitiv (Data as of 28 August 2020). Note table sort by highest net institutional buys to highest net institutional sells proportionate to current market capitalisation.

 

By comparison, the 10 trusts of the S-REIT sector that saw the highest net institutional inflow proportionate to market capitalisation following the major market lows of 23 March through to the post-low high of 9 June included First REIT, Ascendas REIT, Frasers Logistics &amp; Commercial Trust, Mapletree Logistics Trust, Soilbuild Business Space REIT, Keppel REIT, EC World REIT, Keppel Pacific Oak REIT, Ascott Trust and SPH REIT. During that period, the 10 trusts averaged a 54% Total Return compared to the remaining trusts of the S-REIT Sector gaining 45%.
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For the past 12 weeks, the 10 S-REITs recipient to the Sector’s highest net institutional inflows (proportionate to market capitalisation) included seven of the S-REIT Sector’s best performers over the period, including Keppel DC REIT which has been amongst the 25 strongest performing global REITs in the 2020 YTD.  
	 
	
These 10 S-REITs averaged a 6% total return from 9 June through to 28 August, whilst the remaining S-REITs averaged a 9% decline. The iEdge S-REIT Leaders Index generated a 3% decline over the 12 weeks, in-line with the global REIT market.   
	 
	
Sabana REIT saw the S-REITs’ highest proportionate net institutional inflows since 9 June. As the Manger reiterated on 28 Aug, the proposed ESR REIT merger offers opportunities for re-rating and for reducing the NAV discount in the long term as part of a larger, more liquid and scalable REIT, backed by a developer-sponsor.


 

Globally there are more than 800 stocks that make up the REIT Sector, with a combined market capitalisation of US$1.8 trillion (S$2.4 trillion). The FTSE EPRA/NAREIT Global REIT Index represents approximately two-thirds of the S$1.8 trillion combined market capitalisation and has generated a declined a 17% decline in the 2020 year to 28 August. Like most equity benchmarks, the Index formed its post-23 March high on 9 June which coincided with the beginnings of the second wave of COVID-19 across the United States.  Similarly, the iEdge S-REIT Leaders Index formed its post-23 March high on 9 June, and has since declined 3%. Over the 12 week period the S-REIT sector was recipient to S$147 million in net institutional outflows. A total of 13 trusts of the S-REIT Sector saw net institutional inflows over the 12 weeks. The 10 trusts with the highest net institutional inflows between 10 June to 28 June, proportionate to current market capitalisation included seven of the best performing REITs over the period. Together the 10 trusts generated an average gain of 6% over the 12 weeks, whilst the remaining REITs averaged a 9% decline.  
Sabana REIT saw the S-REIT Sectors’ highest proportionate net institutional inflows since 9 June. As the Manger reiterated on 28 August (click here), the proposed ESR REIT merger offers opportunities for re-rating and for reducing the NAV discount in the long term as part of a larger, more liquid and scalable REIT, backed by a developer-sponsor.  
The table below sorts the S-REIT Sector to the highest net institutional inflows between proportionate to current market capitalisation between 10 June and 28 August 2020.



S-REIT Sector: REITS, Stapled Trusts and Business Trusts 
			SGX Code
			Market Cap S$M
			Net Institutional Flow 10 June - 28 Aug / Mkt Cap
			Total Return 9 June - 28 August 
			Total Return YTD
		

Sabana REIT
			M1GU
			389.6
			1.00%
			-1%
			-17%
		

Frasers L&amp;C Tr
			BUOU
			4607.8
			0.60%
			14%
			13%
		

A-REIT
			A17U
			11983
			0.50%
			3%
			15%
		

Mapletree Log Tr
			M44U
			7850.6
			0.40%
			8%
			22%
		

SPH REIT
			SK6U
			2362.5
			0.40%
			-4%
			-19%
		

Keppel Pac Oak REIT
			CMOU
			920.7
			0.40%
			4%
			-1%
		

ARA LOGOS Log Tr
			K2LU
			691.6
			0.30%
			14%
			-6%
		

Keppel DC REIT
			AJBU
			4719.4
			0.20%
			22%
			42%
		

CapitaCom Trust
			C61U
			6333.5
			0.10%
			-10%
			-14%
		

ParkwayLife REIT
			C2PU
			2268.8
			0.10%
			8%
			16%
		

CDL H Trust
			J85
			1281
			0.10%
			-11%
			-32%
		

Mapletree Ind Tr
			ME8U
			7138.6
			0.00%
			9%
			21%
		

Ascott Trust
			HMN
			2747.3
			0.00%
			-19%
			-30%
		

Far East H Trust
			Q5T
			1057.5
			0.00%
			-1%
			-24%
		

Frasers H Trust
			ACV
			835.7
			0.00%
			-18%
			-38%
		

Dasin Retail Tr**
			CEDU
			616.7
			0.00%
			-2%
			1%
		

BHG Retail REIT
			BMGU
			295.5
			0.00%
			-9%
			-13%
		

Mapletree NAC Tr
			RW0U
			3064.8
			-0.10%
			-4%
			-16%
		

IREIT Global
			UD1U
			446.1
			-0.10%
			-3%
			-8%
		

OUE Com REIT
			TS0U
			2030.5
			-0.20%
			-7%
			-30%
		

EC World REIT
			BWCU
			550.7
			-0.20%
			-3%
			-4%
		

Elite Com REIT GBP
			MXNU
			399
			-0.20%
			-1%
			N/A
		

Mapletree Com Tr
			N2IU
			6395.9
			-0.30%
			-10%
			-18%
		

Frasers Cpt Tr
			J69U
			2769.3
			-0.30%
			-5%
			-11%
		

Soilbuild Biz REIT
			SV3U
			519.9
			-0.40%
			-1%
			-16%
		

Keppel REIT
			K71U
			3568.9
			-0.50%
			-11%
			-12%
		

Cromwell REIT EUR
			CNNU
			1819.5
			-0.50%
			3%
			-6%
		

ESR-REIT
			J91U
			1361.5
			-0.50%
			-8%
			-24%
		

Lendlease REIT
			JYEU
			749.9
			-0.50%
			-8%
			-28%
		

Prime US REIT USD
			OXMU
			1119.3
			-0.60%
			-5%
			-12%
		

Sasseur REIT
			CRPU
			919.1
			-0.60%
			-1%
			-8%
		

Utd Hampshire REIT USD
			ODBU
			365.3
			-0.70%
			-8%
			N/A
		

Lippo Malls Tr
			D5IU
			345.4
			-0.70%
			-22%
			-45%
		

ARA H Trust USD
			XZL
			273.7
			-0.70%
			-24%
			-57%
		

CapitaMall Trust
			C38U
			7011.3
			-0.80%
			-14%
			-21%
		

First REIT
			AW9U
			430.4
			-0.80%
			-23%
			-43%
		

Ascendas-iTrust**
			CY6U
			1514.7
			-0.90%
			-10%
			-12%
		

Manulife REIT USD
			BTOU
			1588.6
			-1.00%
			-9%
			-21%
		

Suntec REIT
			T82U
			3920.9
			-1.30%
			-11%
			-22%
		

Starhill Global REIT
			P40U
			954.8
			-1.30%
			-24%
			-38%
		

AIMS APAC REIT
			O5RU
			833.9
			-1.70%
			-4%
			-13%
		

CapitaR China Tr
			AU8U
			1406.3
			-3.00%
			-14%
			-25%
		

Average
			 
			 
			 
			-5%
			-14%
		

 ** note Business Trust. Source: SGX, Bloomberg, Refinitiv (Data as of 28 August 2020). Note table sort by highest net institutional buys to highest net institutional sells proportionate to current market capitalisation.

 

By comparison, the 10 trusts of the S-REIT sector that saw the highest net institutional inflow proportionate to market capitalisation following the major market lows of 23 March through to the post-low high of 9 June included First REIT, Ascendas REIT, Frasers Logistics &amp; Commercial Trust, Mapletree Logistics Trust, Soilbuild Business Space REIT, Keppel REIT, EC World REIT, Keppel Pacific Oak REIT, Ascott Trust and SPH REIT. During that period, the 10 trusts averaged a 54% Total Return compared to the remaining trusts of the S-REIT Sector gaining 45%.



Capitaland Integrated Commercial Trust (CICT SP)

Kwang Hee Development Oriented Self Adm (140910 KS)

Frasers Logistics & Commercial Trust (FLT SP)

S-REITs Most Sought by Institutions Since 9 June