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

CapitaLand Ascendas REIT / Equity Bottom-Up





Singapore’s REITs, stapled and property trusts contributed 24% to day-to-day turnover of Singapore’s stock market in 2019, whilst maintaining a combined market value that was 12% of Singapore’s stock market capitalisation at the end of 2019.  
	 
	
These 43 trusts also generated average total returns of 23% in 2019, and ended 2019 with an average 6% distribution yield. The strongest performers of these trusts were Keppel DC REIT, Ascendas H-Trust, Ascendas I-Trust, Mapletree Com Trust &amp; Sasseur REIT.  
	 
	The STI now includes five REITs which have a combined index weighting close to 10%. Mapletree Com Trust and Mapletree Log Trust respectively joined the STI in successive quarterly rebalances in Sep and Dec 2019. 

In 2019, global Real Estate Investment Trusts (“REITs”) generated their strongest year of gains in 10 years and one of their five strongest years since REITs were established in Singapore in 2002.

At the end of 2019, Singapore listed 35 REITs, six stapled trusts and two property trusts. These trusts contributed 24% to day-to-day turnover of Singapore’s stock market in 2019. In contrast, the 43 trusts maintained a combined market value of S$111.9 billion, which was 12% of Singapore’s stock market capitalisation of S$937.8 billion at the end of 2019.

As many as 25 of the 43 trusts outpaced the 9.4% total return of the Straits Times Index (“STI”) in 2019. The 43 trusts averaged a 23% total return in 2019, with the 39 trusts that were listed for the full duration of the year averaging a 26% total return. By comparison global REITs generated a median total return of 21% in 2019. As discussed here, total returns are accumulative returns and assume dividends are reinvested into units or shares on the ex-dividend date.

The 43 trusts, ranked by highest day-to-day turnover in 2019 are tabled below.



			


						Name
						
						
						Code
						
						
						Mkt Cap (S$M)
						
						
						2019 Volatility
						
						
						2019 Price Change
						
						
						2019 Total Return
						
						
						Country of Largest Revenue as of most recently reported FY
						
						
						Average Daily Turnover (S$M)
						
					


						ASCENDAS REAL ESTATE INV TRT
						
						
						A17U
						
						
						10,730
						
						
						15%
						
						
						18%
						
						
						24%
						
						
						Singapore
						
						
						35.1
						
					


						CAPITALAND MALL TRUST
						
						
						C38U
						
						
						9,074
						
						
						17%
						
						
						9%
						
						
						13%
						
						
						Singapore
						
						
						25.3
						
					


						CAPITALAND COMMERCIAL TRUST
						
						
						C61U
						
						
						7,677
						
						
						16%
						
						
						14%
						
						
						19%
						
						
						Singapore
						
						
						24.5
						
					


						MAPLETREE COMMERCIAL TRUST
						
						
						N2IU
						
						
						7,903
						
						
						20%
						
						
						45%
						
						
						53%
						
						
						Singapore
						
						
						23.3
						
					


						MAPLETREE LOGISTICS TRUST
						
						
						M44U
						
						
						6,607
						
						
						18%
						
						
						38%
						
						
						46%
						
						
						Singapore
						
						
						18.7
						
					


						SUNTEC REIT
						
						
						T82U
						
						
						5,154
						
						
						15%
						
						
						3%
						
						
						9%
						
						
						Singapore
						
						
						16.4
						
					


						MAPLETREE NORTH ASIA COMMERCIAL TRUST
						
						
						RW0U
						
						
						3,705
						
						
						21%
						
						
						2%
						
						
						8%
						
						
						Hong Kong
						
						
						12.3
						
					


						MAPLETREE INDUSTRIAL TRUST
						
						
						ME8U
						
						
						5,722
						
						
						16%
						
						
						36%
						
						
						44%
						
						
						Singapore
						
						
						11.3
						
					


						KEPPEL DC REIT
						
						
						AJBU
						
						
						3,395
						
						
						21%
						
						
						57%
						
						
						66%
						
						
						Singapore
						
						
						8.7
						
					


						FRASERS LOGISTICS &amp; INDUSTRIAL
						
						
						BUOU
						
						
						2,801
						
						
						20%
						
						
						20%
						
						
						28%
						
						
						Australia
						
						
						8.4
						
					


						KEPPEL REIT
						
						
						K71U
						
						
						4,175
						
						
						14%
						
						
						9%
						
						
						14%
						
						
						Singapore
						
						
						8.3
						
					


						FRASERS CENTREPOINT TRUST
						
						
						J69U
						
						
						3,140
						
						
						18%
						
						
						30%
						
						
						36%
						
						
						Singapore
						
						
						5.9
						
					


						ASCOTT RESIDENCE TRUST
						
						 
						
						2,898
						
						
						15%
						
						
						23%
						
						
						31%
						
						
						US
						
						
						5.1
						
					


						FRASERS COMMERCIAL TRUST
						
						
						ND8U
						
						
						1,519
						
						
						18%
						
						
						21%
						
						
						29%
						
						
						Australia
						
						
						3.7
						
					


						CDL HOSPITALITY TRUSTS*
						
						
						J85
						
						
						1,964
						
						
						15%
						
						
						11%
						
						
						17%
						
						
						Singapore
						
						
						3.3
						
					


						ESR-REIT
						
						
						J91U
						
						
						1,848
						
						
						19%
						
						
						4%
						
						
						12%
						
						
						Singapore
						
						
						3.2
						
					


						MANULIFE US REIT
						
						
						BTOU
						
						
						2,110
						
						
						15%
						
						
						29%
						
						
						40%
						
						
						US
						
						
						3.1
						
					


						CAPITALAND RETAIL CHINA TRUST
						
						
						AU8U
						
						
						1,947
						
						
						17%
						
						
						19%
						
						
						28%
						
						
						China
						
						
						3.1
						
					


						EAGLE HOSPITALITY TRUST*
						
						
						LIW
						
						
						639
						
						
						39%
						
						
						-32%
						
						
						-32%
						
						
						US
						
						
						2.7
						
					


						CROMWELL EUROPEAN REIT
						
						
						CNNU
						
						
						2,076
						
						
						19%
						
						
						19%
						
						
						28%
						
						
						Netherlands
						
						
						2.2
						
					


						AIMS APAC REIT
						
						
						O5RU
						
						
						1,004
						
						
						15%
						
						
						8%
						
						
						16%
						
						
						Singapore
						
						
						1.9
						
					


						FIRST REAL ESTATE INVT TRUST
						
						
						AW9U
						
						
						794
						
						
						19%
						
						
						1%
						
						
						10%
						
						
						Indonesia
						
						
						1.9
						
					


						ASCENDAS INDIA TRUST**
						
						
						CY6U
						
						
						1,772
						
						
						22%
						
						
						44%
						
						
						53%
						
						
						India
						
						
						1.7
						
					


						STARHILL GLOBAL REIT
						
						
						P40U
						
						
						1,583
						
						
						14%
						
						
						7%
						
						
						13%
						
						
						Singapore
						
						
						1.7
						
					


						PARKWAYLIFE REIT
						
						
						C2PU
						
						
						2,009
						
						
						14%
						
						
						26%
						
						
						32%
						
						
						Singapore
						
						
						1.5
						
					


						ASCENDAS HOSPITALITY TRUST*
						
						 
						
						1,275
						
						
						17%
						
						
						45%
						
						
						54%
						
						
						Australia
						
						
						1.5
						
					


						LENDLEASE GLOBAL COMMERCIAL
						
						
						JYEU
						
						
						1,086
						
						
						16%
						
						
						6%
						
						
						6%
						
						
						Singapore
						
						
						1.5
						
					


						SPH REIT
						
						
						SK6U
						
						
						2,948
						
						
						13%
						
						
						7%
						
						
						14%
						
						
						Singapore
						
						
						1.5
						
					


						FAR EAST HOSPITALITY TRUST*
						
						
						Q5T
						
						
						1,438
						
						
						17%
						
						
						22%
						
						
						30%
						
						
						Singapore
						
						
						1.4
						
					


						CACHE LOGISTICS TRUST
						
						
						K2LU
						
						
						773
						
						
						17%
						
						
						3%
						
						
						11%
						
						
						Singapore
						
						
						1.3
						
					


						SASSEUR REIT
						
						
						CRPU
						
						
						1,059
						
						
						17%
						
						
						36%
						
						
						52%
						
						
						China
						
						
						1.2
						
					


						KEPPEL PACIFIC OAK US REIT
						
						
						CMOU
						
						
						980
						
						
						17%
						
						
						26%
						
						
						39%
						
						
						US
						
						
						1.1
						
					


						OUE COMMERCIAL REIT
						
						
						TS0U
						
						
						3,043
						
						
						18%
						
						
						23%
						
						
						31%
						
						
						Singapore
						
						
						1.0
						
					


						EC WORLD REIT
						
						
						BWCU
						
						
						597
						
						
						13%
						
						
						8%
						
						
						17%
						
						
						China
						
						
						0.8
						
					


						SOILBUILD BUSINESS SPACE REIT
						
						
						SV3U
						
						
						656
						
						
						16%
						
						
						-10%
						
						
						-3%
						
						
						Singapore
						
						
						0.7
						
					


						FRASERS HOSPITALITY TRUST*
						
						
						ACV
						
						
						1,356
						
						
						11%
						
						
						1%
						
						
						8%
						
						
						Australia
						
						
						0.6
						
					


						LIPPO MALLS INDONESIA RETAIL
						
						
						D5IU
						
						
						651
						
						
						35%
						
						
						24%
						
						
						35%
						
						
						Indonesia
						
						
						0.6
						
					


						BHG RETAIL REIT
						
						
						BMGU
						
						
						348
						
						
						22%
						
						
						-4%
						
						
						2%
						
						
						China
						
						
						0.4
						
					


						PRIME US REIT
						
						
						OXMU
						
						
						1,201
						
						
						14%
						
						
						8%
						
						
						8%
						
						
						US
						
						
						0.4
						
					


						ARA US HOSPITALITY TRUST*
						
						
						XZL
						
						
						664
						
						
						14%
						
						
						-2%
						
						
						-2%
						
						
						US
						
						
						0.4
						
					


						SABANA SHARIAH COMP IND REIT
						
						
						M1GU
						
						
						484
						
						
						19%
						
						
						18%
						
						
						26%
						
						
						Singapore
						
						
						0.4
						
					


						IREIT GLOBAL
						
						
						UD1U
						
						
						516
						
						
						11%
						
						
						12%
						
						
						21%
						
						
						Germany
						
						
						0.3
						
					


						DASIN RETAIL TRUST**
						
						
						CEDU
						
						
						540
						
						
						10%
						
						
						-3%
						
						
						6%
						
						
						China
						
						
						0.2
						
					


						Average
						
						
						 
						
						
						 
						
						
						17%
						
						
						16%
						
						
						23%
						
						
						 
						
						
						 
						
					


		
Source: SGX StockFacts, Thomson Reuters, Bloomberg (Data as of 31 December 2019)

Note: *Stapled Trust ** Business Trust

 Index Inclusions 

The STI now includes five REITs which have a combined index weighting close to 10%. Mapletree Commercial Trust and Mapletree Logistics Trust respectively joined the STI in successive quarterly rebalances in September and December 2019. Four of the five stocks of the STI Reserve List are also REITs - Suntec REIT, Mapletree Industrial Trust, Keppel REIT and Mapletree North Asia Commercial Trust.

SGX also now lists 26 real estate stocks that are included within the FTSE EPRA/Nareit Global Real Estate Index Series which include Hongkong Land and Yanlord Land Group. There are a total of 477 constituents in the FTSE EPRA/Nareit Global Real Estate Index Series. Including Hongkong Land and Yanlord Land Group, the 26 SGX-listed constituents represent 5.5% of the number of constituents in the FTSE EPRA/Nareit Global Real Estate Index Series and approximately 3.0% of the FTSE EPRA/Nareit Global Index weight.

Record Secondary Fundraisings in 2019

These 43 trusts also had a significant impact on secondary fundraisings in 2019 through placements and rights issues. Of the S$5.92 billion in placements in 2019, the trusts contributed 88% or S$5.22 billion. Note that OUE Commercial REIT contributed S$1.42 billion of this, which was related to its merger with OUE Hospitality Trust. The merger was announced on 8 April 2019, and completed on 4 September 2019, creating one of the largest diversified REITs listed in Singapore with seven high quality prime properties located in Singapore and Shanghai. Of the S$2.90 billion in rights issues in 2019, the trusts contributed 84% or S$2.44 billion.

Excluding the OUE Commercial REIT fundraisings of S$1.42 billion, 18 of these trusts contributed a record S$6.24 billion of the combined S$7.40 billion in placements and rights issues of SGX-listed companies 2019. Including OUE Commercial REIT’s placements, 19 trusts raised S$7.66 billion, of a total of S$8.82 billion in secondary fundraisings in 2019. 
 

Integration and Mergers in 2019 and 2020 

Back on 18 May 2018, ESR-REIT and Viva Industrial Trust proposed to merge, with the merger completed on 15 October 2018. A few months later, on 14 January 2019, CapitaLand and Ascendas-Singbridge announced an S$11 billion deal to create Asia’s largest diversified real estate group.  The aforementioned merger of OUE Commercial REIT and OUE Hospitality Trust was proposed on 8 April 2019, and completed on 4 September 2019.

On June 30, the integration of CapitaLand and Ascendas-Singbridge was completed. Soon after, on 3 July 2019, Ascott Residence Trust and Ascendas Hospitality Trust proposed a combined entity which became effective on 2 January 2020.

This means Singapore now lists a total of 34 REITs, six stapled trusts and two property trusts as Ascott Residence Trust and Ascendas Hospitality Trust have merged to form a combined stapled trust entity, with Trading Name Ascott Trust and Stock Code HMN. Rationale for the combination including consolidating the position of the combined portfolio as the largest hospitality trust in Asia Pacific, increasing capacity for development and conversion projects, enhancing financial flexibility, supporting the facilitation of inclusion into FTSE EPRA Nareit Developed Index and providing a DPU accretion.

Similarly, when Frasers Logistics &amp; Industrial Trust (“FLT”) and Frasers Commercial Trust (“FCOT”) proposed a merger by way of Trust Scheme on 2 December 2019, rationale included DPU accretion on a pro forma basis, a broader investment mandate, an improvement in the enlarged REIT’s weightage within the FTSE EPRA/NAREIT Index, enhanced geographical diversification and an increased capital base and debt headroom.

 



Capitaland Integrated Commercial Trust (CICT SP)

Mapletree Pan Asia Commercial Trust (MCT SP)

Significant Milestones for S-REITs in 2019  