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.

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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

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This year marks the 20th anniversary of the Singapore S-Reits and property trust sector with the first Reit - CapitaLand Mall Trust - listed in July 2002, followed by Ascendas Reit in November 2022.

Since then, the sector has evolved into the largest Reit market in Asia ex-Japan, with a mature ecosystem. As of end June 2022, Singapore lists 43 S-Reits with total market value exceeding S$110 billion and average dividend yield of 6.4 per cent. The sector’s market value has grown at a compounded annual growth rate of 13 per cent over the last 10 years.

Singapore Reits have also expanded and diversified beyond Singapore shores. Starting out with mainly local assets and a domestic investor base 20 years ago, the sector has evolved into a global Reit hub today with active international investor participation and foreign asset listings. To date, more than 80 per cent of the 43 S-Reits and property trusts hold overseas assets.

The sector has also welcomed many inaugural Reit listings with assets across various geographies and sub-sectors. Examples include First Reit and Lippo Malls Indonesia Retail Trust, which were the world’s first Indonesia healthcare and retail Reit listings respectively, Sasseur Reit, which was the world’s first China retail outlet mall Reit, as well as Ascendas India Trust, which was the world’s first India business park Reit.

Within Asia, the industry also welcomed the first Reit with pure US-located assets - Manulife US Reit, the first data centre Reit – Keppel DC Reit, as well as the first hospitality stapled trust – CDL Hospitality Trusts. 

As the ecosystem evolves, more listed products such as derivatives and exchange traded funds (ETFs) were launched on the asset class, allowing new segments of investors to participate. There are now 5 Reit ETFs with combined assets under management of more than S$870 million as well as Asia’s first international Reit futures listed on the SGX.

REIT Watch is a weekly column on The Business Times, <a href="https://www.businesstimes.com.sg/companies-markets/s-reits-property-trusts-mark-their-20th-year">read </a>the original version
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    REIT Watch - S-Reits, property trusts mark their 20th year

      
    
    REIT Watch - S-Reits, property trusts mark their 20th year


This year marks the 20th anniversary of the Singapore S-Reits and property trust sector with the first Reit - CapitaLand Mall Trust - listed in July 2002, followed by Ascendas Reit in November 2022.

Since then, the sector has evolved into the largest Reit market in Asia ex-Japan, with a mature ecosystem. As of end June 2022, Singapore lists 43 S-Reits with total market value exceeding S$110 billion and average dividend yield of 6.4 per cent. The sector’s market value has grown at a compounded annual growth rate of 13 per cent over the last 10 years.

Singapore Reits have also expanded and diversified beyond Singapore shores. Starting out with mainly local assets and a domestic investor base 20 years ago, the sector has evolved into a global Reit hub today with active international investor participation and foreign asset listings. To date, more than 80 per cent of the 43 S-Reits and property trusts hold overseas assets.

The sector has also welcomed many inaugural Reit listings with assets across various geographies and sub-sectors. Examples include First Reit and Lippo Malls Indonesia Retail Trust, which were the world’s first Indonesia healthcare and retail Reit listings respectively, Sasseur Reit, which was the world’s first China retail outlet mall Reit, as well as Ascendas India Trust, which was the world’s first India business park Reit.

Within Asia, the industry also welcomed the first Reit with pure US-located assets - Manulife US Reit, the first data centre Reit – Keppel DC Reit, as well as the first hospitality stapled trust – CDL Hospitality Trusts. 

As the ecosystem evolves, more listed products such as derivatives and exchange traded funds (ETFs) were launched on the asset class, allowing new segments of investors to participate. There are now 5 Reit ETFs with combined assets under management of more than S$870 million as well as Asia’s first international Reit futures listed on the SGX.

REIT Watch is a weekly column on The Business Times, read the original version



REIT Watch - S-Reits, property trusts mark their 20th year

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 <div class='content-caption'>REIT Watch 6 Jun</div>
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Major cities in China have started re-opening and easing measures as the number of infections across China dropped.

The city of Shanghai finally re-opened on Jun 1 while some districts of Beijing are allowed to return to work.

Businesses are hopeful that the easing of measures will be a step towards gradual normalisation and have a positive impact on operations.

There are 5 S-Reits and property trusts with pure exposure to China assets.

Sasseur Reit, BHG Retail Reit and Dasin Retail Trust, which is a property trust, are retail Reits while EC World Reit  is an industrial Reit and CapitaLand China Trust is a diversified Reit.

CapitaLand China Trust (CLCT) reported 24 per cent year-on-year growth in gross revenue for Q1 2022, which in turn contributed to the 30.4 per cent growth in net property income (NPI).

CLCT noted that, for its retail portfolio, January to February shopper traffic and sales increased year on year until the recent Covid-19 wave in March.

All business parks remained open during the quarter and operations were not impacted.

However, in line with Shanghai lockdown measures, activities at the Shanghai Fengxian and Kunshan Bacheng Logistics Parks have paused.

The trust expects its logistics portfolio to be largely resilient.

Sasseur Reit reported distributable income of S$24.7 million, a 4.7 per cent increase year on year but 2.4 per cent drop quarter on quarter.

Its Q1 2022 outlet sales of 1,096.2 million yuan was 3.6 per cent lower year on year as a result of weaker buying sentiments and shopper traffic after the latest wave of Covid-19.

However, the Reit noted that there were no known outbreaks of Covid-19 in the cities where its 4 outlets are located.

EC World Reit (ECW) reported a 7.4 per cent year-on-year growth in NPI for Q1 FY2022.

However, distribution to unitholders dipped 9.4 per cent, mainly impacted by withholding tax expense incurred for repatriation of funds and provision for pre-termination compensation to a third-party tenant at Fu Zhuo Industrial as a result of compulsory expropriation.

The Reit noted that even though recent Covid-19 lockdowns in China caused bottlenecks in global supply chains, ECW’s portfolio of properties has not been materially impacted by the recent lockdowns.

BHG Retail Reit has 6 properties across 5 cities in China - Xining, Chengdu, Hefei, Dalian and Beijing.

Notwithstanding the near-term uncertainties and headwinds from Covid-19, the Reit noted that it remains focused to proactively manage and enhance existing assets, as well as to pursue acquisition opportunities.

As at Mar 31, 2022, close to 80 per cent of the Reit’s net lettable area is leased to tenants in experiential trade sectors.

Dasin Retail Trust announced in March 2022 that the trust had entered into a non-binding memorandum of understanding (MOU) to explore the sale of two assets - Shiqi Metro Mall and Xiaolan Metro Mall.

While the new waves of Covid-19 cases and the country’s pandemic prevention and control policies have moderated the pace of recovery of consumer consumption, the trust noted that it will continue to look into ways to realise organic growth, through improving tenant mix, introducing trending brands, or undertaking asset enhancement initiatives (AEIs).

REIT Watch is a weekly column on The Business Times, <a href="https://www.businesstimes.com.sg/companies-markets/s-reits-with-china-assets-focus-on-growth-despite-lockdowns">read </a>the original version
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    REIT Watch 6 Jun


Major cities in China have started re-opening and easing measures as the number of infections across China dropped.

The city of Shanghai finally re-opened on Jun 1 while some districts of Beijing are allowed to return to work.

Businesses are hopeful that the easing of measures will be a step towards gradual normalisation and have a positive impact on operations.

There are 5 S-Reits and property trusts with pure exposure to China assets.

Sasseur Reit, BHG Retail Reit and Dasin Retail Trust, which is a property trust, are retail Reits while EC World Reit  is an industrial Reit and CapitaLand China Trust is a diversified Reit.

CapitaLand China Trust (CLCT) reported 24 per cent year-on-year growth in gross revenue for Q1 2022, which in turn contributed to the 30.4 per cent growth in net property income (NPI).

CLCT noted that, for its retail portfolio, January to February shopper traffic and sales increased year on year until the recent Covid-19 wave in March.

All business parks remained open during the quarter and operations were not impacted.

However, in line with Shanghai lockdown measures, activities at the Shanghai Fengxian and Kunshan Bacheng Logistics Parks have paused.

The trust expects its logistics portfolio to be largely resilient.

Sasseur Reit reported distributable income of S$24.7 million, a 4.7 per cent increase year on year but 2.4 per cent drop quarter on quarter.

Its Q1 2022 outlet sales of 1,096.2 million yuan was 3.6 per cent lower year on year as a result of weaker buying sentiments and shopper traffic after the latest wave of Covid-19.

However, the Reit noted that there were no known outbreaks of Covid-19 in the cities where its 4 outlets are located.

EC World Reit (ECW) reported a 7.4 per cent year-on-year growth in NPI for Q1 FY2022.

However, distribution to unitholders dipped 9.4 per cent, mainly impacted by withholding tax expense incurred for repatriation of funds and provision for pre-termination compensation to a third-party tenant at Fu Zhuo Industrial as a result of compulsory expropriation.

The Reit noted that even though recent Covid-19 lockdowns in China caused bottlenecks in global supply chains, ECW’s portfolio of properties has not been materially impacted by the recent lockdowns.

BHG Retail Reit has 6 properties across 5 cities in China - Xining, Chengdu, Hefei, Dalian and Beijing.

Notwithstanding the near-term uncertainties and headwinds from Covid-19, the Reit noted that it remains focused to proactively manage and enhance existing assets, as well as to pursue acquisition opportunities.

As at Mar 31, 2022, close to 80 per cent of the Reit’s net lettable area is leased to tenants in experiential trade sectors.

Dasin Retail Trust announced in March 2022 that the trust had entered into a non-binding memorandum of understanding (MOU) to explore the sale of two assets - Shiqi Metro Mall and Xiaolan Metro Mall.

While the new waves of Covid-19 cases and the country’s pandemic prevention and control policies have moderated the pace of recovery of consumer consumption, the trust noted that it will continue to look into ways to realise organic growth, through improving tenant mix, introducing trending brands, or undertaking asset enhancement initiatives (AEIs).

REIT Watch is a weekly column on The Business Times, read the original version



REIT Watch - S-Reits with China assets focus on growth despite lockdowns

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/capitaland-investment-ltd-si" target="_blank" data-smartkarma-citation="entities:33774" rel="noopener">CapitaLand Investment (CLI SP)</a> 1Q22 Business Updates – FUM flat QoQ but lodging business picking up the slacks</li><li><a href="https://www.smartkarma.com/entities/sasseur-reit" target="_blank" data-smartkarma-citation="entities:26807" rel="noopener">Sasseur REIT (SASSR SP)</a> 1Q22 DPU +3.6% YoY; Weathering the storm with robust occupancy</li><li><a href="https://www.smartkarma.com/entities/bhg-retail-reit" target="_blank" data-smartkarma-citation="entities:21021" rel="noopener">BHG Retail REIT (BHGREIT SP)</a> 1Q22 Business Updates – Steady and robust occupancy</li></ul>

CapitaLand Investment (CLI SP) 1Q22 Business Updates – FUM flat QoQ but lodging business picking up the slacksSasseur REIT (SASSR SP) 1Q22 DPU +3.6% YoY; Weathering the storm with robust occupancyBHG Retail REIT (BHGREIT SP) 1Q22 Business Updates – Steady and robust occupancy

ASEAN Builder's Scoop (12May22) - CLI Flat FUM but Lodging Picking Up

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Listed on SGX are 4 S-Reits and 1 property trust with pure exposure to China. These trusts have assets across sub-sectors such as retail malls, logistics and industrial, and office and business parks based in China.

All 5 trusts have recorded stronger rental income and declared increases in distributions made to unitholders for full year 2021. Common themes across their full-year earnings were resilient portfolio occupancy rates, recovery in shopper footfalls and tenant sales, and contributions from acquisitions despite recent Covid-19 resurgences. 
CapitaLand China Trust (CLCT), which is diversified across 11 retail assets, five business parks and four logistics properties, reported 37.5 per cent higher FY2021 distribution per unit (DPU) and 85.2 per cent higher annual net property income (NPI) for the year. Increases were due to new contributions from its recently acquired logistics and business park portfolios, Rock Square and CapitaMall Nuohemule. 
CLCT noted better occupancy rate of 96.3 per cent in FY2021, alongside higher tenant sales and shopper traffic of 16.1 per cent and 9.3 per cent respectively despite mall closures and restrictions due to sporadic Covid-19 outbreaks.

Beyond retail malls, CLCT now has a combined 21.9 per cent exposure to new economy assets through its business park and logistics portfolio which registered 7.0 per cent and 2.7 per cent in rental reversion respectively in FY2021. CLCT is also the first S-Reit to secure a loan linked to the sustainability performance of a China portfolio. 
Sasseur REIT and its portfolio of four retail outlet malls posted 8.5 per cent growth in DPU and 10.1 per cent growth in entrusted management agreement (EMA) rental income in FY2021, despite COVID-19 disruptions. 
The Reit saw continued robust consumption trends in the cities where its outlets are located, coupled with intensive promotional efforts with tenants which drove higher sales. Its portfolio occupancy rate rose to 94.5 per cent in Q42021 compared to 93.7 per cent in Q32021. The Reit believes that it will continue to benefit from China's domestic consumption. 
EC World REIT (ECW) is a specialised logistics and e-commerce logistics REIT with eight properties in Hangzhou and Wuhan. The REIT recorded 12.7 per cent growth in NPI and 16.9 per cent increase in DPU, largely due to the absence of one-off rebates provided to tenants in FY2020. Its portfolio has an occupancy rate of 99.2 per cent as of 31 December 2021 and is diversified across three segments: e-commerce logistics (41.8 per cent of portfolio valuation), port logistics (40.5 per cent), and specialised logistics (17.8 per cent). 
On Jan 10, 2022, ECW received a formal notice in relation to the compulsory expropriation of Fu Zhuo Industrial and is entitled to receive compensation based on the expropriation valuation. The Reit does not expect the compulsory expropriation to have a material impact on its portfolio and Fu Zhuo Industrial accounts for under 1.5 per cent of its portfolio valuation and 1.6 per cent of its NPI in FY2021. 
BHG Retail REIT across its six retail malls reported increases of 14.9 per cent in NPI and 11.3 per cent in DPU for FY2021. The REIT noted that its malls continued to see healthy leasing demands with occupancy rate at 97.0 per cent as at 31 December 2021 alongside healthy retention rates. The REIT will remain cautious about risks of COVID-19 resurgence and continues to refresh its malls’ offerings to pursue growth opportunities. 
Dasin Retail Trust has a portfolio of seven retail malls and registered increases of 10.9 per cent in NPI and 32.5 per cent in DPU for FY2021. It maintains an occupancy rate of 93.9 per cent across a diversified tenant base with no single trade sector contributing over 25.0 per cent of its gross rental income. The Trust Manager also looks to source new expansion opportunities with its new strategic partner and major shareholder Sino-Ocean Capital. REIT Watch is a weekly column on The Business Times,<a href="https://www.businesstimes.com.sg/companies-markets/green-shoots-for-retail-and-hospitality-s-reits-amid-new-pandemic-phase"> </a><a href="https://www.businesstimes.com.sg/companies-markets/pure-play-china-s-reits-record-strong-2021-growth-0">read </a>the original version.
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    Five trusts with 100% assets in China


Listed on SGX are 4 S-Reits and 1 property trust with pure exposure to China. These trusts have assets across sub-sectors such as retail malls, logistics and industrial, and office and business parks based in China.

All 5 trusts have recorded stronger rental income and declared increases in distributions made to unitholders for full year 2021. Common themes across their full-year earnings were resilient portfolio occupancy rates, recovery in shopper footfalls and tenant sales, and contributions from acquisitions despite recent Covid-19 resurgences.  
CapitaLand China Trust (CLCT), which is diversified across 11 retail assets, five business parks and four logistics properties, reported 37.5 per cent higher FY2021 distribution per unit (DPU) and 85.2 per cent higher annual net property income (NPI) for the year. Increases were due to new contributions from its recently acquired logistics and business park portfolios, Rock Square and CapitaMall Nuohemule.  
CLCT noted better occupancy rate of 96.3 per cent in FY2021, alongside higher tenant sales and shopper traffic of 16.1 per cent and 9.3 per cent respectively despite mall closures and restrictions due to sporadic Covid-19 outbreaks.

Beyond retail malls, CLCT now has a combined 21.9 per cent exposure to new economy assets through its business park and logistics portfolio which registered 7.0 per cent and 2.7 per cent in rental reversion respectively in FY2021. CLCT is also the first S-Reit to secure a loan linked to the sustainability performance of a China portfolio.  
Sasseur REIT and its portfolio of four retail outlet malls posted 8.5 per cent growth in DPU and 10.1 per cent growth in entrusted management agreement (EMA) rental income in FY2021, despite COVID-19 disruptions.  
The Reit saw continued robust consumption trends in the cities where its outlets are located, coupled with intensive promotional efforts with tenants which drove higher sales. Its portfolio occupancy rate rose to 94.5 per cent in Q42021 compared to 93.7 per cent in Q32021. The Reit believes that it will continue to benefit from China's domestic consumption.  
EC World REIT (ECW) is a specialised logistics and e-commerce logistics REIT with eight properties in Hangzhou and Wuhan. The REIT recorded 12.7 per cent growth in NPI and 16.9 per cent increase in DPU, largely due to the absence of one-off rebates provided to tenants in FY2020. Its portfolio has an occupancy rate of 99.2 per cent as of 31 December 2021 and is diversified across three segments: e-commerce logistics (41.8 per cent of portfolio valuation), port logistics (40.5 per cent), and specialised logistics (17.8 per cent).  
On Jan 10, 2022, ECW received a formal notice in relation to the compulsory expropriation of Fu Zhuo Industrial and is entitled to receive compensation based on the expropriation valuation. The Reit does not expect the compulsory expropriation to have a material impact on its portfolio and Fu Zhuo Industrial accounts for under 1.5 per cent of its portfolio valuation and 1.6 per cent of its NPI in FY2021.  
BHG Retail REIT across its six retail malls reported increases of 14.9 per cent in NPI and 11.3 per cent in DPU for FY2021. The REIT noted that its malls continued to see healthy leasing demands with occupancy rate at 97.0 per cent as at 31 December 2021 alongside healthy retention rates. The REIT will remain cautious about risks of COVID-19 resurgence and continues to refresh its malls’ offerings to pursue growth opportunities.  
Dasin Retail Trust has a portfolio of seven retail malls and registered increases of 10.9 per cent in NPI and 32.5 per cent in DPU for FY2021. It maintains an occupancy rate of 93.9 per cent across a diversified tenant base with no single trade sector contributing over 25.0 per cent of its gross rental income. The Trust Manager also looks to source new expansion opportunities with its new strategic partner and major shareholder Sino-Ocean Capital.  REIT Watch is a weekly column on The Business Times, read the original version.



REIT Watch - Pure-play China S-Reits record strong 2021 growth

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The iEdge S-Reit Index declined 3 per cent in total returns in 2022 year to date (YTD), amid geopolitical escalations, macro uncertainty and increasing expectations of a potential rate hike.

Despite the decline, it remained one of the most defensive Reit indices globally, with the FTSE EPRA Nareit Developed Index declining 7 per cent during the same period.

Interest rates have always been a key driver for the sector, given the impact on yield spreads and borrowing costs. 
S-Reits have been actively managing their interest rate exposures.

On average, close to 75 per cent of S-Reits' current debts are entered directly in fixed rates or hedged through floating-to-fixed interest rate swaps.

S-Reits currently have an average gearing ratio of 37.4 per cent, based on latest company filings, well below the regulatory threshold of 50 per cent. 
This translates into approximately S$24.6 billion (based on Bloomberg data for total assets multiplied by company-reported gearing ratio) of potential debt headroom for the sector, to fund capital-intensive acquisitions. 
The five S-REITs that maintain the lowest gearing ratios are Sasseur REIT, Digital Core REIT, SPH REIT, IREIT Global and Lendlease Global Commercial REIT. Sasseur REIT reported a gearing of 26.1 per cent as of 31 Dec 2021, lowest amongst all S-REITs. 
The Reit noted that this demonstrated strong fundamentals of the portfolio as well as prudent capital management, with an expanded debt headroom to pursue potential acquisition opportunities.

With an average debt maturity of 1.2 years as at Dec 31, 2021, the Reit is actively exploring refinancing opportunities with a view to de-risk the current debt profile by staggering its debt maturity and amount.

Sasseur Reit posted FY2021 distribution per unit (DPU) of 7.104 Singapore cents, up 8.5 per cent year on year. The Reit's 4 outlets in China recorded total sales of almost 4.2 billion yuan in FY2021, representing a growth of 12.3 per cent year on year.

The Reit also observed continued robust consumption trends in the cities where its outlets are located, coupled with intensive promotional efforts in close collaboration with tenants which led to the higher sales.

Listed in 2021, Digital Core Reit is a pure-play data centre Reit with an initial public offering (IPO) portfolio of 10 quality freehold data centres located across the United States and Canada.

The Reit reported a gearing of 27 per cent as at IPO, noting ample debt headroom and potential to fuel outsized growth prospects.

In its FY2021 financial release, SPH Reit reported a gearing of 30.3 per cent with revolving credit facility lines of S$225 million undrawn as at Aug 31, 2021, providing ample debt headroom and additional liquidity if needed.

The Reit noted that its loans were refinanced in FY2021 at a lower interest rate, resulting in lower average cost of debt of 1.84 per cent, compared to 2.66 per cent in FY2020.

As at Nov 30, 2022, the Reit's average cost of debt is at 1.68 per cent and has a weighted average term to maturity of 2.7 years.  REIT Watch is a weekly column on The Business Times,<a href="https://www.businesstimes.com.sg/companies-markets/green-shoots-for-retail-and-hospitality-s-reits-amid-new-pandemic-phase"> </a><a href="https://www.businesstimes.com.sg/companies-markets/s-reits-hedge-against-rising-interest-rates-0">read </a>the original version.
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    5 sreits with lower gearing ratios


The iEdge S-Reit Index declined 3 per cent in total returns in 2022 year to date (YTD), amid geopolitical escalations, macro uncertainty and increasing expectations of a potential rate hike.

Despite the decline, it remained one of the most defensive Reit indices globally, with the FTSE EPRA Nareit Developed Index declining 7 per cent during the same period.

Interest rates have always been a key driver for the sector, given the impact on yield spreads and borrowing costs.  
S-Reits have been actively managing their interest rate exposures.

On average, close to 75 per cent of S-Reits' current debts are entered directly in fixed rates or hedged through floating-to-fixed interest rate swaps.

S-Reits currently have an average gearing ratio of 37.4 per cent, based on latest company filings, well below the regulatory threshold of 50 per cent.  
This translates into approximately S$24.6 billion (based on Bloomberg data for total assets multiplied by company-reported gearing ratio) of potential debt headroom for the sector, to fund capital-intensive acquisitions.  
The five S-REITs that maintain the lowest gearing ratios are Sasseur REIT, Digital Core REIT, SPH REIT, IREIT Global and Lendlease Global Commercial REIT. Sasseur REIT reported a gearing of 26.1 per cent as of 31 Dec 2021, lowest amongst all S-REITs.  
The Reit noted that this demonstrated strong fundamentals of the portfolio as well as prudent capital management, with an expanded debt headroom to pursue potential acquisition opportunities.

With an average debt maturity of 1.2 years as at Dec 31, 2021, the Reit is actively exploring refinancing opportunities with a view to de-risk the current debt profile by staggering its debt maturity and amount.

Sasseur Reit posted FY2021 distribution per unit (DPU) of 7.104 Singapore cents, up 8.5 per cent year on year. The Reit's 4 outlets in China recorded total sales of almost 4.2 billion yuan in FY2021, representing a growth of 12.3 per cent year on year.

The Reit also observed continued robust consumption trends in the cities where its outlets are located, coupled with intensive promotional efforts in close collaboration with tenants which led to the higher sales.

Listed in 2021, Digital Core Reit is a pure-play data centre Reit with an initial public offering (IPO) portfolio of 10 quality freehold data centres located across the United States and Canada.

The Reit reported a gearing of 27 per cent as at IPO, noting ample debt headroom and potential to fuel outsized growth prospects.

In its FY2021 financial release, SPH Reit reported a gearing of 30.3 per cent with revolving credit facility lines of S$225 million undrawn as at Aug 31, 2021, providing ample debt headroom and additional liquidity if needed.

The Reit noted that its loans were refinanced in FY2021 at a lower interest rate, resulting in lower average cost of debt of 1.84 per cent, compared to 2.66 per cent in FY2020.

As at Nov 30, 2022, the Reit's average cost of debt is at 1.68 per cent and has a weighted average term to maturity of 2.7 years.   REIT Watch is a weekly column on The Business Times, read the original version.



REIT Watch - S-Reits hedge against rising interest rates

Singapore

Sasseur Real Estate Investment Trust (“Sasseur REIT”) is the first outlet REIT listed in Asia. Sasseur REIT’s property portfolio comprises four outlets with an estimated appraised value of RMB 8.5 billion and net lettable area of 310,241 square metres. The outlets are strategically located in the high-growth cities of Chongqing, Hefei and Kunming in China and well-positioned to ride on the growth of the rising spending power of the Chinese middle class.

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Sasseur REIT (SASSR SP)

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REIT Watch - S-Reits with China assets focus on growth despite lockdowns

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SCCM Asia Research

REIT Watch - Pure-play China S-Reits record strong 2021 growth

Listed on SGX are 4 S-Reits and 1 property trust with pure exposure to China. These trusts have assets across sub-sectors such...

Singapore Exchange Ltd (SGX)

REIT Watch - S-Reits hedge against rising interest rates

The iEdge S-Reit Index declined 3 per cent in total returns in 2022 year to date (YTD), amid geopolitical escalations, macro...

Singapore Exchange Ltd (SGX)

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