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

CapitaLand Ascendas REIT / Equity Bottom-Up

<p>SGX is one of Asia’s regional hub for Real Estate Investment Trusts (REITs) &amp; Property Trusts. Based on the FTSE ST REIT Index, the dividend yield for Singapore REITs have been 4.2 – 6.8% over a period of 5 years (Source: Bloomberg, 2014-2018). Over 80% of Singapore REITs &amp; Property Trusts own offshore assets across Asia Pacific, US &amp; Europe.&nbsp;</p>
<p>As of end Sep 2019, SGX lists 44 REITs &amp; Property Trusts with a combined market capitalisation of over S$100 billion, representing c.12% of Singapore’s overall market</p>
<p>SGX’s REITs &amp; Property Trusts offer wide diversity across property sub-segments<br>REIT Indices:</p>
<ul>
<li>FTSE ST REIT Index: 37 out of the 44 trusts represented</li>
<li>iEdge S-REIT Index: 36 out of the 44 trusts represented</li>
</ul>
<h2>Key Statistics At a Glance</h2>
<ul>
<li>Average dividend yield of 6.2%</li>
<li>Average 3-year annualised total return of 10.8%</li>
<li>Average gearing ratio of 34.5%</li>
<li>10 year market cap CAGR of 22%</li>
</ul>

SGX is one of Asia’s regional hub for Real Estate Investment Trusts (REITs) &amp; Property Trusts. Based on the FTSE ST REIT Index, the dividend yield for Singapore REITs have been 4.2 – 6.8% over a period of 5 years (Source: Bloomberg, 2014-2018). Over 80% of Singapore REITs &amp; Property Trusts own offshore assets across Asia Pacific, US &amp; Europe.&nbsp;
As of end Sep 2019, SGX lists 44 REITs &amp; Property Trusts with a combined market capitalisation of over S$100 billion, representing c.12% of Singapore’s overall market
SGX’s REITs &amp; Property Trusts offer wide diversity across property sub-segments REIT Indices:

FTSE ST REIT Index: 37 out of the 44 trusts represented
iEdge S-REIT Index: 36 out of the 44 trusts represented

Key Statistics At a Glance

Average dividend yield of 6.2%
Average 3-year annualised total return of 10.8%
Average gearing ratio of 34.5%
10 year market cap CAGR of 22%


Chartbook: SREITs & Property Trusts -  October 2019





The new unified CapitaLand Group consisting of CapitaLand and Ascendas-Singbridge have eight stocks listed on SGX with a combined market cap of more than S$50 billion that contribute more than 10% of the day-to-day stock market turnover. 
	 
	
With a 28% average total return, the group of eight stocks have significantly outpaced broader benchmarks in the 2019 YTD, in addition to generating higher average returns than their regional and global peers.  
	 
	
Momentum has come from rotation into REITs across the world on lower interest rates, while slower growth outlooks have had more impact on trade-related sectors. At the same time, the CapitaLand Group has sought to increase its scale and sharpen its focus.  
	 
	
This week CapitaLand also noted it had been listed in the acclaimed Dow Jones Sustainability World Index for the eighth consecutive year, cementing the company's reputation as a leader in sustainability in real estate. 
	 

CapitaLand is Bigger &amp; Bolder

On June 30, CapitaLand and Ascendas-Singbridge completed a transaction to form one of Asia’s largest diversified real estate groups. The enlarged Group maintains a portfolio of more than 1,000 properties with a geographical presence spanning more than 200 cities across more than 30 countries, with a combined AUM of S$129 billion. 
 

This also means the new CapitaLand Group lists eight stocks for trading on SGX with a combined market capitalisation of S$53 billion. Together the eight stocks accounted for close to 12% of the day-to-day turnover of the local stock market with the distribution of the turnover illustrated below.

      
    
    Capitaland Group market cap and turnover
Source: SGX StockFacts (Data as of 17 September 2019)

 

On July 3, the Group proposed a combination of Ascott Residence Trust and Ascendas Hospitality Trust by way of a trust scheme of arrangement, and is subject to unitholder approval with the scheme meeting yet to be convened. Click here for more details.

 

For a global perspective, the world’s largest capitalised real estate stock is American Tower Corp with a market capitalisation of approximately S$135 billion, whilst the tenth largest stock is Welltower Inc with a market capitalisation of S$50 billion.

 

Eight Stocks Outpaced Global Real Estate Stocks with 27% YTD Total Returns

 

Together CapitaLand’s group of eight SGX-listed stocks comprise of one listed company, five REITs, one hospitality trust and one business trust. Together the eight stocks averaged a 3.3% total return in the Sept quarter (through to 18 Sep), bringing their average 2019 year to date total return to 28.2%.

 

As illustrated below, from an average total return perspective the eight stocks have outpaced the average and median returns of both the world’s largest capitalised 100 real estate stocks in addition to Asia Pacific largest capitalised real estate stocks. Each of the eight stocks also outperformed the average and median returns of the 100 largest capitalised real estate stocks across Asia Pacific.

      
    
    Capitaland 2019 YTD Total Returns
The individual performances for the eight stocks listed on SGX are tabled below, with links to recent corporate presentations delivered at investor roadshows. Indicative dividend yields average 5.0% and are based on distributions over the past 12 months.

 




			Stock Name Sort by Highest Turnover
			
			
			Stock

			Code
			
			
			Mkt Cap

			(S$ Bn)
			
			
			QTD Price %
			
			
			YTD Price %
			
			
			YTD Total %
			
			
			Indicative Dividend Yield
			
			
			Recent Corporate Presentations
			
			
			 
			
		


			Ascendas REIT
			
			
			A17U
			
			
			9.7
			
			
			0
			
			
			21
			
			
			24
			
			
			5%
			
			
			Click Here
			
			
			 
			
		


			CapitaLand
			
			
			C31
			
			
			17.7
			
			
			-1
			
			
			13
			
			
			17
			
			
			3%
			
			
			Click Here
			
			
			 
			
		


			CapitaLand Commercial Trust
			
			
			C61U
			
			
			8.2
			
			
			0
			
			
			22
			
			
			28
			
			
			4%
			
			
			Click Here
			
			
			 
			
		


			CapitaLand Mall Trust
			
			
			C38U
			
			
			9.7
			
			
			1
			
			
			16
			
			
			19
			
			
			5%
			
			
			Click Here
			
			
			 
			
		


			Ascott Residence Trust
			
			
			A68U
			
			
			2.9
			
			
			4
			
			
			21
			
			
			29
			
			
			6%
			
			
			Click Here
			
			
			 
			
		


			CapitaLand Retail China Trust
			
			
			AU8U
			
			
			1.8
			
			
			3
			
			
			13
			
			
			22
			
			
			6%
			
			
			Click Here
			
			
			 
			
		


			Ascendas Hospitality Trust*
			
			
			Q1P
			
			
			1.2
			
			
			11
			
			
			42
			
			
			47
			
			
			6%
			
			
			Click Here
			
			
			 
			
		


			Ascendas India Trust**
			
			
			CY6U
			
			
			1.5
			
			
			8
			
			
			36
			
			
			40
			
			
			5%
			
			
			Click Here
			
			
			 
			
		


			Average
			
			 
			 
			
			3
			
			
			23
			
			
			28
			
			 
		

Source: SGX StockFacts &amp; Annual Reports (Data as of 18 September 2019). Note the eight stocks tabled above do not include CapitaLand Malaysia Mall Trust (CMMT),  which listed on the Main Market of Bursa Malaysia Securities Berhad. 
*Stapled Trust 
**Business Trust

 

Vigorous Moves Amidst Changing Growth &amp; Rates Outlook  

Aside from generating comparatively strong investor returns in the 2019 year to date, all eight stocks have provided more active and experienced investors with short term trading opportunities. All eight stocks have averaged at least 1.0% swings between their intraday high and low on a daily basis for the 12 months ending June 2019.  
 

Ascendas India Trust led the short term movers averaging 1.8% swings between daily highs and lows and CapitaLand Mall Trust, CapitaLand Commercial Trust and Ascott Residence Trust all averaged 1.6% daily trading ranges. At the same time intraday 1 minute volatility for the eight stocks was 17%. 
 

Interest rate expectations have changed dramatically in 2019. The US Treasury 10-year yields ended 2018 at 2.68%, and then gradually decreased to a low of 1.43% on September 3. The Federal Reserve’s economic outlook has been explicitly linked to the impact of global trade and manufacturing sentiment on growth in the United States since Jerome Powell’s testimony to US Congress in early July. This has coincided with synchronicity in the local and global performances of interest rate sensitive sectors such as the Banks and the REITs. Last night Chair Jerome Powell mentioned trade policy developments and unsolved geopolitical risk as two key reasons for reducing interest rates by 25 basis points.   
 

As highlighted above, CapitaLand’s group of eight SGX-listed stocks have outpaced both benchmarks and the world’s biggest Real Estate stocks, while the significant moves in US Treasuries have provided adequate short term swings for active traders. 

 

Redeploying &amp; Recycling Quality Assets 

 

The Group has also been identifying and divesting assets which are non-core to the business with properties such as StorHub, CapitaMall Wuhu, the equity interest in Mubadala CapitaLand Real Estate and the equity stake in a Hong Kong listed company with main operations in Henan. 
 

In addition the Group has been recycling quality assets into CapitaLand sponsored REITs and funds and redeploying capital into yield-enhancing assets. Examples of the recycling of quality assets in the 2019 year to date include: 
 


Innov Center and interests in Pufa Tower seeded into CapitaLand Asia Partners I (CAP I), a discretionary real estate fund incepted in April 2019, with an investment mandate for value add and transitional office assets in Asia 
	 
	CapitaMall Xuefu , CapitaMall Aidemengdun in Harbin, CapitaMall Yuhuating in Changsha 5, China recycled into CapitaLand Retail China Trust 
	 
	Majority interest in Main Airport Center, Frankfurt, Germany recycled into CapitaLand Commercial Trust. 
	 

The total divestment value of assets recycled from CapitaLand to its sponsored REITs and funds from January 1 to August 6, 2019 was S$2.14 billion. 
 

CapitaLand 3.0 
 

CapitaLand Group’s transformational transaction was announced on January 14, and received overwhelming approval by CapitaLand’s independent shareholders at an EGM held on 12 April. The key business objectives of the transaction were fourfold: 
 



Augment strengths of existing core markets of Singapore and China - specifically with its enlarged development pipeline, combined with the potential to unlock the value of mature assets for reinvestment through portfolio optimisation. 
	 
	
More scale and capabilities in the logistics/business park sector through developer-owner-operator platforms with established track records. The Group is poised to benefit from growth megatrends, including e-commerce driven consumption, urbanisation and knowledge industries. 
	 
	
Accelerated growth of income by growing the asset management business further to transform into a global real estate asset manager. 
	 

More competitiveness with its enhanced scale and depth would poise the Group in a prime position to offer the most comprehensive solutions to its clients. This would include harnessing technology to create operational efficiencies, build on its enlarged international network of customers, boost employee productivity and realise economies of scale. 
 

As detailed in the table below the newly unified group have been able to deepen its presence in core markets  while building scale and capabilities in its growth markets through the REITs and property trusts. The Group can now also achieve scale in new economy sectors such as business parks and logistics.

 




			Name
			
			
			Stock Code
			
			
			Type of Property 
			Sub-segment
			
			
			Debt/Asset (%)
			
			
			P/B
			
			
			Geographical breakdown by portfolio value 
			(Source: Latest company info)
			
		


			CapitaLand Mall Trust
			
			
			C38U
			
			
			Retail
			
			
			34.2
			
			
			1.3
			
			
			100% Singapore
			
		


			Ascendas REIT
			
			
			A17U
			
			
			Industrial
			
			
			37.2
			
			
			1.5
			
			
			79% SG, AU 14%, 7% UK
			
		


			CapitaLand Commercial Trust
			
			
			C61U
			
			
			Office
			
			
			34.8
			
			
			1.1
			
			
			95% Singapore, 5% Germany
			
		


			Ascott Residence Trust*
			
			
			A68U
			
			
			Hospitality
			
			
			32.8
			
			
			1.0
			
			
			26.5% EU, 15.8% SG, 13.0% JP, 16.7% US, 10% CN, 5.4% VN, 6.4% AU, 3.2% PH, 2.0% ID, 1% MY
			
		


			CapitaLand Retail China Trust
			
			
			AU8U
			
			
			Retail
			
			
			33.8
			
			
			0.9
			
			
			100% China
			
		


			Ascendas India Trust
			
			
			CY6U
			
			
			Diversified
			
			
			33.0
			
			
			1.5
			
			
			100% India
			
		


			Ascendas Hospitality Trust*
			
			
			Q1P
			
			
			Hospitality
			
			
			34.1
			
			
			1.1
			
			
			41% AU, 34% JP, 9% KR, 16% SG
			
		

*Note that on July 3, a combination of Ascott Residence Trust and Ascendas Hospitality Trust by way of a trust scheme of arrangement was proposed and is subject to unitholder approval with the scheme meeting yet to be convened.

Source: SREITs &amp; Property Trusts Chartbook - August 2019

 

Majority of REITs &amp; Trusts Recently Reported DPU Growth 

 




			DPU for 1HFY19 ending 30 June 
			
			
			Stock Code
			
			
			DPU

			1HFY19 

			S cents
			
			
			DPU

			1HFY18

			S cents
			
			
			Notes
			
		


			CapitaLand Mall Trust
			
			
			C38U
			
			
			5.80
			
			
			5.59
			
			
			 
			
		


			CapitaLand Commercial Trust
			
			
			C61U
			
			
			4.40
			
			
			4.28
			
			
			 
			
		


			Ascott Residence Trust
			
			
			A68U
			
			
			3.43
			
			
			3.19
			
			
			If adjusted for one-off items DPUs were 3.17 cents for 1HFY19 and 3.12 cents for 1HFY18

			 
			
		


			CapitaLand Retail China Trust
			
			
			AU8U
			
			
			5.13
			
			
			5.39
			
			
			DPUs before Capital Distributions at 5.03 cents for 1HFY19 and 4.93 cents for 1HFY18  (up 2.0% YoY)
			
		

 




			DPU for 1QFY19/20 ending 30 June 
			
			
			Stock Code
			
			
			DPU

			1QFY19 

			cents
			
			
			DPU

			1QFY18/19
			
			
			Notes
			
		


			Ascendas REIT
			
			
			A17U
			
			
			4.005
			
			
			4.002
			
			
			Included taxable and capital distributions
			
		


			Ascendas India Trust
			
			
			CY6U
			
			
			2.05
			
			
			1.60
			
			
			 
			
		


			Ascendas Hospitality Trust
			
			
			Q1P
			
			
			1.28
			
			
			1.35
			
			
			Retention of distributable income for 1Q FY2019 and 1Q FY2018/19 was 6.7% and 7.0% respectively.
			
		

 

Looking Ahead

 

As highlighted in a recent roadshow, CapitaLand is continuing to focus on fundamentals as growth continues to decelerate across the world. The Group maintains its strengths and focus as follows:


CapitaLand’s diversified portfolio and full value chain of real estate capabilities will continue to be its strength. 
	 
	Added growth potential with the newly integrated Ascendas-Singbridge portfolio comprising of Business Park, Logistics &amp; Industrial as well as India businesses. 
	 
	The Group will focus on refining our strategy and rejuvenating our existing portfolio to stay competitive. 
	 
	Disciplined asset recycling will continue and deleveraging will be a key priority. 
	 
	2H19 project milestones include the opening of the retail mall of Raffles City Chongqing, the launch of the integrated development in Sengkang Central and the start of construction of Phase 2 of International Tech Park Gurgaon in India. 
	 
	A greater emphasis on ESG to ensure sustainable shareholder value. With the next rebalance of the Dow Jones Sustainability World Index to take effect on Monday, CapitaLand noted it had been listed in the acclaimed Index for the eighth consecutive year, cementing the company’s reputation as a leader in sustainability in real estate. 
	 

From CapitaLand’s listing in Nov 2000, through to the June 2019 completion of the transaction with Temasek for Ascendas-Singbridge, the Group have listed a number of businesses which were the first of their kind, including Singapore’s first REIT in July 2002.



CapitaLand Group of Stocks Outpace Global Peers in 2019 YTD





Singapore REITs was the top net buy sector in August, garnering total institutional flows of S$124.6 million. In 8M2019, the sector drew net institutional inflows of S$311.7 million, SGX data showed. 
	 
	
The top institutional net buy REITs in August were: Mapletree Commercial (S$45.8 million inflow), CapitaLand Commercial (S$39.5 million), Ascendas REIT (S$38.5 million) and CapitaLand Mall (S$26.9 million). They accounted for four of the top 10 institutional net buy stocks during the month. 
	 
	The five constituents with the highest dividend indicated yields in the iEdge S-REIT Index are: Lippo Malls (10.4%), First REIT (8.6%), Soilbuild (8.6%), EC World (8.3%), and iREIT Global (7.9%). They averaged an indicated yield of 8.8%, which is more than double the benchmark STI’s indicated yield of about 4%.

SGX lists 35 REITs, seven stapled trusts and three property trusts with a combined market cap of over S$100 billion. Singapore REITs was the top net buy sector in August, garnering total institutional flows of S$124.6 million, SGX data showed. In the first eight months of 2019, the sector drew net institutional inflows of S$311.7 million, with two of the seven months – April and July – registering outflows of S$147.9 million and S$209.2 million respectively.

      
    
    8M 2019 Insti Flow for SREITS 
Source: SGX data

The top institutional net buy REITs in August were: Mapletree Commercial Trust (inflow of S$45.8 million), CapitaLand Commercial Trust (S$39.5 million), Ascendas REIT (S$38.5 million) and CapitaLand Mall Trust (S$26.9 million). They accounted for four of the top 10 institutional net buy stocks during the month.

      
    
    Top Institutional Net Buy REITs in Aug 2019 
Source: SGX data 
 

Mapletree Commercial Trust will join the benchmark Straits Times Index (STI) with effect from 23 September, replacing Hutchison Port Holdings Trust, FTSE Russell said in a statement last Thursday, following the September quarterly review of the STI constituents. 
 

The iEdge S-REIT Index is a free-float, market capitalisation-weighted index that tracks the performance of REITs listed on SGX. The Index’s 36 constituents have a combined market capitalisation of nearly S$100 billion. In the 2019 year-to-date, the iEdge S-REIT Index has clocked total returns of 25.5%, compared with total returns of 21.7% for the FTSE EPRA NAREIT Asia ex-Japan REITs Index, in SGD terms.

      
    
    Comparative YTD Returns 
The five constituents with the highest dividend indicated yields in the iEdge S-REIT Index are: Lippo Malls Indonesia Retail Trust (10.4%), First REIT (8.6%), Soilbuild Business Trust (8.6%), EC World REIT (8.3%), and iREIT Global (7.9%). These five trusts averaged an indicated yield of 8.8%, which is more than double the benchmark STI’s indicated yield of about 4%.

 

The five Index constituents with the lowest indicated yields are: CapitaLand Commercial Trust (4.1%), Mapletree Commercial Trust (4.1%), Keppel DC REIT (4.2%), Parkway Life REIT (4.2%), and CapitaLand Mall Trust (4.4%). These trusts have averaged an indicated yield of 4.2%.

 

Note that RHT Health Trust was not included in this analysis, as it has become a cash trust after completing the disposal of its entire portfolio of healthcare assets to its controlling unitholder, Fortis Healthcare, in January this year. In June, Fortis Healthcare said it had aborted plans to sell its stake in RHT and its trustee manager. RHT’s trustee manager has said it will continue to explore various options, including identifying possible new businesses or the winding up of the trust. According to listing rules, SGX will remove RHT from its official list if the trust is unable to meet requirements for a new listing within 12 months from the time it becomes a cash trust. 

 

In the YTD, the five best-performing constituents of the iEdge S-REIT Index were: Ascendas Hospitality Trust (+45.3%), Mapletree Commercial Trust (+40.8%), Ascendas India Trust (+39.1%), Keppel DC REIT (+38.3%) and Lippo Malls Indonesia Retail Trust (+34.9%). The five have averaged a total return of +39.7% in the YTD, bringing their one-year and three-year total returns to +31.7% and +53.4% respectively.

 

In the YTD, the five least-performing constituents of the iEdge S-REIT Index were: Soilbuild Business Trust (-0.7%), Frasers Hospitality Trust (+4.6%), ESR-REIT (+6.6%), iREIT Global (+10.9%) and EC World REIT (+11.6%). They averaged a +6.6% total return over the period.

 

The tables below detail the constituents of the iEdge S-REIT Index (except for RHT Health Trust), sorted by market cap.




			Name
			
			
			SGX Code
			
			
			Market Cap (S$M)
			
			
			P/B (x)
			
			
			Div Ind Yld (%)
			
		


			ASCENDAS REIT
			
			
			A17U
			
			
			9,992
			
			
			1.2
			
			
			5.3
			
		


			CAPITALAND MALL TRUST
			
			
			C38U
			
			
			9,959
			
			
			1.0
			
			
			4.4
			
		


			CAPITALAND COMMERCIAL TRUST
			
			
			C61U
			
			
			8,443
			
			
			0.9
			
			
			4.1
			
		


			MAPLETREE COMMERCIAL TRUST
			
			
			N2IU
			
			
			6,602
			
			
			1.1
			
			
			4.1
			
		


			MAPLETREE LOGISTICS TRUST
			
			
			M44U
			
			
			5,788
			
			
			1.0
			
			
			5.2
			
		


			SUNTEC REIT
			
			
			T82U
			
			
			5,428
			
			
			0.8
			
			
			5.1
			
		


			MAPLETREE INDUSTRIAL TRUST
			
			
			ME8U
			
			
			4,817
			
			
			1.3
			
			
			5.4
			
		


			KEPPEL REIT
			
			
			K71U
			
			
			4,246
			
			
			0.8
			
			
			4.5
			
		


			MAPLETREE NORTH ASIA COMMERCIAL TRUST
			
			
			RW0U
			
			
			4,240
			
			
			0.9
			
			
			5.9
			
		


			FRASERS CENTREPOINT TRUST
			
			
			J69U
			
			
			3,180
			
			
			1.1
			
			
			5.5
			
		


			ASCOTT RESIDENCE TRUST
			
			
			A68U
			
			
			2,830
			
			
			0.8
			
			
			5.3
			
		


			SPH REIT
			
			
			SK6U
			
			
			2,824
			
			
			1.1
			
			
			5.1
			
		


			FRASERS LOGISTICS &amp; INDUSTRIAL TRUST
			
			
			BUOU
			
			
			2,811
			
			
			1.1
			
			
			6.9
			
		


			KEPPEL DC REIT
			
			
			AJBU
			
			
			2,461
			
			
			1.4
			
			
			4.2
			
		


			CDL HOSPITALITY TRUSTS
			
			
			J85
			
			
			1,963
			
			
			1.0
			
			
			5.2
			
		


			PARKWAY LIFE REIT
			
			
			C2PU
			
			
			1,876
			
			
			1.6
			
			
			4.2
			
		


			CAPITALAND RETAIL CHINA TRUST
			
			
			AU8U
			
			
			1,869
			
			
			0.9
			
			
			6.5
			
		


			MANULIFE US REIT
			
			
			BTOU
			
			
			1,773
			
			
			1.0
			
			
			6.7
			
		


			ESR-REIT
			
			
			J91U
			
			
			1,759
			
			
			0.8
			
			
			7.8
			
		


			STARHILL GLOBAL REIT
			
			
			P40U
			
			
			1,636
			
			
			0.7
			
			
			5.9
			
		


			FRASERS COMMERCIAL TRUST
			
			
			ND8U
			
			
			1,546
			
			
			0.9
			
			
			5.9
			
		


			ASCENDAS INDIA TRUST
			
			
			CY6U
			
			
			1,544
			
			
			1.1
			
			
			5.2
			
		


			OUE COMMERCIAL REIT
			
			
			TS0U
			
			
			1,520
			
			
			0.6
			
			
			6.4
			
		


			FRASERS HOSPITALITY TRUST
			
			
			ACV
			
			
			1,345
			
			
			0.8
			
			
			6.4
			
		


			OUE HOSPITALITY TRUST
			
			
			SK7
			
			
			1,341
			
			
			1.1
			
			
			5.8
			
		


			FAR EAST HOSPITALITY TRUST
			
			
			Q5T
			
			
			1,307
			
			
			0.7
			
			
			5.5
			
		


			ASCENDAS HOSPITALITY TRUST
			
			
			Q1P
			
			
			1,217
			
			
			0.8
			
			
			6.0
			
		


			AIMS APAC REIT
			
			
			O5RU
			
			
			1,008
			
			
			1.0
			
			
			7.1
			
		


			FIRST REIT
			
			
			AW9U
			
			
			835
			
			
			1.3
			
			
			8.6
			
		


			CACHE LOGISTICS TRUST
			
			
			K2LU
			
			
			793
			
			
			1.0
			
			
			7.4
			
		


			LIPPO MALLS INDONESIA RETAIL TRUST
			
			
			D5IU
			
			
			666
			
			
			0.8
			
			
			10.4
			
		


			EC WORLD REIT
			
			
			BWCU
			
			
			577
			
			
			0.8
			
			
			8.3
			
		


			SOILBUILD BUSINESS TRUST
			
			
			SV3U
			
			
			576
			
			
			1.0
			
			
			8.6
			
		


			SABANA SHARIAH COMPLIANT REIT
			
			
			M1GU
			
			
			484
			
			
			0.8
			
			
			6.3
			
		


			IREIT GLOBAL
			
			
			UD1U
			
			
			474
			
			
			1.1
			
			
			7.9
			
		

 




			Name
			
			
			SGX Code
			
			
			Market Cap (S$M)
			
			
			Total Return YTD (%)
			
			
			Total Return 1Y (%)
			
			
			Total Return 3Y (%)
			
		


			ASCENDAS REIT
			
			
			A17U
			
			
			9,992
			
			
			25.5
			
			
			23.6
			
			
			47.0
			
		


			CAPITALAND MALL TRUST
			
			
			C38U
			
			
			9,959
			
			
			21.7
			
			
			32.4
			
			
			42.9
			
		


			CAPITALAND COMMERCIAL TRUST
			
			
			C61U
			
			
			8,443
			
			
			29.9
			
			
			29.9
			
			
			59.3
			
		


			MAPLETREE COMMERCIAL TRUST
			
			
			N2IU
			
			
			6,602
			
			
			40.8
			
			
			45.5
			
			
			63.5
			
		


			MAPLETREE LOGISTICS TRUST
			
			
			M44U
			
			
			5,788
			
			
			29.0
			
			
			31.0
			
			
			73.8
			
		


			SUNTEC REIT
			
			
			T82U
			
			
			5,428
			
			
			13.4
			
			
			9.4
			
			
			29.8
			
		


			MAPLETREE INDUSTRIAL TRUST
			
			
			ME8U
			
			
			4,817
			
			
			28.0
			
			
			23.6
			
			
			59.7
			
		


			KEPPEL REIT
			
			
			K71U
			
			
			4,246
			
			
			13.5
			
			
			11.0
			
			
			27.6
			
		


			MAPLETREE NORTH ASIA COMMERCIAL TRUST
			
			
			RW0U
			
			
			4,240
			
			
			22.9
			
			
			22.8
			
			
			47.0
			
		


			FRASERS CENTREPOINT TRUST
			
			
			J69U
			
			
			3,180
			
			
			32.3
			
			
			28.1
			
			
			51.8
			
		


			ASCOTT RESIDENCE TRUST
			
			
			A68U
			
			
			2,830
			
			
			28.9
			
			
			27.7
			
			
			43.6
			
		


			SPH REIT
			
			
			SK6U
			
			
			2,824
			
			
			14.4
			
			
			16.6
			
			
			30.9
			
		


			FRASERS LOGISTICS &amp; INDUSTRIAL TRUST
			
			
			BUOU
			
			
			2,811
			
			
			25.6
			
			
			22.8
			
			
			54.3
			
		


			KEPPEL DC REIT
			
			
			AJBU
			
			
			2,461
			
			
			38.3
			
			
			37.3
			
			
			75.0
			
		


			CDL HOSPITALITY TRUSTS
			
			
			J85
			
			
			1,963
			
			
			18.1
			
			
			10.5
			
			
			46.1
			
		


			PARKWAY LIFE REIT
			
			
			C2PU
			
			
			1,876
			
			
			20.8
			
			
			17.8
			
			
			41.0
			
		


			CAPITALAND RETAIL CHINA TRUST
			
			
			AU8U
			
			
			1,869
			
			
			24.5
			
			
			17.6
			
			
			16.0
			
		


			MANULIFE US REIT
			
			
			BTOU
			
			
			1,773
			
			
			28.4
			
			
			17.4
			
			
			48.6
			
		


			ESR-REIT
			
			
			J91U
			
			
			1,759
			
			
			6.6
			
			
			12.4
			
			
			20.5
			
		


			STARHILL GLOBAL REIT
			
			
			P40U
			
			
			1,636
			
			
			17.7
			
			
			17.1
			
			
			10.6
			
		


			FRASERS COMMERCIAL TRUST
			
			
			ND8U
			
			
			1,546
			
			
			25.5
			
			
			24.9
			
			
			43.7
			
		


			ASCENDAS INDIA TRUST
			
			
			CY6U
			
			
			1,544
			
			
			39.1
			
			
			38.8
			
			
			63.2
			
		


			OUE COMMERCIAL REIT
			
			
			TS0U
			
			
			1,520
			
			
			20.9
			
			
			-6.4
			
			
			5.4
			
		


			FRASERS HOSPITALITY TRUST
			
			
			ACV
			
			
			1,345
			
			
			4.6
			
			
			6.6
			
			
			15.6
			
		


			OUE HOSPITALITY TRUST
			
			
			SK7
			
			
			1,341
			
			
			14.4
			
			
			4.9
			
			
			30.3
			
		


			FAR EAST HOSPITALITY TRUST
			
			
			Q5T
			
			
			1,307
			
			
			18.2
			
			
			12.8
			
			
			37.5
			
		


			ASCENDAS HOSPITALITY TRUST
			
			
			Q1P
			
			
			1,217
			
			
			45.3
			
			
			44.0
			
			
			86.3
			
		


			AIMS APAC REIT
			
			
			O5RU
			
			
			1,008
			
			
			16.0
			
			
			11.4
			
			
			30.6
			
		


			FIRST REIT
			
			
			AW9U
			
			
			835
			
			
			14.6
			
			
			-10.2
			
			
			-3.1
			
		


			CACHE LOGISTICS TRUST
			
			
			K2LU
			
			
			793
			
			
			12.1
			
			
			8.3
			
			
			5.3
			
		


			LIPPO MALLS INDONESIA RETAIL TRUST
			
			
			D5IU
			
			
			666
			
			
			34.9
			
			
			-7.1
			
			
			-21.0
			
		


			EC WORLD REIT
			
			
			BWCU
			
			
			577
			
			
			11.6
			
			
			15.0
			
			
			17.7
			
		


			SOILBUILD BUSINESS TRUST
			
			
			SV3U
			
			
			576
			
			
			-0.7
			
			
			-5.9
			
			
			1.4
			
		


			SABANA SHARIAH COMPLIANT REIT
			
			
			M1GU
			
			
			484
			
			
			21.1
			
			
			17.5
			
			
			23.0
			
		


			IREIT GLOBAL
			
			
			UD1U
			
			
			474
			
			
			10.9
			
			
			5.8
			
			
			27.5
			
		

*Note: RHT Health Trust excluded from analysis due to its cash trust status

Source: Bloomberg &amp; StockFacts (data as of 6 Sept 2019)



S-REIT Index’s Five Best-Yielding Constituents Average 9% Yield      





While global trade tensions and growth concerns abated in the month of July, the past six weeks has seen a more challenging outlook with potential growth downgrades impacting global equity and bond markets.  
	 
	
The STI generated a decline of 4.0% in total return in the September quarter-to-date, which has trimmed its 2019 year to date total return to 6.1%. While industrial stocks weighed on the STI through August, multiple STI stocks &amp; STI Reserve stocks generated gains.  
	 
	
The 10 largest stocks by market cap that added to their 1H19 gains in the quarter-to-date are all STI or STI Reserve List stocks – they were Wilmar, Thai Bev, CapitaLand, CapitaLand Mall Trust, A-REIT, SGX, City Dev, CapitaLand Com Trust, Mapletree Com Trust &amp; Suntec REIT. 


While global trade tensions and growth concerns abated in the month of July, the past six weeks has seen a more challenging outlook with potential growth downgrades impacting global equity and bond markets.  At Jackson Hole, Federal Reserve President Jerome Powell noted that “trade policy uncertainty seems to be playing a role in the global slowdown and in weak manufacturing and capital spending in the United States”.

 

Impact of Lower Yielding Treasuries

 

While the Federal Reserve cut interest rates by 25 bps on July 31, following nine successive hikes, yields on US treasuries have fallen significantly this year, with US two year yields falling from 2.49% at the end of 2018, to 1.54% on Friday, and US 10 year yields falling from 2.68% at the end of 2018, to 1.56% on Friday.

 

The lower interest rates have had a clear impact on banks and real estate stocks, with the latter outpacing the former.

 


The largest capitalised 100 banks across the world generated a median total return of 6.8% in the 2019 year through to September 6. By comparison, the largest capitalised 100 real estate stocks across the world, more than tripled that performance, generating a median total return of 23.6% over the same period.  

 


Similarly in Singapore, DBS Group Holdings, Oversea-Chinese Banking Corp and United Overseas Bank (“UOB”) averaged a 6.2% total return in the 2019 year through to September 6, while the iEdge SG Real Estate 20 Index generated a 21.0% total return, and the iEdge S-REIT Index generated a 25.5% total return.

 


The measured investor interest can also be exemplified with comparative institutional inflows. In the 2019 year through to September 6, the aforementioned UOB has seen net institutional outflow of S$475 million, whilst UOL Group has seen a net institutional inflow of S$27 million. Last year, coinciding with rising interest rates, UOB saw net institutional inflow of S$260 million, whereas UOL Group saw net institutional outflow of S$99 million.

 


UOL Group has generated a total return of 23.9% in the 2019 year through to September 6, whilst UOB generated a total return of 8.9%. UOB acquired a controlling interest in UOL Group, with a subsequent rename from Faber Union, in 1975.

 

10 Biggest Stocks that have Beat the Benchmark in Sep QTD

 

The ongoing moderation to the global growth outlook, and impact on interest rates has seen the Straits Times Index (“STI”) generate a decline of 4.0% in total return in the September quarter-to-date, which has trimmed its 2019 year to date total return to 6.1%.

 

While trade-orientated industrial stocks weighed the STI through August, multiple STI stocks and STI Reserve stocks generated gains. As many as 11 stocks amidst the 30 stocks that make up the STI and five stocks that make up the STI Reserve List have generated positive total returns in the September quarter through to September 6. The 10 largest capitalised of these stocks are tabled below:




			STI &amp; STI Reserve List Stocks
			
			
			SGX Code
			
			
			Market Cap S$Bn 
			
			
			Total Return QTD
			
			
			Total Return YTD
			
			
			Total Return 2018 %
			
			
			Total Return 2017 %
			
			
			Total Return 2016 %
			
		


			WILMAR INTERNATIONAL
			
			
			F34
			
			
			24.4
			
			
			5.1
			
			
			27.2
			
			
			4.3
			
			
			-12.1
			
			
			25.0
			
		


			THAI BEVERAGE PCL
			
			
			Y92
			
			
			22.4
			
			
			7.2
			
			
			49.2
			
			
			-31.7
			
			
			11.3
			
			
			27.2
			
		


			CAPITALAND
			
			
			C31
			
			
			17.9
			
			
			0.8
			
			
			18.3
			
			
			-9.0
			
			
			20.1
			
			
			-7.2
			
		


			CAPITALAND MALL TRUST
			
			
			C38U
			
			
			9.8
			
			
			2.6
			
			
			21.7
			
			
			12.7
			
			
			19.5
			
			
			3.0
			
		


			ASCENDAS REAL ESTATE INV TRT
			
			
			A17U
			
			
			9.8
			
			
			0.6
			
			
			25.5
			
			
			0.3
			
			
			27.4
			
			
			4.6
			
		


			SINGAPORE EXCHANGE
			
			
			S68
			
			
			9.0
			
			
			6.7
			
			
			20.6
			
			
			0.4
			
			
			7.9
			
			
			-3.4
			
		


			CITY DEVELOPMENTS
			
			
			C09
			
			
			8.8
			
			
			2.7
			
			
			21.6
			
			
			-33.8
			
			
			53.1
			
			
			10.3
			
		


			CAPITALAND COMMERCIAL TRUST
			
			
			C61U
			
			
			8.4
			
			
			2.4
			
			
			29.9
			
			
			-5.0
			
			
			42.1
			
			
			16.6
			
		


			MAPLETREE COMMERCIAL TRUST* **
			
			
			N2IU
			
			
			6.5
			
			
			8.4
			
			
			40.8
			
			
			7.6
			
			
			23.0
			
			
			14.9
			
		


			SUNTEC REIT*
			
			
			T82U
			
			
			5.4
			
			
			0.8
			
			
			13.4
			
			
			-12.8
			
			
			37.6
			
			
			13.2
			
		

Source: SGX StockFacts (Data as of 6 September 2019)

For comparative purposes all the STI stocks and STI Reserve List stocks are tabled below. Mapletree Commercial Trust (MCT) will join the STI effective 23 Sep, with Hutchison Port Holdings Trust scheduled to leave the benchmark. Based on mid-year STI weightages and comparative performances to date, MCT would maintain a weightage in the STI that is close to 1.5%. This would bring the combined weightage of the four REITs in the STI to around 8.0%.



			STI &amp; STI Reserve List Stocks
			
			
			SGX Code
			
			
			Market Cap S$Bn 
			
			
			Total Return QTD
			
			
			Total Return YTD
			
			
			Total Return 2018 %
			
			
			Total Return 2017 %
			
			
			Total Return 2016 %
			
		


			DBS GROUP HOLDINGS
			
			
			D05
			
			
			63.3
			
			
			-3.5
			
			
			9.3
			
			
			1.2
			
			
			47.7
			
			
			8.1
			
		


			JARDINE MATHESON HLDGS
			
			
			J36
			
			
			54.3
			
			
			-13.1
			
			
			-20.3
			
			
			19.8
			
			
			4.0
			
			
			18.8
			
		


			SINGAPORE TELECOMMUNICATIONS
			
			
			Z74
			
			
			52.3
			
			
			-5.6
			
			
			12.8
			
			
			-13.2
			
			
			3.2
			
			
			4.0
			
		


			JARDINE STRATEGIC HLDGS
			
			
			J37
			
			
			48.2
			
			
			-15.4
			
			
			-12.2
			
			
			-4.6
			
			
			11.0
			
			
			25.2
			
		


			OVERSEA-CHINESE BANKING CORP
			
			
			O39
			
			
			46.8
			
			
			-2.6
			
			
			0.5
			
			
			-6.2
			
			
			43.6
			
			
			5.6
			
		


			UNITED OVERSEAS BANK
			
			
			U11
			
			
			42.5
			
			
			-0.3
			
			
			8.9
			
			
			-3.3
			
			
			33.7
			
			
			8.1
			
		


			WILMAR INTERNATIONAL 
			
			
			F34
			
			
			24.4
			
			
			5.1
			
			
			27.2
			
			
			4.3
			
			
			-12.1
			
			
			25.0
			
		


			THAI BEVERAGE PCL
			
			
			Y92
			
			
			22.4
			
			
			7.2
			
			
			49.2
			
			
			-31.7
			
			
			11.3
			
			
			27.2
			
		


			HONGKONG LAND HOLDINGS
			
			
			H78
			
			
			18.5
			
			
			-8.8
			
			
			-5.4
			
			
			-6.1
			
			
			5.5
			
			
			-4.8
			
		


			CAPITALAND 
			
			
			C31
			
			
			17.9
			
			
			0.8
			
			
			18.3
			
			
			-9.0
			
			
			20.1
			
			
			-7.2
			
		


			DAIRY FARM INTL HLDGS
			
			
			D01
			
			
			12.8
			
			
			-1.1
			
			
			-20.9
			
			
			20.4
			
			
			3.5
			
			
			24.6
			
		


			SINGAPORE TECH ENGINEERING
			
			
			S63
			
			
			12.4
			
			
			-2.7
			
			
			18.5
			
			
			11.8
			
			
			5.0
			
			
			12.3
			
		


			JARDINE CYCLE &amp; CARRIAGE
			
			
			C07
			
			
			12.1
			
			
			-15.1
			
			
			-10.5
			
			
			-10.0
			
			
			1.0
			
			
			21.5
			
		


			GENTING SINGAPORE
			
			
			G13
			
			
			10.9
			
			
			-2.2
			
			
			-5.8
			
			
			-23.2
			
			
			48.6
			
			
			21.6
			
		


			KEPPEL CORP
			
			
			BN4
			
			
			10.8
			
			
			-9.4
			
			
			4.3
			
			
			-16.4
			
			
			30.9
			
			
			-6.3
			
		


			SINGAPORE AIRLINES
			
			
			C6L
			
			
			10.7
			
			
			-0.4
			
			
			-2.0
			
			
			-8.2
			
			
			12.5
			
			
			-10.0
			
		


			CAPITALAND MALL TRUST
			
			
			C38U
			
			
			9.8
			
			
			2.6
			
			
			21.7
			
			
			12.7
			
			
			19.5
			
			
			3.0
			
		


			ASCENDAS REAL ESTATE INV TRT
			
			
			A17U
			
			
			9.8
			
			
			0.6
			
			
			25.5
			
			
			0.3
			
			
			27.4
			
			
			4.6
			
		


			SINGAPORE EXCHANGE 
			
			
			S68
			
			
			9.0
			
			
			6.7
			
			
			20.6
			
			
			0.4
			
			
			7.9
			
			
			-3.4
			
		


			CITY DEVELOPMENTS 
			
			
			C09
			
			
			8.8
			
			
			2.7
			
			
			21.6
			
			
			-33.8
			
			
			53.1
			
			
			10.3
			
		


			CAPITALAND COMMERCIAL TRUST
			
			
			C61U
			
			
			8.4
			
			
			2.4
			
			
			29.9
			
			
			-5.0
			
			
			42.1
			
			
			16.6
			
		


			MAPLETREE COMMERCIAL TRUST* **
			
			
			N2IU
			
			
			6.5
			
			
			8.4
			
			
			40.8
			
			
			7.6
			
			
			23.0
			
			
			14.9
			
		


			UOL GROUP
			
			
			U14
			
			
			6.3
			
			
			-0.9
			
			
			23.6
			
			
			-28.8
			
			
			51.2
			
			
			-1.5
			
		


			MAPLETREE LOGISTICS TRUST*
			
			
			M44U
			
			
			5.7
			
			
			-0.6
			
			
			29.0
			
			
			1.5
			
			
			38.7
			
			
			10.8
			
		


			COMFORTDELGRO CORP
			
			
			C52
			
			
			5.5
			
			
			-3.6
			
			
			22.2
			
			
			13.7
			
			
			-16.4
			
			
			-16.3
			
		


			SATS
			
			
			S58
			
			
			5.5
			
			
			-4.0
			
			
			7.5
			
			
			-7.2
			
			
			10.9
			
			
			30.9
			
		


			SUNTEC REIT*
			
			
			T82U
			
			
			5.4
			
			
			0.8
			
			
			13.4
			
			
			-12.8
			
			
			37.6
			
			
			13.2
			
		


			VENTURE CORP
			
			
			V03
			
			
			4.5
			
			
			-3.7
			
			
			15.9
			
			
			-29.1
			
			
			115.4
			
			
			28.0
			
		


			MAPLETREE NORTH ASIA COMMERCIAL TRUST*
			
			
			RW0U
			
			
			4.3
			
			
			-6.9
			
			
			22.9
			
			
			-1.1
			
			
			38.3
			
			
			11.7
			
		


			KEPPEL REIT*
			
			
			K71U
			
			
			4.2
			
			
			0.3
			
			
			13.5
			
			
			-5.2
			
			
			30.1
			
			
			17.0
			
		


			YANGZIJIANG SHIPBUILDING
			
			
			BS6
			
			
			3.8
			
			
			-35.9
			
			
			-18.9
			
			
			-11.4
			
			
			86.3
			
			
			-22.3
			
		


			SEMBCORP INDUSTRIES
			
			
			U96
			
			
			3.8
			
			
			-10.8
			
			
			-14.8
			
			
			-15.0
			
			
			8.8
			
			
			-3.3
			
		


			GOLDEN AGRI-RESOURCES
			
			
			E5H
			
			
			3.4
			
			
			-8.6
			
			
			10.3
			
			
			-33.6
			
			
			-10.8
			
			
			28.0
			
		


			SINGAPORE PRESS HOLDINGS
			
			
			T39
			
			
			3.2
			
			
			-18.9
			
			
			-13.9
			
			
			-6.9
			
			
			-21.0
			
			
			-6.1
			
		


			HUTCHISON PORT HOLDINGS TR-U**
			
			
			NS8U
			
			
			1.9
			
			
			-12.0
			
			
			-14.2
			
			
			-34.7
			
			
			-4.5
			
			
			-7.9
			
		


			MAPLETREE INDUSTRIAL TRUST**
			
			
			ME8U
			
			
			4.7
			
			
			5.9
			
			
			28.0
			
			
			-0.7
			
			
			32.2
			
			
			15.8
			
		

* STI Reserve List **HUTCHISON PORT HOLDINGS TR-U will leave the STI effective September 23, Mapletree Commercial Trust will join the STI, while Mapletree Industrial Trust will join the STI Reserve List. Source: SGX StockFacts (Data as of 6 September 2019)



10 Biggest Stocks that Beat the Benchmark with Gains in Sep QTD      





Real Estate, Manufacturing and Food &amp; Beverage stocks made up close to half of Singapore’s top 200 stocks by turnover in the first 5 months of 2019. The stocks representing tech–laden Manufacturing were the best performers in 2019 YTD and preceding two years, with F&amp;B the best performer in 2016. 
	 
	
Distinct drivers of the three sectors included interest rate outlooks and property prices for Real Estate, technological advancements, value chain integration and global trade for Manufacturing while incomes, tastes, preferences and tourism drove Food &amp; Beverage sales.  
	 
	
Real estate stocks showed the most consistency in returns, with the least standard deviation amongst the individual stock performances, followed by food &amp; beverage stocks, with the individual manufacturing stocks showing the most performance deviation in past years.  
	 
	Returns amongst the relevant 23 manufacturing stocks have been more constant in the 2019 YTD, with the 18% average total return generated by  19 gainers and four decliners, and a median total return of 19%. Hi-P Int, Frencken &amp; Sunpower led the manufacturers over the 23 weeks. 

As 2019 rapidly approaches the halftime mark of 30 June, clear drivers of investor sentiment in the year thus far have included concerns of global growth deceleration at home and abroad, resumption of trade frictions amongst the world’s two largest economies in early May, and a more dovish outlook for US interest rates.

In Singapore, the Straits Times index (“STI”) has generated  a total return of 6.8% in the 2019 year-to-date, in-line with the FTSE ASEAN All Share Index which has gained 7.4%. 

Looking beyond the STI, the 200 most actively traded stocks have generated an average total return of 8.0%. This does not include the average total returns of RHT Health Trust, Memtech International and Indofood Agri Resources which averaged 89.2% gains on premium cash offers for these businesses.

60 Real Estate Stocks Amongst Top 200 Stocks by Turnover 

Singapore’s strong property and infrastructure fundamentals have provided beachheads for Singapore’s listed Real Estate Sector. For the first five months of 2019, the 60 Real Estate stocks amongst the 200 most active traded stocks by turnover accounted for the most day-to-day market turnover, which was followed by Financial Services. As discussed recently (click here) this year Singapore REITs have attracted investment flows from global funds which has included private equity funds.

The 23 manufacturing stocks that were amongst the 200 stocks by turnover accounted for the most day-to-day turnover after the 11 financial services stocks. After Real Estate’s 60 stocks, the 23 manufacturing stocks led by the likes of Yangzijiang Shipbuilding, Venture Corporation and Singapore Tech Engineering, contributed the next most number of stocks in the top 200 by turnover. Note these manufacturing stocks do not include Food Manufacturers or Processors, and span diverse business from advanced electronics to healthcare products.

With Food and Beverage (“F&amp;B”) contributing 14 stocks to the top 200 by turnover, and the next highest number of stocks after Manufacturing, the three sectors of Real Estate, Manufacturing and F&amp;B together made up 97 stocks. This was close to half the top 200 stocks by turnover. The average total returns of the three genres of stocks over recent years are illustrated in the chart below. 

      
    
    Total Returns of Three Genres
The average total returns illustrated above were built on various levels of consistency across the performances of each of the Sector’s stocks. For instance, the 60 real estate stocks showed the most consistency, with the least standard deviation amongst the individual stock performances in all four time periods.

This was followed by F&amp;B, which saw more consistency in the performances across its relevant 14 stocks than Manufacturing over the past three years ending 2018. As noted above, Singapore manufacturing stocks span a wide range of industries, with the diversification exponentiated by the geographical reach of these businesses. This was a contributing factor to the individual manufacturing stocks showing the most performance deviation over the preceding three years.  However, in the 2019 year to date, performances across manufacturing stocks have seen marginally less deviation than the F&amp;B stocks. 

The comparative performances of the relevant stocks are tabled below, with each table sorted by stocks with the most turnover over the first five months of 2019.  The 60 real estate stocks maintain a combined market capitalisation of S$175 billion, the 23 manufacturing stocks maintain a total market capitalisation of S$35 billion and the 14 F&amp;B stocks maintain a total market capitalisation of S$60 billion. Note the designated F&amp;B stocks do not include Palm Oil producers.




			Real Estate
			
			
			Stock

			Code
			
			
			2016 TR %
			
			
			2017 TR %
			
			
			TR 2018 %
			
			
			2019 TR to 11 June %
			
		


			ASCENDAS REAL ESTATE INV TRT
			
			
			A17U
			
			
			4.6
			
			
			27.4
			
			
			0.3
			
			
			18.7
			
		


			CAPITALAND
			
			
			C31
			
			
			-7.2
			
			
			20.1
			
			
			-9.0
			
			
			13.4
			
		


			CAPITALAND COMMERCIAL TRUST
			
			
			C61U
			
			
			16.6
			
			
			42.1
			
			
			-5.0
			
			
			19.3
			
		


			CAPITALAND MALL TRUST
			
			
			C38U
			
			
			3.0
			
			
			19.5
			
			
			12.7
			
			
			16.3
			
		


			MAPLETREE LOGISTICS TRUST
			
			
			M44U
			
			
			10.8
			
			
			38.7
			
			
			1.5
			
			
			24.9
			
		


			HONGKONG LAND HOLDINGS
			
			
			H78
			
			
			-4.8
			
			
			5.5
			
			
			-6.1
			
			
			10.8
			
		


			CITY DEVELOPMENTS
			
			
			C09
			
			
			10.3
			
			
			53.1
			
			
			-33.8
			
			
			12.9
			
		


			SUNTEC REIT
			
			
			T82U
			
			
			13.2
			
			
			37.6
			
			
			-12.8
			
			
			9.5
			
		


			MAPLETREE COMMERCIAL TRUST
			
			
			N2IU
			
			
			14.9
			
			
			23.0
			
			
			7.6
			
			
			25.5
			
		


			UOL GROUP
			
			
			U14
			
			
			-1.5
			
			
			51.2
			
			
			-28.8
			
			
			18.7
			
		


			MAPLETREE NORTH ASIA COMMERC
			
			
			RW0U
			
			
			11.7
			
			
			38.3
			
			
			-1.1
			
			
			22.9
			
		


			KEPPEL REIT
			
			
			K71U
			
			
			17.0
			
			
			30.1
			
			
			-5.2
			
			
			11.3
			
		


			MAPLETREE INDUSTRIAL TRUST
			
			
			ME8U
			
			
			15.8
			
			
			32.2
			
			
			-0.7
			
			
			15.5
			
		


			FRASERS LOGISTICS &amp; INDUSTRI
			
			
			BUOU
			
			
			0.0
			
			
			34.0
			
			
			-4.2
			
			
			19.1
			
		


			KEPPEL DC REIT
			
			
			AJBU
			
			
			26.1
			
			
			27.0
			
			
			-0.7
			
			
			24.6
			
		


			FRASERS CENTREPOINT TRUST
			
			
			J69U
			
			
			9.1
			
			
			24.8
			
			
			2.2
			
			
			20.3
			
		


			ASCOTT RESIDENCE TRUST
			
			
			A68U
			
			
			2.4
			
			
			20.2
			
			
			-6.1
			
			
			22.6
			
		


			FRASERS COMMERCIAL TRUST
			
			
			ND8U
			
			
			7.0
			
			
			27.1
			
			
			-1.7
			
			
			17.7
			
		


			CDL HOSPITALITY TRUSTS
			
			
			J85
			
			
			8.7
			
			
			39.9
			
			
			-8.6
			
			
			13.6
			
		


			YANLORD LAND GROUP
			
			
			Z25
			
			
			33.1
			
			
			25.6
			
			
			-21.6
			
			
			7.9
			
		


			CAPITALAND RETAIL CHINA TRUS
			
			
			AU8U
			
			
			-1.0
			
			
			29.4
			
			
			-12.5
			
			
			16.3
			
		


			ESR-REIT
			
			
			J91U
			
			
			3.6
			
			
			12.0
			
			
			-1.8
			
			
			12.7
			
		


			CROMWELL EUROPEAN REIT
			
			
			CNNU
			
			
			0.0
			
			
			0.0
			
			
			-13.3
			
			
			16.0
			
		


			STARHILL GLOBAL REIT
			
			
			P40U
			
			
			4.7
			
			
			11.6
			
			
			-6.5
			
			
			13.7
			
		


			YING LI INTERNATIONAL REAL E
			
			
			5DM
			
			
			-10.2
			
			
			1.3
			
			
			-23.2
			
			
			20.7
			
		


			CACHE LOGISTICS TRUST
			
			
			K2LU
			
			
			-3.5
			
			
			19.0
			
			
			-12.2
			
			
			12.4
			
		


			FAR EAST HOSPITALITY TRUST
			
			
			Q5T
			
			
			-3.1
			
			
			27.9
			
			
			-10.8
			
			
			9.8
			
		


			MANULIFE US REAL ESTATE INV
			
			
			BTOU
			
			
			0.0
			
			
			18.3
			
			
			-7.2
			
			
			18.5
			
		


			ASCENDAS INDIA TRUST
			
			
			CY6U
			
			
			23.3
			
			
			19.1
			
			
			0.2
			
			
			27.7
			
		


			OUE HOSPITALITY TRUST
			
			
			SK7
			
			
			-1.1
			
			
			38.2
			
			
			-16.0
			
			
			6.6
			
		


			SASSEUR REAL ESTATE INVESTME
			
			
			CRPU
			
			
			0.0
			
			
			0.0
			
			
			0.0
			
			
			31.7
			
		


			OXLEY HOLDINGS
			
			
			5UX
			
			
			1.0
			
			
			71.9
			
			
			-44.7
			
			
			8.0
			
		


			SPH REIT
			
			
			SK6U
			
			
			5.4
			
			
			16.8
			
			
			0.6
			
			
			7.8
			
		


			APAC REALTY
			
			
			CLN
			
			
			0.0
			
			
			0.0
			
			
			-46.4
			
			
			27.8
			
		


			HONG FOK CORP
			
			
			H30
			
			
			-2.4
			
			
			38.2
			
			
			-19.9
			
			
			23.9
			
		


			ASCENDAS HOSPITALITY TRUST
			
			
			Q1P
			
			
			2.9
			
			
			30.8
			
			
			-3.6
			
			
			25.8
			
		


			LIPPO MALLS INDONESIA RETAIL
			
			
			D5IU
			
			
			27.3
			
			
			17.5
			
			
			-50.6
			
			
			28.6
			
		


			WING TAI HOLDINGS
			
			
			W05
			
			
			-6.1
			
			
			47.1
			
			
			-11.8
			
			
			5.2
			
		


			KEPPEL-KBS US REIT
			
			
			CMOU
			
			
			0.0
			
			
			0.0
			
			
			-23.9
			
			
			28.3
			
		


			FRASERS HOSPITALITY TRUST
			
			
			ACV
			
			
			-1.8
			
			
			29.3
			
			
			-4.7
			
			
			4.6
			
		


			AIMS APAC REIT
			
			
			O5RU
			
			
			3.4
			
			
			13.5
			
			
			3.9
			
			
			10.1
			
		


			ACCORDIA GOLF TRUST
			
			
			ADQU
			
			
			31.0
			
			
			17.0
			
			
			-21.1
			
			
			11.1
			
		


			OUE COMMERCIAL REAL ESTATE I
			
			
			TS0U
			
			
			14.6
			
			
			11.0
			
			
			-22.6
			
			
			9.3
			
		


			SOILBUILD BUSINESS SPACE REI
			
			
			SV3U
			
			
			-8.7
			
			
			14.2
			
			
			-6.2
			
			
			8.9
			
		


			OUE
			
			
			LJ3
			
			
			0.5
			
			
			8.2
			
			
			-22.2
			
			
			12.2
			
		


			FRASERS PROPERTY
			
			
			TQ5
			
			
			-1.2
			
			
			39.0
			
			
			-17.4
			
			
			15.1
			
		


			SABANA SHARIAH COMP IND REIT
			
			
			M1GU
			
			
			-33.5
			
			
			12.2
			
			
			6.8
			
			
			18.2
			
		


			TUAN SING HOLDINGS
			
			
			T24
			
			
			-10.6
			
			
			60.8
			
			
			-18.9
			
			
			2.3
			
		


			GUOCOLAND
			
			
			F17
			
			
			4.4
			
			
			28.1
			
			
			-16.3
			
			
			10.0
			
		


			EC WORLD REIT
			
			
			BWCU
			
			
			0.0
			
			
			8.0
			
			
			-1.2
			
			
			16.1
			
		


			DASIN RETAIL TRUST
			
			
			CEDU
			
			
			0.0
			
			
			0.0
			
			
			7.3
			
			
			5.4
			
		


			BUKIT SEMBAWANG ESTATES
			
			
			B61
			
			
			6.7
			
			
			47.1
			
			
			-7.0
			
			
			-1.4
			
		


			IREIT GLOBAL
			
			
			UD1U
			
			
			12.9
			
			
			17.3
			
			
			0.8
			
			
			8.1
			
		


			HO BEE LAND
			
			
			H13
			
			
			3.8
			
			
			24.3
			
			
			0.1
			
			
			4.5
			
		


			PROPNEX
			
			
			OYY
			
			
			0.0
			
			
			0.0
			
			
			0.0
			
			
			18.2
			
		


			UNITED INDUSTRIAL CORP
			
			
			U06
			
			
			-2.8
			
			
			20.6
			
			
			-16.8
			
			
			8.9
			
		


			FORTUNE REIT
			
			
			F25U
			
			
			17.5
			
			
			8.0
			
			
			-0.4
			
			
			23.6
			
		


			BOUSTEAD SINGAPORE
			
			
			F9D
			
			
			-0.6
			
			
			9.8
			
			
			-3.4
			
			
			-2.5
			
		


			SINGHAIYI GROUP
			
			
			5H0
			
			
			-13.4
			
			
			30.7
			
			
			-22.5
			
			
			11.8
			
		


			CENTURION CORP
			
			
			OU8
			
			
			-10.7
			
			
			65.9
			
			
			-16.5
			
			
			1.1
			
		


			Average:
			
			
			 
			
			
			4.1
			
			
			24.7
			
			
			-10.0
			
			
			14.7
			
		

 




			Manufacturing
			
			
			Stock

			Code
			
			
			2016 TR %
			
			
			2017 TR %
			
			
			TR 2018 %
			
			
			2019 TR to 11 June %
			
		


			YANGZIJIANG SHIPBUILDING
			
			
			BS6
			
			
			-22.3
			
			
			86.3
			
			
			-11.4
			
			
			19.2
			
		


			VENTURE CORP
			
			
			V03
			
			
			28.0
			
			
			115.4
			
			
			-29.1
			
			
			19.1
			
		


			SINGAPORE TECH ENGINEERING
			
			
			S63
			
			
			12.3
			
			
			5.0
			
			
			11.8
			
			
			20.3
			
		


			AEM HOLDINGS
			
			
			AWX
			
			
			195.3
			
			
			498.6
			
			
			1.5
			
			
			22.4
			
		


			SEMBCORP MARINE
			
			
			S51
			
			
			-19.3
			
			
			34.9
			
			
			-15.9
			
			
			-1.9
			
		


			HI-P INTERNATIONAL
			
			
			H17
			
			
			4.6
			
			
			326.5
			
			
			-50.8
			
			
			57.1
			
		


			VALUETRONICS HOLDINGS
			
			
			BN2
			
			
			34.3
			
			
			103.5
			
			
			-22.8
			
			
			-2.3
			
		


			SUNPOWER GROUP
			
			
			5GD
			
			
			57.4
			
			
			-11.6
			
			
			-27.6
			
			
			53.0
			
		


			CREATIVE TECHNOLOGY
			
			
			C76
			
			
			-11.9
			
			
			10.9
			
			
			254.2
			
			
			0.5
			
		


			FRENCKEN GROUP
			
			
			E28
			
			
			30.3
			
			
			132.4
			
			
			-18.9
			
			
			53.9
			
		


			HAW PAR CORP
			
			
			H02
			
			
			14.9
			
			
			27.2
			
			
			7.9
			
			
			18.8
			
		


			SUNNINGDALE TECH
			
			
			BHQ
			
			
			22.4
			
			
			83.6
			
			
			-21.9
			
			
			-2.8
			
		


			FU YU CORP
			
			
			F13
			
			
			27.2
			
			
			6.6
			
			
			10.1
			
			
			13.2
			
		


			SARINE TECHNOLOGIES
			
			
			U77
			
			
			20.9
			
			
			-42.4
			
			
			-52.0
			
			
			-29.2
			
		


			RIVERSTONE HOLDINGS
			
			
			AP4
			
			
			-25.0
			
			
			25.6
			
			
			7.9
			
			
			-17.9
			
		


			INNOTEK
			
			
			M14
			
			
			48.6
			
			
			32.7
			
			
			18.3
			
			
			30.0
			
		


			MANUFACTURING INTEGRATION TE
			
			
			M11
			
			
			-25.7
			
			
			48.3
			
			
			18.1
			
			
			22.0
			
		


			CHUAN HUP HOLDINGS
			
			
			C33
			
			
			-15.7
			
			
			37.5
			
			
			-3.7
			
			
			32.1
			
		


			JEP HOLDINGS
			
			
			1J4
			
			
			-31.0
			
			
			86.2
			
			
			-3.6
			
			
			12.6
			
		


			HANWELL HOLDINGS
			
			
			DM0
			
			
			-9.4
			
			
			31.3
			
			
			-43.6
			
			
			41.5
			
		


			MIYOSHI
			
			
			M03
			
			
			19.0
			
			
			62.8
			
			
			-39.6
			
			
			4.9
			
		


			AVARGA
			
			
			U09
			
			
			64.7
			
			
			1.8
			
			
			-23.4
			
			
			20.7
			
		


			HALCYON AGRI CORP
			
			
			5VJ
			
			
			-8.3
			
			
			-5.7
			
			
			-29.8
			
			
			24.4
			
		


			Average:
			
			
			 
			
			
			17.9
			
			
			73.8
			
			
			-2.8
			
			
			17.9
			
		

 




			F&amp;B
			
			
			Stock

			Code
			
			
			2016 TR %
			
			
			2017 TR %
			
			
			TR 2018 %
			
			
			2019 TR to 11 June %
			
		


			THAI BEVERAGE PCL
			
			
			Y92
			
			
			27.2
			
			
			11.3
			
			
			-31.7
			
			
			40.8
			
		


			WILMAR INTERNATIONAL
			
			
			F34
			
			
			25.0
			
			
			-12.1
			
			
			4.3
			
			
			10.8
			
		


			SATS
			
			
			S58
			
			
			30.9
			
			
			10.9
			
			
			-7.2
			
			
			8.2
			
		


			JAPFA
			
			
			UD2
			
			
			94.0
			
			
			-42.8
			
			
			44.6
			
			
			-19.6
			
		


			OLAM INTERNATIONAL
			
			
			O32
			
			
			12.2
			
			
			6.5
			
			
			-15.9
			
			
			15.7
			
		


			KOUFU GROUP
			
			
			VL6
			
			
			0.0
			
			
			0.0
			
			
			0.0
			
			
			14.8
			
		


			SINO GRANDNESS FOOD INDUSTRY
			
			
			T4B
			
			
			-33.8
			
			
			-8.9
			
			
			-38.2
			
			
			-61.0
			
		


			DELFI
			
			
			P34
			
			
			12.0
			
			
			-35.1
			
			
			-5.3
			
			
			-6.8
			
		


			QAF
			
			
			Q01
			
			
			37.8
			
			
			-16.4
			
			
			-45.0
			
			
			36.5
			
		


			JUMBO GROUP
			
			
			42R
			
			
			49.4
			
			
			-9.6
			
			
			-31.4
			
			
			1.7
			
		


			FRASER AND NEAVE
			
			
			F99
			
			
			2.8
			
			
			26.0
			
			
			-32.1
			
			
			4.4
			
		


			BREADTALK GROUP
			
			
			CTN
			
			
			5.4
			
			
			52.1
			
			
			-1.6
			
			
			-2.5
			
		


			JB FOODS
			
			
			BEW
			
			
			32.0
			
			
			69.2
			
			
			38.7
			
			
			11.3
			
		


			KIMLY
			
			
			1D0
			
			
			0.0
			
			
			0.0
			
			
			-30.6
			
			
			2.8
			
		


			Average:
			
			
			 
			
			
			21.1
			
			
			3.7
			
			
			-10.8
			
			
			4.1
			
		

Source: SGX StockFacts, Bloomberg (Data as of 11 June 2019). Note TR = Total Return which assumes dividends are reinvested.

Distinct drivers of the three sectors included interest rate outlooks and property prices for real estate, technological advancements, value chain integration and global trade for manufacturing while incomes, tastes, preferences and tourism drive F&amp;B sales.



Real Estate, Manufacturing and F&B Shares on the Move in 1H19    

Singapore

Capitaland Integrated Commercial Trust operates as a retail estate investment trust. The Compnay invests in retail and office properties and integrated developments. Capitaland Integrated Commercial Trust serves clients in Asia Pacific.

Capitaland Integrated Commercial Trust (CICT SP)

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
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Dividend (Yield)	0.00

Capitaland Integrated Commercial Trust (CICT SP)

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Singapore Exchange Ltd (SGX)

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52-week Range

Market Cap (USDm)

P/E

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