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

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Prices and rentals of Singapore industrial spaces continued to rise in the first quarter of 2022, despite a dip in the overall occupancy rate, according to the quarterly market report published by JTC.

In Q1 2022, the overall occupancy rate fell to 89.8 per cent, a drop of 0.4 percentage points compared to the previous quarter, due to new completions picking up significantly, and increase in supply exceeding new demand.

Despite the drop in occupancy, price and rental indices of all industrial space rose by 2.1 per cent and 1.0 per cent respectively compared to the previous quarter. 
SGX lists 8 industrial S-Reits, of which 6 have exposure to Singapore-based industrial assets.

These 6 trusts are AIMS Apac Reit, Ascendas Reit, ESR-Logos Reit, Mapletree Industrial Trust, Mapletree Logistics Trust and Sabana Industrial Reit. Assets of Daiwa House Logistics Trust and EC World Reit are based in Japan and China respectively.

AIMS Apac Reit reported higher FY22 gross revenue and net property income (NPI) of S$142.4 million and S$103.2 million, rising 16.1 per cent and 17.9 per cent year on year respectively. 
The improved performance was mainly attributed to contributions from recently acquired assets as well as higher rental and recoveries for several Singapore assets. 
Ascendas Reit’s March 2022 occupancy rate of 90.0 per cent for its Singapore portfolio was 0.2 per cent lower compared to a quarter ago, but 3.1 per cent higher than a year ago. 
The Reit recorded an average portfolio rent reversion of 3.9 per cent for Singapore leases renewed in Q1 2022 and expects rental reversion across its overall portfolio for FY22 to be in the positive low single-digit range in view of current market uncertainties. 
ESR-Logos Reit (E-LOG) started trading on May 5, following the successful merger of ESR-Reit and ARA Logos Logistics Trust. 
The Reit’s asset portfolio is valued at S$5.5 billion across Singapore and Australia and it intends to actively leverage on the initial sponsor pipeline of approximately US$2 billion of visible and executable pipeline across key gateway markets in the Asia-Pacific. 
Mapletree Industrial Trust (MIT) announced FY21/22 distribution per unit (DPU) of 13.8 cents, an increase of 10.0 per cent year on year. 
MIT reported higher average overall portfolio occupancy for Q4 FY21/22 compared to the previous quarter, mainly due to improved occupancy of the Singapore portfolio especially among business park buildings and flatted factories. 
Mapletree Logistics Trust’s (MLT) FY21/22 amount distributable to unitholders grew 17.3 per cent year on year to S$390.7 million, while DPU rose 5.5 per cent to 8.787 cents. 
MLT observed that the leasing market in Singapore remains stable with demand boosted by e-commerce growth and business inventory stockpiling. 
Sabana Industrial Reit, in its Q1 2022 business update, reported healthy occupancy of 85.2 per cent and positive rental reversion of 4.0 per cent. 
The Reit noted that this is the 8th quarter in the past 9 quarters where positive reversion was achieved. REIT Watch is a weekly column on The Business Times,<a href="https://www.businesstimes.com.sg/companies-markets/tenant-sales-back-at-pre-covid-levels-for-retail-s-reits"> </a><a href="https://www.businesstimes.com.sg/companies-markets/industrial-s-reits-report-positive-rental-reversions">read </a>the original version.
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    REIT Watch


Prices and rentals of Singapore industrial spaces continued to rise in the first quarter of 2022, despite a dip in the overall occupancy rate, according to the quarterly market report published by JTC.

In Q1 2022, the overall occupancy rate fell to 89.8 per cent, a drop of 0.4 percentage points compared to the previous quarter, due to new completions picking up significantly, and increase in supply exceeding new demand.

Despite the drop in occupancy, price and rental indices of all industrial space rose by 2.1 per cent and 1.0 per cent respectively compared to the previous quarter.  
SGX lists 8 industrial S-Reits, of which 6 have exposure to Singapore-based industrial assets.

These 6 trusts are AIMS Apac Reit, Ascendas Reit, ESR-Logos Reit, Mapletree Industrial Trust, Mapletree Logistics Trust and Sabana Industrial Reit. Assets of Daiwa House Logistics Trust and EC World Reit are based in Japan and China respectively.

AIMS Apac Reit reported higher FY22 gross revenue and net property income (NPI) of S$142.4 million and S$103.2 million, rising 16.1 per cent and 17.9 per cent year on year respectively.  
The improved performance was mainly attributed to contributions from recently acquired assets as well as higher rental and recoveries for several Singapore assets.  
Ascendas Reit’s March 2022 occupancy rate of 90.0 per cent for its Singapore portfolio was 0.2 per cent lower compared to a quarter ago, but 3.1 per cent higher than a year ago.  
The Reit recorded an average portfolio rent reversion of 3.9 per cent for Singapore leases renewed in Q1 2022 and expects rental reversion across its overall portfolio for FY22 to be in the positive low single-digit range in view of current market uncertainties.  
ESR-Logos Reit (E-LOG) started trading on May 5, following the successful merger of ESR-Reit and ARA Logos Logistics Trust.  
The Reit’s asset portfolio is valued at S$5.5 billion across Singapore and Australia and it intends to actively leverage on the initial sponsor pipeline of approximately US$2 billion of visible and executable pipeline across key gateway markets in the Asia-Pacific.  
Mapletree Industrial Trust (MIT) announced FY21/22 distribution per unit (DPU) of 13.8 cents, an increase of 10.0 per cent year on year.  
MIT reported higher average overall portfolio occupancy for Q4 FY21/22 compared to the previous quarter, mainly due to improved occupancy of the Singapore portfolio especially among business park buildings and flatted factories.  
Mapletree Logistics Trust’s (MLT) FY21/22 amount distributable to unitholders grew 17.3 per cent year on year to S$390.7 million, while DPU rose 5.5 per cent to 8.787 cents.  
MLT observed that the leasing market in Singapore remains stable with demand boosted by e-commerce growth and business inventory stockpiling.  
Sabana Industrial Reit, in its Q1 2022 business update, reported healthy occupancy of 85.2 per cent and positive rental reversion of 4.0 per cent.  
The Reit noted that this is the 8th quarter in the past 9 quarters where positive reversion was achieved.  REIT Watch is a weekly column on The Business Times, read the original version.



REIT Watch - Industrial S-Reits report positive rental reversions

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For the 5 trading sessions spanning Apr 29 to May 5, the Straits Times Index (STI) gained 0.3 per cent, with the FTSE China A50 Index gaining 0.3 per cent, the Hang Seng Index gaining 2.5 per cent and the FTSE Bursa Malaysia KLCI declining 0.7 per cent. 

Overall, institutions were net buyers of Singapore stocks over the 5 sessions with S$67 million of net inflow, following S$53 million of net outflow for the preceding 5 sessions.

OCBC, Keppel Corporation, Singapore Telecommunications, Venture Corporation and Jardine Cycle &amp; Carriage led the net institutional outflows for the 5 sessions through to May 5.

Meanwhile, Yangzijiang Financial Holdings, UOB, Mapletree Logisitics Trust, Mapletree Industrial Trust and Thai Beverage received the highest net institutional outflows for the 5 sessions.

Overall, the total net institutional inflows into Singapore stocks in the 2022 year to May 5 came up to S$452 million, while the STI generated an 8.4 per cent total return. Share Buybacks 
There were 12 primary-listed stocks conducting share buybacks over the 5 sessions with a total consideration of S$44.5 million, up from S$10.5 million for the preceding week. 
Wilmar International, Keppel Corporation and Hong Fok Corporation led the consideration tally. 
Wilmar bought back 5.4 million shares at an average price of S$4.41 per share. 
For the previous year’s mandate, it bought back 19.9 million shares, which represented 0.32 per cent of the company’s issued shares (excluding treasury shares). 
The buybacks followed the company reporting financials for its Q1 FY22 (ended Mar 31) on Apr 29. Wilmar reported that its Q1 FY22 core net profit increased by 18.8 per cent year on year to US$503.4 million, attributed to the strong performance in the plantation and sugar milling segment, which was aided by firm palm oil prices. The company also noted that it has officially commenced its first central kitchen operations in Hangzhou, China in early April 2022.  
On Adani Wilmar, the company noted that from an IPO valuation of US$4 billion when it listed on the National Stock Exchange of India on Feb 8, 2022, its market capitalisation had increased by more than 3 times to above US$13 billion as at Apr 28, 2022. 
In addition, the valuation for Shree Renuka Sugars, the 62.5 per cent owned Indian sugar subsidiary, has also gone up sharply from US$863 million on Dec 31, 2021 to US$1.6 billion as at Apr 28, 2022. 
The company added that commodity prices had surged since the onset of the Russian and Ukraine conflict in February 2022 and while the contribution from the Russian and Ukrainian investments is not material, the sustained high commodity prices would benefit its plantation and sugar milling segment in the coming months. Director and substantial shareholder transactions 
The 5 trading sessions saw 100 changes to director interests and substantial shareholdings filed for close to 40 primary-listed stocks. 
This included 18 company director acquisitions with no disposals filed, while substantial shareholders filed 3 acquisitions and 3 disposals. Yangzijiang Financial Holding 
The 5 sessions saw multiple directors of Yangzijiang Financial Holding (YZJFH) acquire shares in the company on the open market. 
YZJFH was spun off from Yangzijiang Shipbuilding Holdings, with the aim of unlocking value for the company’s shareholders. 
YZJFH intends to focus on investing in growth opportunities to achieve attractive risk-adjusted return, while seeking to provide a steady stream of dividends to shareholders through income generated from investment and fund management businesses. 
Shareholders in Yangzijiang Shipbuilding received shares of YZJFH via a dividend in-specie on a one-to-one basis. 
On Apr 29, YZJFH executive director and CEO Vincent Toe Teow Heng acquired 400,000 shares for a consideration of S$228,000 at 57.0 cents per share. 
Toe has over 25 years of experience in fund management and investment advisory, M&amp;A, IPO deals and fundraising, throughout Asia. 
Prior to joining ICHAM, a Singapore-based fund management company as managing director, he was an investment banker at UBS, DBS Bank and JP Morgan. 
Between Apr 29 and May 5, YZJFH lead independent director Chew Sutat acquired 312,000 shares for a consideration of S$164,820 at an average price of 52.8 cents per share. 
Chew was senior managing director and a member of Singapore Exchange’s executive management team for 14 years. 
Prior to joining SGX, he held senior roles at Standard Chartered Bank, OCBC Securities and DBS Bank, where he held varying portfolios in strategic planning and business development for institutional banking and private clients. 
Between May 4 and 5, YZJFH independent director Chua Kim Leng acquired 150,000 shares for a consideration of S$73,500 at an average price of 49.0 cents per share. 
He currently serves on the board of the Casino Regulatory Authority, United Overseas Insurance, ADDX and TEHO International. In 2018, Chua stepped down from his role as special adviser (financial supervision) at the Monetary Authority of Singapore after 25 years of distinguished service. Sabana Industrial REIT 
On Apr 28, Sabana Real Estate Investment Management CEO Donald Han Yong Lee acquired 100,000 units of Sabana Industrial Reit at 45.0 cents per unit. 
On Apr 21, Han noted that the Reit had renewed 44.1 per cent of leases expiring this year and did so at positive rental reversion, while keeping the portfolio occupancy steady at 85.2 per cent. 
For its FY21 (ended Dec 31, 2021) the gross revenue of Sabana Industrial Reit increased by 14.2 per cent year on year to S$81.9 million with net property income increasing 16.4 per cent year on year to S$52.0 million. 
Han is an accomplished and respected consultant across most sectors in the property market, including industrial, having spent more than 30 years in various senior management and advisory positions. 
His experience ranges from residential agency to collective en bloc, office investment sales to retail leasing, regional hospitality and hotel disposition to international project marketing. JB Foods 
On Apr 29, JB Foods executive director and CEO Tey How Keong acquired 82,000 shares of the company for a consideration of S$40,180. 
At 49.0 cents per share, this increased his total interest in JB Foods from 46.78 per cent to 46.81 per cent. 
This followed his acquisition of 29,600 shares at 47.3 cents per share on Mar 23 and 400,000 shares at 52.0 cents per share on Dec 27. 
JB Foods core business is in the production and sale of cocoa ingredient products, namely cocoa mass, cocoa butter and cocoa powder. 
Tey is responsible for the overall strategic, management and business development of the group and has over 25 years of experience in the cocoa business. 
He recently noted that while recent price volatility in cocoa has put pressure on the group to carefully manage its pricing strategy and the pace of expansion, investment and the ramp up of manufacturing capacity, the easing of travel restrictions around the world will continue to fuel stable growth of the cocoa and chocolate industry. 
Tey added that the group remains optimistic that the overall cocoa consumption environment will continue on its growth trajectory post-pandemic. Baker Technology 
On May 4, Baker Technology executive director Benety Chang acquired 82,300 shares of the company at an average price of 43.9 cents per share. 
With a consideration of S$36,127 this increased his total interest in the from 52.92 per cent to 52.96 per cent. 
Prior to this he acquired 279,000 shares of the company at an average price of 44.8 cents per share on March 9. 
He is the major shareholder of the company and has extensive experience in the offshore oil and gas industry. A-Sonic Aerospace 
Between Apr 29 and May 4, A-Sonic Aerospace chief executive officer Janet LC Tan acquired 30,000 shares of the company for a consideration of S$21,300, at 71.0 cents per share. 
This took her total interest in the company from 59.94 per cent to 59.98 per cent. 
She has gradually increased her total interest in A-Sonic Aerospace from 53.35 per cent at the end of 2018. 
Tan has over 20 years of extensive experience in the aviation industry, with her responsibilities at A-Sonic Aerospace including the setting of the overall long-term business direction, developing business strategies, and implementing growth strategies for the A-Sonic Aerospace and its subsidiaries. 
On Apr 22, A-Sonic Aerospace announced it had submitted to SGX-ST an application to extend the cure period beyond Jun 4, 2022 to exit the SGX Watch List. Inside Insights is a weekly column on The Business Times,<a href="https://www.businesstimes.com.sg/companies-markets/hong-fok-continues-buybacks-as-joint-ceo-raises-stake-0"> </a><a href="https://www.businesstimes.com.sg/companies-markets/wilmar-leads-buyback-tally-yzjfh-directors-acquire-shares">read </a>the original version.
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    Share buyback


For the 5 trading sessions spanning Apr 29 to May 5, the Straits Times Index (STI) gained 0.3 per cent, with the FTSE China A50 Index gaining 0.3 per cent, the Hang Seng Index gaining 2.5 per cent and the FTSE Bursa Malaysia KLCI declining 0.7 per cent. 

Overall, institutions were net buyers of Singapore stocks over the 5 sessions with S$67 million of net inflow, following S$53 million of net outflow for the preceding 5 sessions.

OCBC, Keppel Corporation, Singapore Telecommunications, Venture Corporation and Jardine Cycle &amp; Carriage led the net institutional outflows for the 5 sessions through to May 5.

Meanwhile, Yangzijiang Financial Holdings, UOB, Mapletree Logisitics Trust, Mapletree Industrial Trust and Thai Beverage received the highest net institutional outflows for the 5 sessions.

Overall, the total net institutional inflows into Singapore stocks in the 2022 year to May 5 came up to S$452 million, while the STI generated an 8.4 per cent total return.  Share Buybacks  
There were 12 primary-listed stocks conducting share buybacks over the 5 sessions with a total consideration of S$44.5 million, up from S$10.5 million for the preceding week.  
Wilmar International, Keppel Corporation and Hong Fok Corporation led the consideration tally.  
Wilmar bought back 5.4 million shares at an average price of S$4.41 per share.  
For the previous year’s mandate, it bought back 19.9 million shares, which represented 0.32 per cent of the company’s issued shares (excluding treasury shares).  
The buybacks followed the company reporting financials for its Q1 FY22 (ended Mar 31) on Apr 29. Wilmar reported that its Q1 FY22 core net profit increased by 18.8 per cent year on year to US$503.4 million, attributed to the strong performance in the plantation and sugar milling segment, which was aided by firm palm oil prices. The company also noted that it has officially commenced its first central kitchen operations in Hangzhou, China in early April 2022.   
On Adani Wilmar, the company noted that from an IPO valuation of US$4 billion when it listed on the National Stock Exchange of India on Feb 8, 2022, its market capitalisation had increased by more than 3 times to above US$13 billion as at Apr 28, 2022.  
In addition, the valuation for Shree Renuka Sugars, the 62.5 per cent owned Indian sugar subsidiary, has also gone up sharply from US$863 million on Dec 31, 2021 to US$1.6 billion as at Apr 28, 2022.  
The company added that commodity prices had surged since the onset of the Russian and Ukraine conflict in February 2022 and while the contribution from the Russian and Ukrainian investments is not material, the sustained high commodity prices would benefit its plantation and sugar milling segment in the coming months.  Director and substantial shareholder transactions  
The 5 trading sessions saw 100 changes to director interests and substantial shareholdings filed for close to 40 primary-listed stocks.  
This included 18 company director acquisitions with no disposals filed, while substantial shareholders filed 3 acquisitions and 3 disposals.  Yangzijiang Financial Holding  
The 5 sessions saw multiple directors of Yangzijiang Financial Holding (YZJFH) acquire shares in the company on the open market.  
YZJFH was spun off from Yangzijiang Shipbuilding Holdings, with the aim of unlocking value for the company’s shareholders.  
YZJFH intends to focus on investing in growth opportunities to achieve attractive risk-adjusted return, while seeking to provide a steady stream of dividends to shareholders through income generated from investment and fund management businesses.  
Shareholders in Yangzijiang Shipbuilding received shares of YZJFH via a dividend in-specie on a one-to-one basis.  
On Apr 29, YZJFH executive director and CEO Vincent Toe Teow Heng acquired 400,000 shares for a consideration of S$228,000 at 57.0 cents per share.  
Toe has over 25 years of experience in fund management and investment advisory, M&amp;A, IPO deals and fundraising, throughout Asia.  
Prior to joining ICHAM, a Singapore-based fund management company as managing director, he was an investment banker at UBS, DBS Bank and JP Morgan.  
Between Apr 29 and May 5, YZJFH lead independent director Chew Sutat acquired 312,000 shares for a consideration of S$164,820 at an average price of 52.8 cents per share.  
Chew was senior managing director and a member of Singapore Exchange’s executive management team for 14 years.  
Prior to joining SGX, he held senior roles at Standard Chartered Bank, OCBC Securities and DBS Bank, where he held varying portfolios in strategic planning and business development for institutional banking and private clients.  
Between May 4 and 5, YZJFH independent director Chua Kim Leng acquired 150,000 shares for a consideration of S$73,500 at an average price of 49.0 cents per share.  
He currently serves on the board of the Casino Regulatory Authority, United Overseas Insurance, ADDX and TEHO International. In 2018, Chua stepped down from his role as special adviser (financial supervision) at the Monetary Authority of Singapore after 25 years of distinguished service.  Sabana Industrial REIT  
On Apr 28, Sabana Real Estate Investment Management CEO Donald Han Yong Lee acquired 100,000 units of Sabana Industrial Reit at 45.0 cents per unit.  
On Apr 21, Han noted that the Reit had renewed 44.1 per cent of leases expiring this year and did so at positive rental reversion, while keeping the portfolio occupancy steady at 85.2 per cent.  
For its FY21 (ended Dec 31, 2021) the gross revenue of Sabana Industrial Reit increased by 14.2 per cent year on year to S$81.9 million with net property income increasing 16.4 per cent year on year to S$52.0 million.  
Han is an accomplished and respected consultant across most sectors in the property market, including industrial, having spent more than 30 years in various senior management and advisory positions.  
His experience ranges from residential agency to collective en bloc, office investment sales to retail leasing, regional hospitality and hotel disposition to international project marketing.  JB Foods  
On Apr 29, JB Foods executive director and CEO Tey How Keong acquired 82,000 shares of the company for a consideration of S$40,180.  
At 49.0 cents per share, this increased his total interest in JB Foods from 46.78 per cent to 46.81 per cent.  
This followed his acquisition of 29,600 shares at 47.3 cents per share on Mar 23 and 400,000 shares at 52.0 cents per share on Dec 27.  
JB Foods core business is in the production and sale of cocoa ingredient products, namely cocoa mass, cocoa butter and cocoa powder.  
Tey is responsible for the overall strategic, management and business development of the group and has over 25 years of experience in the cocoa business.  
He recently noted that while recent price volatility in cocoa has put pressure on the group to carefully manage its pricing strategy and the pace of expansion, investment and the ramp up of manufacturing capacity, the easing of travel restrictions around the world will continue to fuel stable growth of the cocoa and chocolate industry.  
Tey added that the group remains optimistic that the overall cocoa consumption environment will continue on its growth trajectory post-pandemic.  Baker Technology  
On May 4, Baker Technology executive director Benety Chang acquired 82,300 shares of the company at an average price of 43.9 cents per share.  
With a consideration of S$36,127 this increased his total interest in the from 52.92 per cent to 52.96 per cent.  
Prior to this he acquired 279,000 shares of the company at an average price of 44.8 cents per share on March 9.  
He is the major shareholder of the company and has extensive experience in the offshore oil and gas industry.  A-Sonic Aerospace  
Between Apr 29 and May 4, A-Sonic Aerospace chief executive officer Janet LC Tan acquired 30,000 shares of the company for a consideration of S$21,300, at 71.0 cents per share.  
This took her total interest in the company from 59.94 per cent to 59.98 per cent.  
She has gradually increased her total interest in A-Sonic Aerospace from 53.35 per cent at the end of 2018.  
Tan has over 20 years of extensive experience in the aviation industry, with her responsibilities at A-Sonic Aerospace including the setting of the overall long-term business direction, developing business strategies, and implementing growth strategies for the A-Sonic Aerospace and its subsidiaries.  
On Apr 22, A-Sonic Aerospace announced it had submitted to SGX-ST an application to extend the cure period beyond Jun 4, 2022 to exit the SGX Watch List.  Inside Insights is a weekly column on The Business Times, read the original version.



Wilmar leads buyback tally; YZJFH directors acquire shares

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/aims-amp-capital-industrial" target="_blank" data-smartkarma-citation="entities:933" rel="noopener">AIMS APAC REIT (AAREIT SP)</a> 2H22 DPU -4.8% YoY; Robust rent reversions to end the fiscal year</li><li><a href="https://www.smartkarma.com/entities/esr-reit" target="_blank" data-smartkarma-citation="entities:10934" rel="noopener">ESR-REIT (EREIT SP)</a> 1Q22 DPU -9.6% YoY; Rising utilities costs despite steady underlying performance  </li><li><a href="https://www.smartkarma.com/entities/frasers-centrepoint-trust" target="_blank" data-smartkarma-citation="entities:2870" rel="noopener">Frasers Centrepoint Trust (FCT SP)</a> 1H22 DPU +2.3% YoY; Omicron wave tapering shopper traffic</li></ul>

AIMS APAC REIT (AAREIT SP) 2H22 DPU -4.8% YoY; Robust rent reversions to end the fiscal yearESR-REIT (EREIT SP) 1Q22 DPU -9.6% YoY; Rising utilities costs despite steady underlying performance  Frasers Centrepoint Trust (FCT SP) 1H22 DPU +2.3% YoY; Omicron wave tapering shopper traffic

ASEAN Builder's Scoop (27Apr22) - AAREIT Robust Rent Reversions

Mapletree North Asia Commercial Trust / Equity Bottom-Up

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SPH Reit kicked off the current financial reporting season for S-Reits on Apr 1, 2022 with the release of its H1 FY2022 (ended Feb 28, 2022) financial results.

This was followed by 7 other S-Reits, including Keppel DC Reit (Q1 business update), Keppel Pacific Oak US Reit (Q1 business update), Mapletree North Asia Commercial Trust (full-year results), Keppel Reit (Q1 business update), Mapletree Commercial Trust (full-year results), Digital Core Reit (Q1 business update) and Sabana Industrial Reit (Q1 business update), over a 3-day period from Apr 19 to 21, 2022.

Another 22 S-Reits have also confirmed that they will unveil financial results or business updates between Apr 22, 2022 and May 12, 2022 for their respective periods ended Mar 31, 2022. 
Among them, 3 would be reporting full-year financial results, 4 would be reporting first-half or first-quarter financial results, and another 15 would be providing quarterly business updates.

Mapletree North Asia Commercial Trust (MNACT) and Mapletree Commercial Trust (MCT) have both released financial results for the full year from Apr 1, 2021 to Mar 31, 2022 (FY21/22) while Mapletree Industrial Trust and Mapletree Logistics Trust will be unveiling full-year results on Apr 26 and 28, respectively.

Both MNACT and MCT managers reiterated their confidence and commitment to the proposed merger of the 2 trusts, citing long-term value and scale of the merged entity. 
On Mar 21, 2022, the trusts announced an alternative option for MNACT unitholders to receive the scheme consideration wholly in cash, providing additional optionality and enhanced flexibility to MNACT unitholders who wish to fully realise their investment, given higher uncertainty amid prevailing market conditions.

Both trusts are expected to hold extraordinary general meetings (EGMs) to obtain approvals from unitholders by end May 2022. REIT Watch is a weekly column on The Business Times,<a href="https://www.businesstimes.com.sg/companies-markets/singapore-office-s-reits-poised-to-benefit-from-positive-rental-momentum-0"> </a><a href="https://www.businesstimes.com.sg/companies-markets/upcoming-s-reits-earnings-releases-schedule-0">read </a>the original version.
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    Schedule of SREIT earnings


SPH Reit kicked off the current financial reporting season for S-Reits on Apr 1, 2022 with the release of its H1 FY2022 (ended Feb 28, 2022) financial results.

This was followed by 7 other S-Reits, including Keppel DC Reit (Q1 business update), Keppel Pacific Oak US Reit (Q1 business update), Mapletree North Asia Commercial Trust (full-year results), Keppel Reit (Q1 business update), Mapletree Commercial Trust (full-year results), Digital Core Reit (Q1 business update) and Sabana Industrial Reit (Q1 business update), over a 3-day period from Apr 19 to 21, 2022.

Another 22 S-Reits have also confirmed that they will unveil financial results or business updates between Apr 22, 2022 and May 12, 2022 for their respective periods ended Mar 31, 2022.  
Among them, 3 would be reporting full-year financial results, 4 would be reporting first-half or first-quarter financial results, and another 15 would be providing quarterly business updates.

Mapletree North Asia Commercial Trust (MNACT) and Mapletree Commercial Trust (MCT) have both released financial results for the full year from Apr 1, 2021 to Mar 31, 2022 (FY21/22) while Mapletree Industrial Trust and Mapletree Logistics Trust will be unveiling full-year results on Apr 26 and 28, respectively.

Both MNACT and MCT managers reiterated their confidence and commitment to the proposed merger of the 2 trusts, citing long-term value and scale of the merged entity.  
On Mar 21, 2022, the trusts announced an alternative option for MNACT unitholders to receive the scheme consideration wholly in cash, providing additional optionality and enhanced flexibility to MNACT unitholders who wish to fully realise their investment, given higher uncertainty amid prevailing market conditions.

Both trusts are expected to hold extraordinary general meetings (EGMs) to obtain approvals from unitholders by end May 2022.  REIT Watch is a weekly column on The Business Times, read the original version.



REIT Watch - Upcoming S-Reits' earnings releases schedule

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 <div class='content-caption'>Tenant breakdown</div>
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The data centre industry has experienced tremendous growth in the past 2 years, as businesses are faced with a sudden and increased need for greater cloud capacity to enable work-from-home arrangements.

According to Cushman &amp; Wakefield's 2022 Global Data Center Market Comparison report, the top 10 markets with the greatest capacity under development include London, Northern Virginia, Silicon Valley, Atlanta, Chicago, Dublin, Hong Kong, Phoenix, Singapore and Jakarta.

The report also highlighted the 3 main types of challenges and responsibilities that data centre operators face. These include the ability to source for renewable energy, the ability to develop better methods of cooling servers and the ability to design more efficient facilities to meet the sustainability goals of clients and governments. 
In Singapore, data centres accounted for 7 per cent of Singapore's total electricity consumption in 2020.

Earlier this year, the moratorium on new data centres in Singapore was lifted, with certain criteria on energy efficiency.

Minister for Trade and Industry, Gan Kim Yong had said that the government had "to find a way to manage the growth of data centres in a sustainable manner consistent with our climate change commitments". 
SGX lists several Reits with substantial data centre assets, including Mapletree Industrial Trust,  Ascendas Reit and 2 pure play data centre Reits - Keppel DC Reit and Digital Core Reit.  
Keppel DC Reit (KDCReit), Asia's first pure-play data centre Reit, has 21 properties located across 9 countries in Asia-Pacific and Europe.

The Reit also has the right of first refusal for S$2 billion of potential data centre assets for acquisitions through its sponsor, Keppel T&amp;T as well as Keppel's private data centre funds.

In its most recent FY21 results, KDCReit posted a record high portfolio occupancy of 98.3 per cent and announced distribution per unit (DPU) of 9.851 cents, representing a 7.4 per cent year-on-year growth.

The Reit has also committed to progressively reduce its combined Scope 1 and Scope 2 emissions with an aim to halve it by 2030 from a 2019 baseline.

It also aims to introduce renewable energy to at least 50 per cent of its colocation assets by 2030, as well as encourage the use of renewable energy at all other portfolio assets.

Digital Core Reit, which listed on the SGX in 2021, has a portfolio of 10 data centres across the United States and Canada.

The Reit's core strategy includes investing in high-quality assets with strategic locations generating long-term pricing power and well-maintained physical structure.

Digital Core Reit has projected a DPU of 4.18 US cents for FY2022 and guided for a 5.3 per cent DPU growth in FY2023.

The Reit has committed to delivering sustainable growth for all stakeholders and aims to reduce Scope 1 and 2 emissions by 68 per cent and Scope 3 emissions by 24 per cent by 2030. REIT Watch is a weekly column on The Business Times,<a href="https://www.businesstimes.com.sg/companies-markets/singapore-office-s-reits-poised-to-benefit-from-positive-rental-momentum-0"> </a><a href="https://www.businesstimes.com.sg/companies-markets/data-centre-s-reits-committed-to-sustainable-growth-0">read</a><a href="https://www.businesstimes.com.sg/companies-markets/singapore-office-s-reits-poised-to-benefit-from-positive-rental-momentum-0"> </a>the original version.
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    Tenant breakdown


The data centre industry has experienced tremendous growth in the past 2 years, as businesses are faced with a sudden and increased need for greater cloud capacity to enable work-from-home arrangements.

According to Cushman &amp; Wakefield's 2022 Global Data Center Market Comparison report, the top 10 markets with the greatest capacity under development include London, Northern Virginia, Silicon Valley, Atlanta, Chicago, Dublin, Hong Kong, Phoenix, Singapore and Jakarta.

The report also highlighted the 3 main types of challenges and responsibilities that data centre operators face. These include the ability to source for renewable energy, the ability to develop better methods of cooling servers and the ability to design more efficient facilities to meet the sustainability goals of clients and governments.  
In Singapore, data centres accounted for 7 per cent of Singapore's total electricity consumption in 2020.

Earlier this year, the moratorium on new data centres in Singapore was lifted, with certain criteria on energy efficiency.

Minister for Trade and Industry, Gan Kim Yong had said that the government had "to find a way to manage the growth of data centres in a sustainable manner consistent with our climate change commitments".  
SGX lists several Reits with substantial data centre assets, including Mapletree Industrial Trust,  Ascendas Reit and 2 pure play data centre Reits - Keppel DC Reit and Digital Core Reit.   
Keppel DC Reit (KDCReit), Asia's first pure-play data centre Reit, has 21 properties located across 9 countries in Asia-Pacific and Europe.

The Reit also has the right of first refusal for S$2 billion of potential data centre assets for acquisitions through its sponsor, Keppel T&amp;T as well as Keppel's private data centre funds.

In its most recent FY21 results, KDCReit posted a record high portfolio occupancy of 98.3 per cent and announced distribution per unit (DPU) of 9.851 cents, representing a 7.4 per cent year-on-year growth.

The Reit has also committed to progressively reduce its combined Scope 1 and Scope 2 emissions with an aim to halve it by 2030 from a 2019 baseline.

It also aims to introduce renewable energy to at least 50 per cent of its colocation assets by 2030, as well as encourage the use of renewable energy at all other portfolio assets.

Digital Core Reit, which listed on the SGX in 2021, has a portfolio of 10 data centres across the United States and Canada.

The Reit's core strategy includes investing in high-quality assets with strategic locations generating long-term pricing power and well-maintained physical structure.

Digital Core Reit has projected a DPU of 4.18 US cents for FY2022 and guided for a 5.3 per cent DPU growth in FY2023.

The Reit has committed to delivering sustainable growth for all stakeholders and aims to reduce Scope 1 and 2 emissions by 68 per cent and Scope 3 emissions by 24 per cent by 2030.  REIT Watch is a weekly column on The Business Times, read the original version.



REIT Watch - Data centre S-Reits committed to sustainable growth

Singapore

Mapletree Pan Asia Commercial Trust is a Singapore-focused real estate investment trust. The Trust invests on a long-term basis, directly or indirectly, in a diversified portfolio of income-producing real estate used primarily for office and/or retail purposes, whether wholly or partially, as well as real estate-related assets.

Mapletree Pan Asia Commercial Trust (MCT SP)

Mapletree Logistics Trust is an Asia-focused logistics real estate investment trust. The Company invests in a diversified portfolio of income-producing real estate which is used for logistics purposes.

Suntec Real Estate Investment Trust is a commercial real estate investment trust. The Trust invests in income-producing real estate that is primarily used for retail and/or office purposes.

Frasers Centrepoint Trust is a retail real estate investment trust focused on growing unitholder value through asset management, financial management and strategic investments.  The trust invests in retail properties in Singapore and overseas.

FLT offers investors an opportunity to invest in logistics and industrial real estate assets strategically located within major logistics and industrial markets of Australia, Germany and the Netherlands.

Frasers Logistics & Commercial Trust (FLT SP)

Keppel DC REIT is Asia's first pure-play data centre REIT listed on the Singapore Exchange. Keppel DC REIT's investment strategy is to principally invest, directly or indirectly, in a diversified portfolio of income-producing real estate assets which are used primarily for data centre purposes, as well as real estate related assets.

Keppel REIT operates as a commercial real estate investment trust. The Trust owns and invests in a portfolio of income-producing office buildings and related real estate assets. Keppel REIT offers its services in Asia and Australia.

SPH REIT is a Singapore-based REIT established principally to invest, directly or indirectly, in a portfolio of income-producing real estate which is used primarily for retail purposes in Asia-Pacific, as well as real estate-related assets.

ESR-LOGOS Real Estate Investment Trust (“ESR-LOGOS REIT”) is a leading New Economy and future-ready Asia Pacific S-REIT. Listed on the Singapore Exchange Securities Trading Limited since 25 July 2006, ESR-LOGOS REIT invests in quality income-producing industrial properties in key gateway markets.

As at 28 April 2022, ESR-LOGOS REIT holds interests in a diversified portfolio of logistics properties, high-specifications industrial properties, business parks and general industrial properties with total assets of approximately S$5.5 billion. Its portfolio comprises 84 properties located across the developed markets of Singapore (63 assets) and Australia (21 assets), with a total gross floor area of approximately 2.4 million sqm, as well as investments in three property funds in Australia. ESR-LOGOS REIT is also a constituent of the FTSE EPRA Nareit Global Real Estate Index. 

ESR-LOGOS REIT is managed by ESR-LOGOS Funds Management (S) Limited (the “Manager”) and sponsored by the ESR Group (“ESR”). The Manager is owned by ESR (67.3%), Shanghai Summit Pte. Ltd. (25.0%), and Mitsui & Co., Ltd (7.7%), respectively.

For further information on ESR-LOGOS REIT, please visit www.esr-logosreit.com.sg.

Parkway Life Real Estate Investment Trust (Parkway Life REIT) invests primarily in income producing real estate and real estate related assets in the Asia Pacific region. The trust's real estate is used primarily for healthcare and healthcare-related purposes.

GPT Group is an active owner and manager of a diversified portfolio of Australian retail, office and industrial property assets. The Group's property portfolio include the MLC Centre, Australia Square, Rouse Hill Town Centre and Melbourne Central.

Vicinity Centres retails asset and property management services. The Company offers a retail property investment and services organization involved in the ownership, management, and development of retail properties. The Company operates shopping centers across Australia.

Dexus provides real estate services. The Company manages and invests in a portfolio of diversified properties, including office and industrial buildings, retail shopping centers, and car parks. Dexus serves customers in Australia and New Zealand.

Japan Metropolitan Fund Investment Corporation operates real estate investment trust. The Company provides securitized real estate investment, real estate leasing, shopping centers investment, and other services. Japan Metropolitan Fund Investment provides its services throughout Japan.

Japan Metropolitan Fund Investment Corporation (8953 JP)

Japan Metropolitan Fund Investment Corporation

Ryman Hospitality Properties, Inc. is a real estate investment trust specializing in group-oriented, destination hotel assets in urban and resort markets.

Sabra Health Care REIT, Inc. is a real estate investment trust.  The trust owns nursing homes, rehabilitation centers, assisted living facilities, and independent living centers.

The Macerich Company is a fully integrated, self-administered and self-managed real estate investment trust.  The Company acquires, owns, redevelops, manages, and leases regional and community shopping centers located throughout the United States.

Independence Realty Trust, Inc. is an externally managed and advised apartment REIT focused on acquiring and owning well-located garden-style and mid-rise apartment properties throughout the United States.

Kite Realty Group Trust is a full-service, vertically integrated real estate company focused primarily on the development, construction, acquisition, ownership and operation of neighborhood and community shopping centers.  The company own properties in Indiana, Florida, Texas, Washington, Oregon, New Jersey, Illinois and Georgia.

Charter Hall Group invests in and develops real estate.  The Company manages real estate investment funds and develops commercial, residential, and industrial properties.

Mapletree Industrial Trust is a Singapore-focused real estate investment trust with a large and diversified portfolio of industrial properties. The Trust invests in a diverse portfolio of industrial properties with the primary objective of achieving an attractive level of return from rental income and for long-term capital growth.

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Mapletree Industrial Trust (MINT SP)

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