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.





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      

<!DOCTYPE html PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN" "http://www.w3.org/TR/REC-html40/loose.dtd">
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<ul>
<li>
For the June quarter, SGX’s four largest industrial REITs – Ascendas REIT, Mapletree Logistics Trust, Mapletree Industrial Trust and Frasers Logistics &amp; Industrial Trust – averaged a DPU of 2.72 Singapore cents, up 0.8% YoY. Ascendas REIT reported the highest DPU of 4.01 cents, while Mapletree Logistics Trust registered the highest YoY growth in DPU of 3.5%. 
	 </li>
	<li>
For the quarter, Ascendas REIT and Mapletree Logistics Trust had the highest aggregate leverage ratios of 37.2% and 36.8% respectively, while Mapletree Industrial Trust had the lowest gearing of 33.4%. Frasers Logistics &amp; Industrial Trust had the highest interest coverage ratio of 7.3x in the quarter, followed by Mapletree Industrial Trust at 6.6x. 
	 </li>
	<li>In the YTD, SGX’s four largest industrial trusts averaged a total return of 23.4%. The best performers among the four were Mapletree Logistics Trust and Mapletree Industrial Trust, with YTD total returns of 29.0% and 22.5% respectively.</li>
</ul>
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 the first six months of 2019, drawing net institutional inflows of S$396.3 million over the period.

Of the 35 REITs on SGX, 11 are engaged in the acquisition, development, ownership, management and operation of industrial properties, data centres and logistics clusters, spanning Singapore, Malaysia, Vietnam, Japan, South Korea, China, Hong Kong, Australia, US, UK, Germany, and the Netherlands. Among these 11 trusts, the four largest industrial trusts by market capitalisation are: Ascendas REIT, Mapletree Logistics Trust, Mapletree Industrial Trust and Frasers Logistics &amp; Industrial Trust. Over the last two weeks, these four largest industrial REITs have reported results for the three months ended 30 June 2019.

Earnings Highlights  For the three months ended 30 June 2019, the four trusts averaged a distribution per unit (DPU) of 2.72 Singapore cents, up an average 0.8% YoY.

Ascendas REIT reported the highest DPU of 4.01 Singapore cents among the four trusts, up 0.1% YoY, followed by Mapletree Industrial Trust with a DPU of 3.10 Singapore cents, up 3.3% YoY. Among the four REITs, Mapletree Logistics Trust registered the highest YoY growth in DPU of 3.5%, while Frasers Logistics &amp; Industrial Trust registered a YoY decline of 3.9% in DPU.

These trusts averaged a 16.6% YoY rise in net property income to S$58.3 million, while gross revenue gained an average 12.5% YoY to S$69.9 million.

On average, the four REITs had an aggregate leverage ratio of 35.7% as of the quarter ended 30 June 2019. This compares with an average of 35.9% in the year-ago period. Ascendas REIT and Mapletree Logistics Trust had the highest aggregate leverage ratios of 37.2% and 36.8% respectively, while Mapletree Industrial Trust had the lowest gearing of 33.4%. Interest cover for the four trusts averaged 6.0 times in the June quarter, unchanged from the year-ago period. Frasers Logistics &amp; Industrial Trust had the highest ICR of 7.3x in the quarter, followed by Mapletree Industrial Trust at 6.6x.

June Quarter Financial Performances

<table class="table table-striped"><tbody>
<tr>
<td>
			Name
			</td>
			<td>
			Distribution Per Unit (SG cts)
			</td>
			<td>
			YoY Change (%)
			</td>
			<td>
			Net Property Income (S$M)
			</td>
			<td>
			YoY % change
			</td>
			<td>
			Gross Revenue (S$M)
			</td>
			<td>
			YoY Change (%)
			</td>
		</tr>
<tr>
<td>
			ASCENDAS REIT^
			</td>
			<td>
			4.01~
			</td>
			<td>
			0.1
			</td>
			<td>
			177.5
			</td>
			<td>
			11.5
			</td>
			<td>
			229.7
			</td>
			<td>
			6.1
			</td>
		</tr>
<tr>
<td>
			MAPLETREE LOGISTICS TRUST
			</td>
			<td>
			2.03
			</td>
			<td>
			3.5
			</td>
			<td>
			106,128
			</td>
			<td>
			18.2
			</td>
			<td>
			119,811
			</td>
			<td>
			13.6
			</td>
		</tr>
<tr>
<td>
			MAPLETREE INDUSTRIAL TRUST
			</td>
			<td>
			3.10
			</td>
			<td>
			3.3
			</td>
			<td>
			77,919
			</td>
			<td>
			12.2
			</td>
			<td>
			99,575
			</td>
			<td>
			8.8
			</td>
		</tr>
<tr>
<td>
			FRASERS LOGISTICS &amp; INDUSTRIAL TRUST
			</td>
			<td>
			1.73
			</td>
			<td>
			-3.9
			</td>
			<td>
			48,882*
			</td>
			<td>
			24.4
			</td>
			<td>
			59,952
			</td>
			<td>
			21.6
			</td>
		</tr>
<tr>
<td>
			Average
			</td>
			<td>
			2.72
			</td>
			<td>
			0.8
			</td>
			<td>
			58,277
			</td>
			<td>
			16.6
			</td>
			<td>
			69,892
			</td>
			<td>
			12.5
			</td>
		</tr>
</tbody></table>
 

<table class="table table-striped"><tbody>
<tr>
<td>
			Name
			</td>
			<td>
			Aggregate Leverage Ratio (%) as at 30 June 2019
			</td>
			<td>
			Aggregate Leverage Ratio (%) as at 30 June 2018
			</td>
			<td>
			Interest Coverage Ratio (x) as at 30 June 2019
			</td>
			<td>
			Interest Coverage Ratio (x) as at 30 June 2018
			</td>
		</tr>
<tr>
<td>
			ASCENDAS REIT
			</td>
			<td>
			37.2
			</td>
			<td>
			35.7
			</td>
			<td>
			5.0
			</td>
			<td>
			5.6
			</td>
		</tr>
<tr>
<td>
			MAPLETREE LOGISTICS TRUST
			</td>
			<td>
			36.8
			</td>
			<td>
			36.4
			</td>
			<td>
			4.9
			</td>
			<td>
			5.2
			</td>
		</tr>
<tr>
<td>
			MAPLETREE INDUSTRIAL TRUST
			</td>
			<td>
			33.4
			</td>
			<td>
			35.0
			</td>
			<td>
			6.6
			</td>
			<td>
			6.9
			</td>
		</tr>
<tr>
<td>
			FRASERS LOGISTICS &amp; INDUSTRIAL TRUST
			</td>
			<td>
			35.4
			</td>
			<td>
			36.3
			</td>
			<td>
			7.3
			</td>
			<td>
			6.4
			</td>
		</tr>
<tr>
<td>
			Average
			</td>
			<td>
			35.7
			</td>
			<td>
			35.9
			</td>
			<td>
			6.0
			</td>
			<td>
			6.0
			</td>
		</tr>
</tbody></table>
Source: Company data 
*adjusted 
^data for 1Q FY2019; FY2019 covers 1 Apr 2019 to 31 Dec 2019, after FY end was changed from 31 March to 31 December ~includes capital distributions

Outlook 
Both Mapletree Logistics Trust and Mapletree Industrial Trust cited increased caution in the domestic industrial property market as global economic growth softened, and trading and manufacturing activity in the first half of the year decelerated in tandem with the ongoing US-Sino trade tensions.

“In MLT’s markets, overall leasing demand for warehouse space has been relatively resilient to-date. However, customers have become more cautious on renewals and capacity expansion,” Mapletree Logistics noted in its 22 July 2019 results statement.

Down under in Australia, industrial take-up levels remain robust, driven by strong population growth, public infrastructure spending and the rise of e-commerce, Frasers Logistics &amp; Industrial Trust said in its 26 July results statement. Vacancy remains at five-year lows across the major industrial markets of Sydney, Melbourne and Brisbane, while prime face rents have posted steady YoY growth of 2% to 3%, the trust added.

The outlook also remains bright in Europe – take-up levels for logistics and industrial properties of above 5,000 square metres for Germany and the Netherlands remain high, Frasers noted.

YTD Performances

In the YTD, SGX’s four largest industrial trusts averaged a total return of 23.4%, bringing their one-year and three year total returns to 22.4% and 15.6%. They also averaged a price-to-book ratio of 1.2 times and a dividend indicated yield of 5.6%. The best performers among the four were Mapletree Logistics Trust and Mapletree Industrial Trust, with YTD total returns of 29.0% and 22.5% respectively.

The table below details SGX’s four largest industrial REITs, sorted by market capitalisation.

<table class="table table-striped"><tbody>
<tr>
<td>
			Name
			</td>
			<td>
			SGX Code
			</td>
			<td>
			Market Cap (S$M)
			</td>
			<td>
			Total Return YTD (%)
			</td>
			<td>
			Total Return 1Y (%)
			</td>
			<td>
			Total Return 3Y (%)
			</td>
			<td>
			PB (x)
			</td>
			<td>
			Div Ind Yld (%)
			</td>
		</tr>
<tr>
<td>
			ASCENDAS REIT
			</td>
			<td>
			A17U
			</td>
			<td>
			9,494
			</td>
			<td>
			21.9
			</td>
			<td>
			18.3
			</td>
			<td>
			13.0
			</td>
			<td>
			1.2
			</td>
			<td>
			5.3
			</td>
		</tr>
<tr>
<td>
			MAPLETREE LOGISTICS TRUST
			</td>
			<td>
			M44U
			</td>
			<td>
			5,670
			</td>
			<td>
			29.0
			</td>
			<td>
			30.0
			</td>
			<td>
			21.5
			</td>
			<td>
			1.0
			</td>
			<td>
			5.2
			</td>
		</tr>
<tr>
<td>
			MAPLETREE INDUSTRIAL TRUST
			</td>
			<td>
			ME8U
			</td>
			<td>
			4,594
			</td>
			<td>
			22.5
			</td>
			<td>
			19.4
			</td>
			<td>
			14.8
			</td>
			<td>
			1.3
			</td>
			<td>
			5.4
			</td>
		</tr>
<tr>
<td>
			FRASERS LOGISTICS &amp; INDUSTRIAL TRUST
			</td>
			<td>
			BUOU
			</td>
			<td>
			2,432
			</td>
			<td>
			20.1
			</td>
			<td>
			21.9
			</td>
			<td>
			13.2
			</td>
			<td>
			1.2
			</td>
			<td>
			6.5
			</td>
		</tr>
<tr>
<td>
			Average
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			23.4
			</td>
			<td>
			22.4
			</td>
			<td>
			15.6
			</td>
			<td>
			1.2
			</td>
			<td>
			5.6
			</td>
		</tr>
</tbody></table>
Source: Bloomberg &amp; StockFacts (data as of 29 July 2019)
</body></html>





For the June quarter, SGX’s four largest industrial REITs – Ascendas REIT, Mapletree Logistics Trust, Mapletree Industrial Trust and Frasers Logistics &amp; Industrial Trust – averaged a DPU of 2.72 Singapore cents, up 0.8% YoY. Ascendas REIT reported the highest DPU of 4.01 cents, while Mapletree Logistics Trust registered the highest YoY growth in DPU of 3.5%. 
	 
	
For the quarter, Ascendas REIT and Mapletree Logistics Trust had the highest aggregate leverage ratios of 37.2% and 36.8% respectively, while Mapletree Industrial Trust had the lowest gearing of 33.4%. Frasers Logistics &amp; Industrial Trust had the highest interest coverage ratio of 7.3x in the quarter, followed by Mapletree Industrial Trust at 6.6x. 
	 
	In the YTD, SGX’s four largest industrial trusts averaged a total return of 23.4%. The best performers among the four were Mapletree Logistics Trust and Mapletree Industrial Trust, with YTD total returns of 29.0% and 22.5% respectively.

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 the first six months of 2019, drawing net institutional inflows of S$396.3 million over the period.

Of the 35 REITs on SGX, 11 are engaged in the acquisition, development, ownership, management and operation of industrial properties, data centres and logistics clusters, spanning Singapore, Malaysia, Vietnam, Japan, South Korea, China, Hong Kong, Australia, US, UK, Germany, and the Netherlands. Among these 11 trusts, the four largest industrial trusts by market capitalisation are: Ascendas REIT, Mapletree Logistics Trust, Mapletree Industrial Trust and Frasers Logistics &amp; Industrial Trust. Over the last two weeks, these four largest industrial REITs have reported results for the three months ended 30 June 2019.

Earnings Highlights   For the three months ended 30 June 2019, the four trusts averaged a distribution per unit (DPU) of 2.72 Singapore cents, up an average 0.8% YoY.

Ascendas REIT reported the highest DPU of 4.01 Singapore cents among the four trusts, up 0.1% YoY, followed by Mapletree Industrial Trust with a DPU of 3.10 Singapore cents, up 3.3% YoY. Among the four REITs, Mapletree Logistics Trust registered the highest YoY growth in DPU of 3.5%, while Frasers Logistics &amp; Industrial Trust registered a YoY decline of 3.9% in DPU.

These trusts averaged a 16.6% YoY rise in net property income to S$58.3 million, while gross revenue gained an average 12.5% YoY to S$69.9 million.

On average, the four REITs had an aggregate leverage ratio of 35.7% as of the quarter ended 30 June 2019. This compares with an average of 35.9% in the year-ago period. Ascendas REIT and Mapletree Logistics Trust had the highest aggregate leverage ratios of 37.2% and 36.8% respectively, while Mapletree Industrial Trust had the lowest gearing of 33.4%. Interest cover for the four trusts averaged 6.0 times in the June quarter, unchanged from the year-ago period. Frasers Logistics &amp; Industrial Trust had the highest ICR of 7.3x in the quarter, followed by Mapletree Industrial Trust at 6.6x.

June Quarter Financial Performances




			Name
			
			
			Distribution Per Unit (SG cts)
			
			
			YoY Change (%)
			
			
			Net Property Income (S$M)
			
			
			YoY % change
			
			
			Gross Revenue (S$M)
			
			
			YoY Change (%)
			
		


			ASCENDAS REIT^
			
			
			4.01~
			
			
			0.1
			
			
			177.5
			
			
			11.5
			
			
			229.7
			
			
			6.1
			
		


			MAPLETREE LOGISTICS TRUST
			
			
			2.03
			
			
			3.5
			
			
			106,128
			
			
			18.2
			
			
			119,811
			
			
			13.6
			
		


			MAPLETREE INDUSTRIAL TRUST
			
			
			3.10
			
			
			3.3
			
			
			77,919
			
			
			12.2
			
			
			99,575
			
			
			8.8
			
		


			FRASERS LOGISTICS &amp; INDUSTRIAL TRUST
			
			
			1.73
			
			
			-3.9
			
			
			48,882*
			
			
			24.4
			
			
			59,952
			
			
			21.6
			
		


			Average
			
			
			2.72
			
			
			0.8
			
			
			58,277
			
			
			16.6
			
			
			69,892
			
			
			12.5
			
		

 




			Name
			
			
			Aggregate Leverage Ratio (%) as at 30 June 2019
			
			
			Aggregate Leverage Ratio (%) as at 30 June 2018
			
			
			Interest Coverage Ratio (x) as at 30 June 2019
			
			
			Interest Coverage Ratio (x) as at 30 June 2018
			
		


			ASCENDAS REIT
			
			
			37.2
			
			
			35.7
			
			
			5.0
			
			
			5.6
			
		


			MAPLETREE LOGISTICS TRUST
			
			
			36.8
			
			
			36.4
			
			
			4.9
			
			
			5.2
			
		


			MAPLETREE INDUSTRIAL TRUST
			
			
			33.4
			
			
			35.0
			
			
			6.6
			
			
			6.9
			
		


			FRASERS LOGISTICS &amp; INDUSTRIAL TRUST
			
			
			35.4
			
			
			36.3
			
			
			7.3
			
			
			6.4
			
		


			Average
			
			
			35.7
			
			
			35.9
			
			
			6.0
			
			
			6.0
			
		

Source: Company data 
*adjusted 
^data for 1Q FY2019; FY2019 covers 1 Apr 2019 to 31 Dec 2019, after FY end was changed from 31 March to 31 December ~includes capital distributions

Outlook  
Both Mapletree Logistics Trust and Mapletree Industrial Trust cited increased caution in the domestic industrial property market as global economic growth softened, and trading and manufacturing activity in the first half of the year decelerated in tandem with the ongoing US-Sino trade tensions.

“In MLT’s markets, overall leasing demand for warehouse space has been relatively resilient to-date. However, customers have become more cautious on renewals and capacity expansion,” Mapletree Logistics noted in its 22 July 2019 results statement.

Down under in Australia, industrial take-up levels remain robust, driven by strong population growth, public infrastructure spending and the rise of e-commerce, Frasers Logistics &amp; Industrial Trust said in its 26 July results statement. Vacancy remains at five-year lows across the major industrial markets of Sydney, Melbourne and Brisbane, while prime face rents have posted steady YoY growth of 2% to 3%, the trust added.

The outlook also remains bright in Europe – take-up levels for logistics and industrial properties of above 5,000 square metres for Germany and the Netherlands remain high, Frasers noted.

YTD Performances

In the YTD, SGX’s four largest industrial trusts averaged a total return of 23.4%, bringing their one-year and three year total returns to 22.4% and 15.6%. They also averaged a price-to-book ratio of 1.2 times and a dividend indicated yield of 5.6%. The best performers among the four were Mapletree Logistics Trust and Mapletree Industrial Trust, with YTD total returns of 29.0% and 22.5% respectively.

The table below details SGX’s four largest industrial REITs, sorted by market capitalisation.




			Name
			
			
			SGX Code
			
			
			Market Cap (S$M)
			
			
			Total Return YTD (%)
			
			
			Total Return 1Y (%)
			
			
			Total Return 3Y (%)
			
			
			PB (x)
			
			
			Div Ind Yld (%)
			
		


			ASCENDAS REIT
			
			
			A17U
			
			
			9,494
			
			
			21.9
			
			
			18.3
			
			
			13.0
			
			
			1.2
			
			
			5.3
			
		


			MAPLETREE LOGISTICS TRUST
			
			
			M44U
			
			
			5,670
			
			
			29.0
			
			
			30.0
			
			
			21.5
			
			
			1.0
			
			
			5.2
			
		


			MAPLETREE INDUSTRIAL TRUST
			
			
			ME8U
			
			
			4,594
			
			
			22.5
			
			
			19.4
			
			
			14.8
			
			
			1.3
			
			
			5.4
			
		


			FRASERS LOGISTICS &amp; INDUSTRIAL TRUST
			
			
			BUOU
			
			
			2,432
			
			
			20.1
			
			
			21.9
			
			
			13.2
			
			
			1.2
			
			
			6.5
			
		


			Average
			
			
			 
			
			
			 
			
			
			23.4
			
			
			22.4
			
			
			15.6
			
			
			1.2
			
			
			5.6
			
		

Source: Bloomberg &amp; StockFacts (data as of 29 July 2019)



June Quarter Earnings of SGX’s Largest Industrial REITs





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    

<!DOCTYPE html PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN" "http://www.w3.org/TR/REC-html40/loose.dtd">
<html><body>
<ul>
<li>
SGX lists 34 REITs, seven stapled trusts and three property trusts with a combined market cap of over S$100 billion. Of the 34 REITs, 10 report revenues to China, and have a combined market cap of nearly S$20 billion. 
	 </li>
	<li>
In Jan-May 2019, Singapore REITs garnered net institutional inflows of S$173.2 million, averaging a monthly return of 2.7% and YTD return of 13.6%. It was also the second top net buy sector in May. 
	 </li>
	<li>These 10 China-related REITs averaged a total return of +15.7% in the YTD. Among them, the five best performers were: Sasseur REIT (+29.2%), Mapletree Logistics Trust (+24.9%), Mapletree North Asia Commercial Trust (+22.9%), Ascott Residence Trust (+20.7%) and CapitaLand Retail China Trust (+17.1%).</li>
</ul>
Singapore Exchange lists 34 REITs, seven stapled trusts and three property trusts with a combined market cap of over S$100 billion. Two stapled trusts recently listed on SGX – ARA US Hospitality Trust on 9 May, and Eagle Hospitality Trust on 24 May.

REIT popularity in Singapore is exemplified in multiple ways – they comprise one-tenth of Straits Times Index (STI) constituents, all of the STI Reserve List stocks, approximately one-tenth of the total market capitalisation of stocks listed on SGX, and a quarter of the top 20 stocks by turnover on a day-to-day basis.

In the first five months of 2019, Singapore REITs garnered net institutional inflows of S$173.2 million, and averaged a monthly return of 2.7%. It was also the second top net buy sector in May.
<figure>
 <img src="https://api2.sgx.com/sites/default/files/2019-06/Institutional%20Flows%20for%20S-REITs%20%28S%24M%29_8.JPG" alt="Institutional Flows for S-REITs">
 </figure>
 <div class="content-caption">Institutional Flows for S-REITs</div>
<figure>
 <img src="https://api2.sgx.com/sites/default/files/2019-06/Total%20Returns%20of%20S-REIT%20Sector_0.png" alt="Total Returns of S-REIT Sector">
 </figure>
 <div class="content-caption">Total Returns of S-REIT Sector</div>
Source: Bloomberg

Of the 34 REITs on SGX, 10 report revenues to China, and they have a combined market capitalisation of nearly S$20 billion. These 10 China-related  trusts averaged a total return of +15.7% in the 2019 year-to-date, bringing their one-year and three-year total returns to +10.9% and +24.5% respectively. They also averaged a 12-month dividend indicated yield of 6.7% and a price-to-book ratio of 0.8.

In the YTD, the five best-performing REITs with China revenues were: Sasseur REIT (+29.2%), Mapletree Logistics Trust (+24.9%), Mapletree North Asia Commercial Trust (+22.9%), Ascott Residence Trust (+20.7%) and CapitaLand Retail China Trust (+17.1%).

The tables below details the 10 REITs on SGX that report revenues to China, sorted by YTD total returns.

<table class="table table-striped"><tbody>
<tr>
<td>
			Name
			</td>
			<td>
			SGX Code
			</td>
			<td>
			Market Cap (S$M)
			</td>
			<td>
			Total Return YTD (%)
			</td>
			<td>
			Total Return 1Y (%)
			</td>
			<td>
			Total Return 3Y (%)
			</td>
		</tr>
<tr>
<td>
			SASSEUR REIT
			</td>
			<td>
			CRPU
			</td>
			<td>
			933
			</td>
			<td>
			29.2
			</td>
			<td>
			11.5
			</td>
			<td>
			NA
			</td>
		</tr>
<tr>
<td>
			MAPLETREE LOGISTICS TRUST
			</td>
			<td>
			M44U
			</td>
			<td>
			5,546
			</td>
			<td>
			24.9
			</td>
			<td>
			27.4
			</td>
			<td>
			88.6
			</td>
		</tr>
<tr>
<td>
			MAPLETREE NORTH ASIA COMMERCIAL TRUST
			</td>
			<td>
			RW0U
			</td>
			<td>
			4,327
			</td>
			<td>
			22.9
			</td>
			<td>
			23.0
			</td>
			<td>
			68.8
			</td>
		</tr>
<tr>
<td>
			ASCOTT RESIDENCE TRUST
			</td>
			<td>
			A68U
			</td>
			<td>
			2,740
			</td>
			<td>
			20.7
			</td>
			<td>
			20.8
			</td>
			<td>
			38.3
			</td>
		</tr>
<tr>
<td>
			CAPITALAND RETAIL CHINA TRUST
			</td>
			<td>
			AU8U
			</td>
			<td>
			1,538
			</td>
			<td>
			17.1
			</td>
			<td>
			4.5
			</td>
			<td>
			22.2
			</td>
		</tr>
<tr>
<td>
			EC WORLD REIT
			</td>
			<td>
			BWCU
			</td>
			<td>
			612
			</td>
			<td>
			16.1
			</td>
			<td>
			15.5
			</td>
			<td>
			NA
			</td>
		</tr>
<tr>
<td>
			STARHILL GLOBAL REIT
			</td>
			<td>
			P40U
			</td>
			<td>
			1,603
			</td>
			<td>
			11.4
			</td>
			<td>
			14.3
			</td>
			<td>
			15.3
			</td>
		</tr>
<tr>
<td>
			OUE COMMERCIAL REIT
			</td>
			<td>
			TS0U
			</td>
			<td>
			1,389
			</td>
			<td>
			8.2
			</td>
			<td>
			-16.6
			</td>
			<td>
			1.0
			</td>
		</tr>
<tr>
<td>
			DASIN RETAIL TRUST
			</td>
			<td>
			CEDU
			</td>
			<td>
			487
			</td>
			<td>
			4.8
			</td>
			<td>
			7.9
			</td>
			<td>
			NA
			</td>
		</tr>
<tr>
<td>
			BHG RETAIL REIT
			</td>
			<td>
			BMGU
			</td>
			<td>
			356
			</td>
			<td>
			2.0
			</td>
			<td>
			1.0
			</td>
			<td>
			11.2
			</td>
		</tr>
<tr>
<td>
			Average
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			15.7
			</td>
			<td>
			10.9
			</td>
			<td>
			24.5
			</td>
		</tr>
</tbody></table>
 

<table class="table table-striped"><tbody>
<tr>
<td>
			Name
			</td>
			<td>
			SGX Code
			</td>
			<td>
			Market Cap (S$M)
			</td>
			<td>
			12M Div Ind Yld (%)
			</td>
			<td>
			P/B (x)
			</td>
			<td>
			Greater China Revenues  (%)
			</td>
		</tr>
<tr>
<td>
			SASSEUR REIT
			</td>
			<td>
			CRPU
			</td>
			<td>
			933
			</td>
			<td>
			7.7
			</td>
			<td>
			0.8
			</td>
			<td>
			100
			</td>
		</tr>
<tr>
<td>
			MAPLETREE LOGISTICS TRUST
			</td>
			<td>
			M44U
			</td>
			<td>
			5,546
			</td>
			<td>
			5.2
			</td>
			<td>
			1.0
			</td>
			<td>
			30.5
			</td>
		</tr>
<tr>
<td>
			MAPLETREE NORTH ASIA COMMERCIAL TRUST
			</td>
			<td>
			RW0U
			</td>
			<td>
			4,327
			</td>
			<td>
			5.3
			</td>
			<td>
			0.8
			</td>
			<td>
			100
			</td>
		</tr>
<tr>
<td>
			ASCOTT RESIDENCE TRUST
			</td>
			<td>
			A68U
			</td>
			<td>
			2,740
			</td>
			<td>
			5.9
			</td>
			<td>
			0.8
			</td>
			<td>
			10.5
			</td>
		</tr>
<tr>
<td>
			CAPITALAND RETAIL CHINA TRUST
			</td>
			<td>
			AU8U
			</td>
			<td>
			1,538
			</td>
			<td>
			6.6
			</td>
			<td>
			1.0
			</td>
			<td>
			100
			</td>
		</tr>
<tr>
<td>
			EC WORLD REIT
			</td>
			<td>
			BWCU
			</td>
			<td>
			612
			</td>
			<td>
			8
			</td>
			<td>
			0.8
			</td>
			<td>
			100
			</td>
		</tr>
<tr>
<td>
			STARHILL GLOBAL REIT
			</td>
			<td>
			P40U
			</td>
			<td>
			1,603
			</td>
			<td>
			5.9
			</td>
			<td>
			0.8
			</td>
			<td>
			2.3
			</td>
		</tr>
<tr>
<td>
			OUE COMMERCIAL REIT
			</td>
			<td>
			TS0U
			</td>
			<td>
			1,389
			</td>
			<td>
			6.4
			</td>
			<td>
			0.6
			</td>
			<td>
			18.1
			</td>
		</tr>
<tr>
<td>
			DASIN RETAIL TRUST
			</td>
			<td>
			CEDU
			</td>
			<td>
			487
			</td>
			<td>
			8.2
			</td>
			<td>
			0.6
			</td>
			<td>
			100
			</td>
		</tr>
<tr>
<td>
			BHG RETAIL REIT
			</td>
			<td>
			BMGU
			</td>
			<td>
			356
			</td>
			<td>
			7.4
			</td>
			<td>
			0.9
			</td>
			<td>
			100
			</td>
		</tr>
<tr>
<td>
			Average
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			6.7
			</td>
			<td>
			0.8
			</td>
			<td>
			 
			</td>
		</tr>
</tbody></table>
Source: Bloomberg &amp; StockFacts (data as of 6 June 2019)

China’s Growth Outlook

China’s economy has slowed in the wake of the ongoing Sino-US trade dispute, with both industrial output and retail sales growth declining sharply. In April, industrial output growth eased to 5.4% from 8.5% in March, while retail sales rose by 7.2%, well below the 8.7% increase in March, and the lowest in more than a decade. The country’s manufacturing activity also contracted more than expected in May, with the official manufacturing Purchasing Managers’ Index (PMI) falling sharply to 49.4 from 50.1 in April.

While China registered a higher-than-expected 1.1% expansion in its May exports, following a 2.7% decline in April, many economists expect this to be a one-off phenomenon, driven by pre-existing orders and rushed shipments ahead of announced US tariff hikes. The outlook is for a further worsening in China’s trade performance the in coming months given the lack of clear direction for a resolution of bilateral trade tensions.

Last week, the International Monetary Fund (IMF) cut its growth forecasts for China’s gross domestic product to 6.2% from 6.3% in 2019, and to 6% from 6.1% in 2020, citing heightened uncertainty over the trade spat. 

Both countries have blamed each other for the breakdown in talks in May. So far, frictions have shown no sign of easing, with the office of the US Trade Representative preparing to review imposing 25% tariffs on the remaining approximately $300 billion in imports from China.

Last week, Chinese central bank governor Yi Gang said in a media interview that there is “tremendous” room to adjust monetary policy if the trade war deepens, and also signalled that he is not committed to defending the nation’s currency at a particular level.
</body></html>





SGX lists 34 REITs, seven stapled trusts and three property trusts with a combined market cap of over S$100 billion. Of the 34 REITs, 10 report revenues to China, and have a combined market cap of nearly S$20 billion.  
	 
	
In Jan-May 2019, Singapore REITs garnered net institutional inflows of S$173.2 million, averaging a monthly return of 2.7% and YTD return of 13.6%. It was also the second top net buy sector in May.  
	 
	These 10 China-related REITs averaged a total return of +15.7% in the YTD. Among them, the five best performers were: Sasseur REIT (+29.2%), Mapletree Logistics Trust (+24.9%), Mapletree North Asia Commercial Trust (+22.9%), Ascott Residence Trust (+20.7%) and CapitaLand Retail China Trust (+17.1%).

Singapore Exchange lists 34 REITs, seven stapled trusts and three property trusts with a combined market cap of over S$100 billion. Two stapled trusts recently listed on SGX – ARA US Hospitality Trust on 9 May, and Eagle Hospitality Trust on 24 May.

REIT popularity in Singapore is exemplified in multiple ways – they comprise one-tenth of Straits Times Index (STI) constituents, all of the STI Reserve List stocks, approximately one-tenth of the total market capitalisation of stocks listed on SGX, and a quarter of the top 20 stocks by turnover on a day-to-day basis.

In the first five months of 2019, Singapore REITs garnered net institutional inflows of S$173.2 million, and averaged a monthly return of 2.7%. It was also the second top net buy sector in May.

      
    
    Institutional Flows for S-REITs

      
    
    Total Returns of S-REIT Sector
Source: Bloomberg

Of the 34 REITs on SGX, 10 report revenues to China, and they have a combined market capitalisation of nearly S$20 billion. These 10 China-related  trusts averaged a total return of +15.7% in the 2019 year-to-date, bringing their one-year and three-year total returns to +10.9% and +24.5% respectively. They also averaged a 12-month dividend indicated yield of 6.7% and a price-to-book ratio of 0.8.

In the YTD, the five best-performing REITs with China revenues were: Sasseur REIT (+29.2%), Mapletree Logistics Trust (+24.9%), Mapletree North Asia Commercial Trust (+22.9%), Ascott Residence Trust (+20.7%) and CapitaLand Retail China Trust (+17.1%).

The tables below details the 10 REITs on SGX that report revenues to China, sorted by YTD total returns.




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


			SASSEUR REIT
			
			
			CRPU
			
			
			933
			
			
			29.2
			
			
			11.5
			
			
			NA
			
		


			MAPLETREE LOGISTICS TRUST
			
			
			M44U
			
			
			5,546
			
			
			24.9
			
			
			27.4
			
			
			88.6
			
		


			MAPLETREE NORTH ASIA COMMERCIAL TRUST
			
			
			RW0U
			
			
			4,327
			
			
			22.9
			
			
			23.0
			
			
			68.8
			
		


			ASCOTT RESIDENCE TRUST
			
			
			A68U
			
			
			2,740
			
			
			20.7
			
			
			20.8
			
			
			38.3
			
		


			CAPITALAND RETAIL CHINA TRUST
			
			
			AU8U
			
			
			1,538
			
			
			17.1
			
			
			4.5
			
			
			22.2
			
		


			EC WORLD REIT
			
			
			BWCU
			
			
			612
			
			
			16.1
			
			
			15.5
			
			
			NA
			
		


			STARHILL GLOBAL REIT
			
			
			P40U
			
			
			1,603
			
			
			11.4
			
			
			14.3
			
			
			15.3
			
		


			OUE COMMERCIAL REIT
			
			
			TS0U
			
			
			1,389
			
			
			8.2
			
			
			-16.6
			
			
			1.0
			
		


			DASIN RETAIL TRUST
			
			
			CEDU
			
			
			487
			
			
			4.8
			
			
			7.9
			
			
			NA
			
		


			BHG RETAIL REIT
			
			
			BMGU
			
			
			356
			
			
			2.0
			
			
			1.0
			
			
			11.2
			
		


			Average
			
			
			 
			
			
			 
			
			
			15.7
			
			
			10.9
			
			
			24.5
			
		

 




			Name
			
			
			SGX Code
			
			
			Market Cap (S$M)
			
			
			12M Div Ind Yld (%)
			
			
			P/B (x)
			
			
			Greater China Revenues  (%)
			
		


			SASSEUR REIT
			
			
			CRPU
			
			
			933
			
			
			7.7
			
			
			0.8
			
			
			100
			
		


			MAPLETREE LOGISTICS TRUST
			
			
			M44U
			
			
			5,546
			
			
			5.2
			
			
			1.0
			
			
			30.5
			
		


			MAPLETREE NORTH ASIA COMMERCIAL TRUST
			
			
			RW0U
			
			
			4,327
			
			
			5.3
			
			
			0.8
			
			
			100
			
		


			ASCOTT RESIDENCE TRUST
			
			
			A68U
			
			
			2,740
			
			
			5.9
			
			
			0.8
			
			
			10.5
			
		


			CAPITALAND RETAIL CHINA TRUST
			
			
			AU8U
			
			
			1,538
			
			
			6.6
			
			
			1.0
			
			
			100
			
		


			EC WORLD REIT
			
			
			BWCU
			
			
			612
			
			
			8
			
			
			0.8
			
			
			100
			
		


			STARHILL GLOBAL REIT
			
			
			P40U
			
			
			1,603
			
			
			5.9
			
			
			0.8
			
			
			2.3
			
		


			OUE COMMERCIAL REIT
			
			
			TS0U
			
			
			1,389
			
			
			6.4
			
			
			0.6
			
			
			18.1
			
		


			DASIN RETAIL TRUST
			
			
			CEDU
			
			
			487
			
			
			8.2
			
			
			0.6
			
			
			100
			
		


			BHG RETAIL REIT
			
			
			BMGU
			
			
			356
			
			
			7.4
			
			
			0.9
			
			
			100
			
		


			Average
			
			
			 
			
			
			 
			
			
			6.7
			
			
			0.8
			
			
			 
			
		

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

China’s Growth Outlook

China’s economy has slowed in the wake of the ongoing Sino-US trade dispute, with both industrial output and retail sales growth declining sharply. In April, industrial output growth eased to 5.4% from 8.5% in March, while retail sales rose by 7.2%, well below the 8.7% increase in March, and the lowest in more than a decade. The country’s manufacturing activity also contracted more than expected in May, with the official manufacturing Purchasing Managers’ Index (PMI) falling sharply to 49.4 from 50.1 in April.

While China registered a higher-than-expected 1.1% expansion in its May exports, following a 2.7% decline in April, many economists expect this to be a one-off phenomenon, driven by pre-existing orders and rushed shipments ahead of announced US tariff hikes. The outlook is for a further worsening in China’s trade performance the in coming months given the lack of clear direction for a resolution of bilateral trade tensions.

Last week, the International Monetary Fund (IMF) cut its growth forecasts for China’s gross domestic product to 6.2% from 6.3% in 2019, and to 6% from 6.1% in 2020, citing heightened uncertainty over the trade spat. 

Both countries have blamed each other for the breakdown in talks in May. So far, frictions have shown no sign of easing, with the office of the US Trade Representative preparing to review imposing 25% tariffs on the remaining approximately $300 billion in imports from China.

Last week, Chinese central bank governor Yi Gang said in a media interview that there is “tremendous” room to adjust monetary policy if the trade war deepens, and also signalled that he is not committed to defending the nation’s currency at a particular level.



SGX’s 10 China-Related S-REITs Returned 16% in YTD

<!DOCTYPE html PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN" "http://www.w3.org/TR/REC-html40/loose.dtd">
<html><body>
<ul>
<li>
SGX lists 34 REITs, seven stapled trusts and three property trusts with a combined market cap of about S$100 billion. Two stapled trusts were recently listed – ARA US Hospitality Trust on 9 May, and Eagle Hospitality Trust on 24 May. 
	 </li>
	<li>
The 10 largest REITs on SGX have a combined market capitalisation of nearly S$60 billion. Reflecting increased investor participation, the combined average daily turnover for the 10 largest REITs has gained 31.1% to S$161.2 million for the 2019 YTD, compared with S$122.9 million in calendar year 2018. 
	 </li>
	<li>The five biggest REITs that saw the largest percentage increases in average daily traded values for the YTD compared to calendar year 2018 were: Mapletree Logistics Trust (+86.1%), Mapletree Commercial Trust (+76.0%), Keppel REIT (+55.2%), Fortune REIT (+44.3%), and Mapletree North Asia Commercial Trust (+42.8%).</li>
</ul>
Singapore Exchange lists 34 REITs, seven stapled trusts and three property trusts with a combined market cap of about S$100 billion. Two stapled trusts recently listed on SGX – ARA US Hospitality Trust on 9 May, and Eagle Hospitality Trust on 24 May.

REIT popularity in Singapore is exemplified in multiple ways – they comprise one-tenth of Straits Times Index (STI) constituents, all of the STI Reserve List stocks, approximately one-tenth of the total market capitalisation of stocks listed on SGX, and a quarter of the top 20 stocks by turnover on a day-to-day basis.

The 10 largest REITs on SGX have a combined market capitalisation of nearly S$60 billion. Reflecting increased investor participation, the combined average daily turnover for the 10 largest REITs has gained 31.1% to S$161.2 million for the 2019 year-to-date, compared with S$122.9 million in calendar year 2018.

The five biggest REITs that saw the largest percentage increases in average daily traded values for the YTD compared to calendar year 2018 were: Mapletree Logistics Trust (+86.1%), Mapletree Commercial Trust (+76.0%), Keppel REIT (+55.2%), Fortune REIT (+44.3%), and Mapletree North Asia Commercial Trust (+42.8%). These five trusts averaged a 60.9% jump in daily turnover in YTD versus the 2018 year.

The table below details the average daily turnover of the 10 largest REITs on SGX for the YTD and 2018 calendar year, sorted by percentage change in average daily turnover over the two periods.

<table class="table table-striped"><tbody>
<tr>
<td>
			Name
			</td>
			<td>
			SGX Code
			</td>
			<td>
			Market Cap (S$B)
			</td>
			<td>
			Avg Daily Traded Value 2019 YTD (S$)
			</td>
			<td>
			Avg Daily Traded Value 2018 (S$)
			</td>
			<td>
			% Chg in Avg Daily Traded Value (YTD vs 2018)
			</td>
		</tr>
<tr>
<td>
			MAPLETREE LOGISTICS TRUST
			</td>
			<td>
			M44U
			</td>
			<td>
			5.3
			</td>
			<td>
			19,265,286
			</td>
			<td>
			10,354,265
			</td>
			<td>
			86.1
			</td>
		</tr>
<tr>
<td>
			MAPLETREE COMMERCIAL TRUST
			</td>
			<td>
			N2IU
			</td>
			<td>
			5.5
			</td>
			<td>
			15,313,805
			</td>
			<td>
			8,699,521
			</td>
			<td>
			76.0
			</td>
		</tr>
<tr>
<td>
			KEPPEL REIT
			</td>
			<td>
			K71U
			</td>
			<td>
			4.1
			</td>
			<td>
			8,914,900
			</td>
			<td>
			5,742,953
			</td>
			<td>
			55.2
			</td>
		</tr>
<tr>
<td>
			FORTUNE REIT#
			</td>
			<td>
			F25U
			</td>
			<td>
			3.7
			</td>
			<td>
			132,113
			</td>
			<td>
			91,524
			</td>
			<td>
			44.3
			</td>
		</tr>
<tr>
<td>
			MAPLETREE NORTH ASIA COMMERCIAL TRUST
			</td>
			<td>
			RW0U
			</td>
			<td>
			4.2
			</td>
			<td>
			10,016,494
			</td>
			<td>
			7,014,099
			</td>
			<td>
			42.8
			</td>
		</tr>
<tr>
<td>
			ASCENDAS REIT
			</td>
			<td>
			A17U
			</td>
			<td>
			9.1
			</td>
			<td>
			33,009,952
			</td>
			<td>
			25,738,647
			</td>
			<td>
			28.3
			</td>
		</tr>
<tr>
<td>
			CAPITALAND COMMERCIAL TRUST
			</td>
			<td>
			C61U
			</td>
			<td>
			7.2
			</td>
			<td>
			25,420,971
			</td>
			<td>
			20,751,999
			</td>
			<td>
			22.5
			</td>
		</tr>
<tr>
<td>
			MAPLETREE INDUSTRIAL TRUST
			</td>
			<td>
			ME8U
			</td>
			<td>
			4.2
			</td>
			<td>
			8,668,874
			</td>
			<td>
			7,214,549
			</td>
			<td>
			20.2
			</td>
		</tr>
<tr>
<td>
			SUNTEC REIT
			</td>
			<td>
			T82U
			</td>
			<td>
			5.1
			</td>
			<td>
			15,255,790
			</td>
			<td>
			13,590,841
			</td>
			<td>
			12.3
			</td>
		</tr>
<tr>
<td>
			CAPITALAND MALL TRUST
			</td>
			<td>
			C38U
			</td>
			<td>
			8.8
			</td>
			<td>
			25,161,949
			</td>
			<td>
			23,713,838
			</td>
			<td>
			6.1
			</td>
		</tr>
<tr>
<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			161,160,134
			</td>
			<td>
			122,912,237
			</td>
			<td>
			31.1
			</td>
		</tr>
</tbody></table>
Source: Bloomberg &amp; StockFacts (data as of 23 May 2019) 
#Note: Fortune REIT is traded in HKD with SGD equivalents shown in table

In the YTD, these 10 largest REITs have averaged total returns of 14.4%, bringing their one-year and three-year total returns to 18.7% and 53.2% respectively. The five best performers in the YTD were: Fortune REIT (+25.1%), Mapletree Logistics Trust (+19.2%), Mapletree Commercial Trust (+18.7%), Mapletree North Asia Commercial Trust (+18.4%) and Ascendas REIT (+17.1%).

The table below details the 10 largest REITs on SGX, sorted by YTD total return.

<table class="table table-striped"><tbody>
<tr>
<td>
			Name
			</td>
			<td>
			SGX Code
			</td>
			<td>
			Market Cap (S$B)
			</td>
			<td>
			Total Return YTD (%)
			</td>
			<td>
			Total Return 1Y (%)
			</td>
			<td>
			Total Return 3Y (%)
			</td>
			<td>
			T12M Div Ind Yld (%)
			</td>
			<td>
			P/B (x)
			</td>
		</tr>
<tr>
<td>
			FORTUNE REIT
			</td>
			<td>
			F25U
			</td>
			<td>
			3.7
			</td>
			<td>
			25.1
			</td>
			<td>
			24.6
			</td>
			<td>
			47.7
			</td>
			<td>
			4.8
			</td>
			<td>
			0.7
			</td>
		</tr>
<tr>
<td>
			MAPLETREE LOGISTICS TRUST
			</td>
			<td>
			M44U
			</td>
			<td>
			5.3
			</td>
			<td>
			19.2
			</td>
			<td>
			28.0
			</td>
			<td>
			80.9
			</td>
			<td>
			4.5
			</td>
			<td>
			1.0
			</td>
		</tr>
<tr>
<td>
			MAPLETREE COMMERCIAL TRUST
			</td>
			<td>
			N2IU
			</td>
			<td>
			5.5
			</td>
			<td>
			18.7
			</td>
			<td>
			27.5
			</td>
			<td>
			60.6
			</td>
			<td>
			4.8
			</td>
			<td>
			1.1
			</td>
		</tr>
<tr>
<td>
			MAPLETREE NORTH ASIA COMMERCIAL TRUST
			</td>
			<td>
			RW0U
			</td>
			<td>
			4.2
			</td>
			<td>
			18.4
			</td>
			<td>
			20.6
			</td>
			<td>
			62.6
			</td>
			<td>
			5.3
			</td>
			<td>
			0.8
			</td>
		</tr>
<tr>
<td>
			ASCENDAS REIT
			</td>
			<td>
			A17U
			</td>
			<td>
			9.1
			</td>
			<td>
			17.1
			</td>
			<td>
			18.0
			</td>
			<td>
			50.6
			</td>
			<td>
			5.5
			</td>
			<td>
			1.2
			</td>
		</tr>
<tr>
<td>
			MAPLETREE INDUSTRIAL TRUST
			</td>
			<td>
			ME8U
			</td>
			<td>
			4.2
			</td>
			<td>
			12.8
			</td>
			<td>
			13.3
			</td>
			<td>
			58.2
			</td>
			<td>
			5.8
			</td>
			<td>
			1.4
			</td>
		</tr>
<tr>
<td>
			CAPITALAND COMMERCIAL TRUST
			</td>
			<td>
			C61U
			</td>
			<td>
			7.2
			</td>
			<td>
			12.3
			</td>
			<td>
			16.8
			</td>
			<td>
			67.9
			</td>
			<td>
			4.5
			</td>
			<td>
			1.0
			</td>
		</tr>
<tr>
<td>
			CAPITALAND MALL TRUST
			</td>
			<td>
			C38U
			</td>
			<td>
			8.8
			</td>
			<td>
			7.7
			</td>
			<td>
			21.0
			</td>
			<td>
			35.6
			</td>
			<td>
			4.9
			</td>
			<td>
			1.1
			</td>
		</tr>
<tr>
<td>
			KEPPEL REIT
			</td>
			<td>
			K71U
			</td>
			<td>
			4.1
			</td>
			<td>
			7.7
			</td>
			<td>
			8.4
			</td>
			<td>
			36.2
			</td>
			<td>
			4.6
			</td>
			<td>
			0.8
			</td>
		</tr>
<tr>
<td>
			SUNTEC REIT
			</td>
			<td>
			T82U
			</td>
			<td>
			5.1
			</td>
			<td>
			4.9
			</td>
			<td>
			9.0
			</td>
			<td>
			32.1
			</td>
			<td>
			5.5
			</td>
			<td>
			0.9
			</td>
		</tr>
<tr>
<td>
			Average
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			14.4
			</td>
			<td>
			18.7
			</td>
			<td>
			53.2
			</td>
			<td>
			5.0
			</td>
			<td>
			1.0
			</td>
		</tr>
</tbody></table>
Source: Bloomberg &amp; StockFacts (data as of 23 May 2019) #Note: Fortune REIT is traded in HKD with SGD equivalents shown in table
</body></html>





SGX lists 34 REITs, seven stapled trusts and three property trusts with a combined market cap of about S$100 billion. Two stapled trusts were recently listed – ARA US Hospitality Trust on 9 May, and Eagle Hospitality Trust on 24 May.  
	 
	
The 10 largest REITs on SGX have a combined market capitalisation of nearly S$60 billion. Reflecting increased investor participation, the combined average daily turnover for the 10 largest REITs has gained 31.1% to S$161.2 million for the 2019 YTD, compared with S$122.9 million in calendar year 2018. 
	 
	The five biggest REITs that saw the largest percentage increases in average daily traded values for the YTD compared to calendar year 2018 were: Mapletree Logistics Trust (+86.1%), Mapletree Commercial Trust (+76.0%), Keppel REIT (+55.2%), Fortune REIT (+44.3%), and Mapletree North Asia Commercial Trust (+42.8%).

Singapore Exchange lists 34 REITs, seven stapled trusts and three property trusts with a combined market cap of about S$100 billion. Two stapled trusts recently listed on SGX – ARA US Hospitality Trust on 9 May, and Eagle Hospitality Trust on 24 May.

REIT popularity in Singapore is exemplified in multiple ways – they comprise one-tenth of Straits Times Index (STI) constituents, all of the STI Reserve List stocks, approximately one-tenth of the total market capitalisation of stocks listed on SGX, and a quarter of the top 20 stocks by turnover on a day-to-day basis.

The 10 largest REITs on SGX have a combined market capitalisation of nearly S$60 billion. Reflecting increased investor participation, the combined average daily turnover for the 10 largest REITs has gained 31.1% to S$161.2 million for the 2019 year-to-date, compared with S$122.9 million in calendar year 2018.

The five biggest REITs that saw the largest percentage increases in average daily traded values for the YTD compared to calendar year 2018 were: Mapletree Logistics Trust (+86.1%), Mapletree Commercial Trust (+76.0%), Keppel REIT (+55.2%), Fortune REIT (+44.3%), and Mapletree North Asia Commercial Trust (+42.8%). These five trusts averaged a 60.9% jump in daily turnover in YTD versus the 2018 year.

The table below details the average daily turnover of the 10 largest REITs on SGX for the YTD and 2018 calendar year, sorted by percentage change in average daily turnover over the two periods.




			Name
			
			
			SGX Code
			
			
			Market Cap (S$B)
			
			
			Avg Daily Traded Value 2019 YTD (S$)
			
			
			Avg Daily Traded Value 2018 (S$)
			
			
			% Chg in Avg Daily Traded Value (YTD vs 2018)
			
		


			MAPLETREE LOGISTICS TRUST
			
			
			M44U
			
			
			5.3
			
			
			19,265,286
			
			
			10,354,265
			
			
			86.1
			
		


			MAPLETREE COMMERCIAL TRUST
			
			
			N2IU
			
			
			5.5
			
			
			15,313,805
			
			
			8,699,521
			
			
			76.0
			
		


			KEPPEL REIT
			
			
			K71U
			
			
			4.1
			
			
			8,914,900
			
			
			5,742,953
			
			
			55.2
			
		


			FORTUNE REIT#
			
			
			F25U
			
			
			3.7
			
			
			132,113
			
			
			91,524
			
			
			44.3
			
		


			MAPLETREE NORTH ASIA COMMERCIAL TRUST
			
			
			RW0U
			
			
			4.2
			
			
			10,016,494
			
			
			7,014,099
			
			
			42.8
			
		


			ASCENDAS REIT
			
			
			A17U
			
			
			9.1
			
			
			33,009,952
			
			
			25,738,647
			
			
			28.3
			
		


			CAPITALAND COMMERCIAL TRUST
			
			
			C61U
			
			
			7.2
			
			
			25,420,971
			
			
			20,751,999
			
			
			22.5
			
		


			MAPLETREE INDUSTRIAL TRUST
			
			
			ME8U
			
			
			4.2
			
			
			8,668,874
			
			
			7,214,549
			
			
			20.2
			
		


			SUNTEC REIT
			
			
			T82U
			
			
			5.1
			
			
			15,255,790
			
			
			13,590,841
			
			
			12.3
			
		


			CAPITALAND MALL TRUST
			
			
			C38U
			
			
			8.8
			
			
			25,161,949
			
			
			23,713,838
			
			
			6.1
			
		


			 
			
			
			 
			
			
			 
			
			
			161,160,134
			
			
			122,912,237
			
			
			31.1
			
		

Source: Bloomberg &amp; StockFacts (data as of 23 May 2019) 
#Note: Fortune REIT is traded in HKD with SGD equivalents shown in table

In the YTD, these 10 largest REITs have averaged total returns of 14.4%, bringing their one-year and three-year total returns to 18.7% and 53.2% respectively. The five best performers in the YTD were: Fortune REIT (+25.1%), Mapletree Logistics Trust (+19.2%), Mapletree Commercial Trust (+18.7%), Mapletree North Asia Commercial Trust (+18.4%) and Ascendas REIT (+17.1%).

The table below details the 10 largest REITs on SGX, sorted by YTD total return.




			Name
			
			
			SGX Code
			
			
			Market Cap (S$B)
			
			
			Total Return YTD (%)
			
			
			Total Return 1Y (%)
			
			
			Total Return 3Y (%)
			
			
			T12M Div Ind Yld (%)
			
			
			P/B (x)
			
		


			FORTUNE REIT
			
			
			F25U
			
			
			3.7
			
			
			25.1
			
			
			24.6
			
			
			47.7
			
			
			4.8
			
			
			0.7
			
		


			MAPLETREE LOGISTICS TRUST
			
			
			M44U
			
			
			5.3
			
			
			19.2
			
			
			28.0
			
			
			80.9
			
			
			4.5
			
			
			1.0
			
		


			MAPLETREE COMMERCIAL TRUST
			
			
			N2IU
			
			
			5.5
			
			
			18.7
			
			
			27.5
			
			
			60.6
			
			
			4.8
			
			
			1.1
			
		


			MAPLETREE NORTH ASIA COMMERCIAL TRUST
			
			
			RW0U
			
			
			4.2
			
			
			18.4
			
			
			20.6
			
			
			62.6
			
			
			5.3
			
			
			0.8
			
		


			ASCENDAS REIT
			
			
			A17U
			
			
			9.1
			
			
			17.1
			
			
			18.0
			
			
			50.6
			
			
			5.5
			
			
			1.2
			
		


			MAPLETREE INDUSTRIAL TRUST
			
			
			ME8U
			
			
			4.2
			
			
			12.8
			
			
			13.3
			
			
			58.2
			
			
			5.8
			
			
			1.4
			
		


			CAPITALAND COMMERCIAL TRUST
			
			
			C61U
			
			
			7.2
			
			
			12.3
			
			
			16.8
			
			
			67.9
			
			
			4.5
			
			
			1.0
			
		


			CAPITALAND MALL TRUST
			
			
			C38U
			
			
			8.8
			
			
			7.7
			
			
			21.0
			
			
			35.6
			
			
			4.9
			
			
			1.1
			
		


			KEPPEL REIT
			
			
			K71U
			
			
			4.1
			
			
			7.7
			
			
			8.4
			
			
			36.2
			
			
			4.6
			
			
			0.8
			
		


			SUNTEC REIT
			
			
			T82U
			
			
			5.1
			
			
			4.9
			
			
			9.0
			
			
			32.1
			
			
			5.5
			
			
			0.9
			
		


			Average
			
			
			 
			
			
			 
			
			
			14.4
			
			
			18.7
			
			
			53.2
			
			
			5.0
			
			
			1.0
			
		

Source: Bloomberg &amp; StockFacts (data as of 23 May 2019) #Note: Fortune REIT is traded in HKD with SGD equivalents shown in table



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Singapore

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.

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Mapletree Logistics Trust (MLT SP)

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52-week Range

Market Cap (USDm)

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Dividend (Yield)

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