Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

Capitaland Integrated Commercial Trust / Equity Capital Markets

<ul>
<li>CapitaLand Integrated Commercial Trust (CICT) aims to raise around US$150m to partly fund the recently announced acquisition of two Australian assets.</li>
<li>Although, at the time of the acquisition the company had stated that it aims to finance the acquisition using debt and divestment proceeds.</li>
<li>In this note, we will talk about the deal dynamics and run the deal through our ECM framework.</li>
</ul>


CapitaLand Integrated Commercial Trust (CICT) aims to raise around US$150m to partly fund the recently announced acquisition of two Australian assets.
Although, at the time of the acquisition the company had stated that it aims to finance the acquisition using debt and divestment proceeds.
In this note, we will talk about the deal dynamics and run the deal through our ECM framework.


CICT Placement - Surprise About Turn on Acquisition Funding

Digital Core REIT / Equity Capital Markets

<ul>
<li>Digital Core REIT (DCREIT), a data center REIT, aims to raise up to US$600m in its Singapore IPO.</li>
<li>The company is sponsored by Digital Realty, one of the largest REITs in the US, and over 60% of the deal is already spoken for by cornerstone investors.</li>
<li>In this note, we will talk about Peer Comp, Valuation and Other Deal Dynamics.</li>
</ul>


Digital Core REIT (DCREIT), a data center REIT, aims to raise up to US$600m in its Singapore IPO.
The company is sponsored by Digital Realty, one of the largest REITs in the US, and over 60% of the deal is already spoken for by cornerstone investors.
In this note, we will talk about Peer Comp, Valuation and Other Deal Dynamics.


Digital Core REIT IPO - Peer Comp, Valuation and Other Deal Dynamics

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

<figure>
 <img src='https://api2.sgx.com/sites/default/files/2021-11/Capture_3.PNG' alt='Greener REIT' />
 </figure>
 <div class='content-caption'>Greener REIT</div>
<!DOCTYPE html PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN" "http://www.w3.org/TR/REC-html40/loose.dtd">
<html><body>
According to the UN Environmental Programme, the real estate sector has one of the largest carbon footprints, contributing to 30 per cent of global annual greenhouse gas (GHG) emissions and consumes around 40 per cent of the world's energy.

This explains the increasing focus on climate change issues and responsible investment practices.

SGX and UOB Asset Management have jointly launched the iEdge-UOB Apac Yield Focus Green Reit Index, an index which tracks the performance of 50 higher-yielding Reits in Asia-Pacific (Apac) with positive environmental attributes based on the GRESB assessment framework. 
GRESB is the global leader for ESG research of real assets, covering more than 1,500 property companies, Reits, funds and developers with US$5.7 trillion in assets under management. 
Out of the 50 constituents, nine are S-REITs &amp; Property Trusts: CapitaLand Integrated Commercial Trust, Mapletree Logistics Trust, Mapletree Industrial Trust, Mapletree Commercial Trust, Frasers Logistics &amp; Commercial Trust, Suntec REIT, Keppel REIT, Mapletree North Asia Commercial Trust, and Ascendas India Trust. 
The iEdge-UOB Apac Yield Focus Green Reit Index is the first index globally to go beyond using the overall GRESB score and focus on four key environmental indicators to determine the environmental attributes - energy consumption, water consumption, GHG emissions, and green building certifications. 
The index is expected to be fully investable and tradable, as Apac Reits are included into the index based on minimum size of US$1 billion in free-float market capitalisation, liquidity requirements of at least US$400,000 in median daily average traded value, dividend yield-ranking within market cap quartiles, and a minimum GRESB public disclosure score among others.

After which a green tilt is applied using the GRESB Real Estate Assessment environmental scores.

Reits that have more favourable environmental attributes will be rewarded with a higher weighting factor, compared to Reits that have relative lower environmental scores.

By applying the green portfolio tilt, the iEdge-UOB Apac Yield Focus Green Reit Index constituents emit 7 per cent less GHG, consume 12 per cent less water and 9 per cent less energy than the non-green market-cap weighted version of the index.

Green building certification by floor area is also 13 per cent for certifications obtained at the time of design, construction or renovation, and 10 per cent for operational green building certifications.

All constituent weights are capped at 7 per cent and overall country exposure capped at 40 per cent.

Japan makes up 40 per cent of the index, while Australia, Singapore and Hong Kong are at 36 per cent, 16 per cent and 8 per cent respectively.

The index has a trailing 12-month dividend yield of 4.25 per cent.

The UOB Apac Green Reit ETF, which has filed a prospectus with an expected listing on Nov 23, will track the iEdge-UOB Apac Yield Focus Green Reit Index.

The ETF has a target dividend distribution policy of up to 4 per cent of net asset value per annum on a quarterly basis.  REIT Watch is a weekly column on The Business Times,<a href="https://www.businesstimes.com.sg/companies-markets/retail-and-hospitality-sector-s-reits-outperform-in-october"> </a><a href="https://www.businesstimes.com.sg/companies-markets/nine-s-reits-in-yield-focus-index-based-on-positive-environmental-attributes">read</a><a href="https://www.businesstimes.com.sg/companies-markets/retail-and-hospitality-sector-s-reits-outperform-in-october"> </a>the original version.
</body></html>


      
    
    Greener REIT


According to the UN Environmental Programme, the real estate sector has one of the largest carbon footprints, contributing to 30 per cent of global annual greenhouse gas (GHG) emissions and consumes around 40 per cent of the world's energy.

This explains the increasing focus on climate change issues and responsible investment practices.

SGX and UOB Asset Management have jointly launched the iEdge-UOB Apac Yield Focus Green Reit Index, an index which tracks the performance of 50 higher-yielding Reits in Asia-Pacific (Apac) with positive environmental attributes based on the GRESB assessment framework.  
GRESB is the global leader for ESG research of real assets, covering more than 1,500 property companies, Reits, funds and developers with US$5.7 trillion in assets under management.  
Out of the 50 constituents, nine are S-REITs &amp; Property Trusts: CapitaLand Integrated Commercial Trust, Mapletree Logistics Trust, Mapletree Industrial Trust, Mapletree Commercial Trust, Frasers Logistics &amp; Commercial Trust, Suntec REIT, Keppel REIT, Mapletree North Asia Commercial Trust, and Ascendas India Trust.  
The iEdge-UOB Apac Yield Focus Green Reit Index is the first index globally to go beyond using the overall GRESB score and focus on four key environmental indicators to determine the environmental attributes - energy consumption, water consumption, GHG emissions, and green building certifications.  
The index is expected to be fully investable and tradable, as Apac Reits are included into the index based on minimum size of US$1 billion in free-float market capitalisation, liquidity requirements of at least US$400,000 in median daily average traded value, dividend yield-ranking within market cap quartiles, and a minimum GRESB public disclosure score among others.

After which a green tilt is applied using the GRESB Real Estate Assessment environmental scores.

Reits that have more favourable environmental attributes will be rewarded with a higher weighting factor, compared to Reits that have relative lower environmental scores.

By applying the green portfolio tilt, the iEdge-UOB Apac Yield Focus Green Reit Index constituents emit 7 per cent less GHG, consume 12 per cent less water and 9 per cent less energy than the non-green market-cap weighted version of the index.

Green building certification by floor area is also 13 per cent for certifications obtained at the time of design, construction or renovation, and 10 per cent for operational green building certifications.

All constituent weights are capped at 7 per cent and overall country exposure capped at 40 per cent.

Japan makes up 40 per cent of the index, while Australia, Singapore and Hong Kong are at 36 per cent, 16 per cent and 8 per cent respectively.

The index has a trailing 12-month dividend yield of 4.25 per cent.

The UOB Apac Green Reit ETF, which has filed a prospectus with an expected listing on Nov 23, will track the iEdge-UOB Apac Yield Focus Green Reit Index.

The ETF has a target dividend distribution policy of up to 4 per cent of net asset value per annum on a quarterly basis.   REIT Watch is a weekly column on The Business Times, read the original version.



REIT Watch - Nine S-Reits in Yield Focus index based on positive environmental attributes

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)

<h2>Singapore</h2><h3>SREITs results in a glance (see detailed spreadsheet and calendar attached)</h3><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/238/244/original/image_50824297521635443513931.png?1635443517" class="editor-image img-responsive" data-smartkarma-image-id="238244"></figure><h3><a href="https://www.smartkarma.com/entities/mapletree-commercial-trust" target="_blank" data-smartkarma-citation="entities:106" rel="noopener">Mapletree Commercial Trust (MCT SP)</a> 1H22 DPU +5.3% YoY; Reversions turning positive, VivoCity on track for a recovery play</h3><ul><li>1H22 revenue and NPI increased by 11.5% and 10.7% YoY, respectively, to S$243.7m (47.9% of BB est.) and S$189.9m (51.4% of BB est.), mainly due to lower rental rebates as well as compensation received from a pre-terminated lease at mTower.</li></ul>

SingaporeSREITs results in a glance (see detailed spreadsheet and calendar attached)Mapletree Commercial Trust (MCT SP) 1H22 DPU +5.3% YoY; Reversions turning positive, VivoCity on track for a recovery play1H22 revenue and NPI increased by 11.5% and 10.7% YoY, respectively, to S$243.7m (47.9% of BB est.) and S$189.9m (51.4% of BB est.), mainly due to lower rental rebates as well as compensation received from a pre-terminated lease at mTower.

<figure>
 <img src='https://api2.sgx.com/sites/default/files/2021-10/Capture_6.PNG' alt='Retail SREIT' />
 </figure>
 <div class='content-caption'>Retail SREIT</div>
<!DOCTYPE html PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN" "http://www.w3.org/TR/REC-html40/loose.dtd">
<html><body>
At over 80 per cent of the population, Singapore has one of the highest Covid-19 vaccination rates globally. Booster shots are also underway as part of efforts towards a progressive full reopening and strategy to treat Covid-19 as endemic.

Sectors such as retail, travel and hospitality remain poised to benefit in the long run as borders reopen progressively and social activities return.

Singapore is working on establishing a vaccinated travel lane with several countries including some European countries, the United States and South Korea. 
In the near term and somewhat physically closer to our homes, suburban malls have demonstrated relevance and resilience amid extended restrictions and Work-From-Home (WFH) trends with exposure to essential trades such as supermarkets and food and beverage outlets. 
There are five S-REITs with exposure to suburban-focused retail malls in Singapore – Frasers Centrepoint Trust, CapitaLand Integrated Commercial Trust, SPH REIT, Mapletree Commercial Trust, and Lendlease Global Commercial REIT through its 31.8 per cent indirect interest in JEM. These five have averaged 7.6 per cent in total returns in the year-to-date. 
These five have averaged 7.6 per cent in total returns in the year to date (YTD). 
Suburban malls are located near residential neighbourhoods and provide residents with necessities and convenience.

SPH Reit, which owns a portfolio of retail malls in Singapore and Australia, recently reported full-year fiscal year (FY) 2021 results.

Gross revenue increased 14.8 per cent year on year to S$277.2 million and net property income increased 11.4 per cent year on year to S$202.6 million.

Distribution per unit (DPU) for Q4 FY 2021 was 1.58 cents, bringing its full year DPU to 5.40 cents which is 98 per cent higher year on year and 3.6 per cent away from FY 2019's DPU (pre-Covid).

Despite softer leasing sentiments across its portfolio, SPH Reit noted that the defensive nature of suburban malls has supported tenant sales at The Clementi Mall, bringing it to pre-Covid levels and in line with resilient suburban malls' performances.

The Clementi Mall observed a 33 per cent decrease in footfall but a 5 per cent increase in tenant sales, mitigated by its close proximity to residential homes.

CapitaLand Integrated Commercial Trust has a portfolio of suburban retail malls including Bedok Mall, Junction 8, Tampines Mall, and Westgate.

In the Reit's earlier first half (H1) 2021 results announcement, it noted that retail tenant sales continued to outpace shopper traffic, with both improving more than 104 per cent year on year on a low base effect.

H1 2021 tenant sales have recovered to 86.3 per cent against the 2019 average while shopper traffic was at 61.3 per cent against 2019.

Frasers Centrepoint Trust has a portfolio of nine Singapore suburban retail malls.

In its earlier business update, the Reit's tenant sales had recovered to near pre-Covid levels at end 2020 and in early 2021, despite being impacted in the third quarter (Q3) 2021 from April to June due to the tightened control measures during Phase 2 (Heightened Alert).

Mapletree Commercial Trust's VivoCity mall also noted year-on-year improvements in shopper traffic and tenant sales in Q1 FY21/22 but recovery momentum was disrupted by re-tightened Covid-19 measures.

Aside from SPH Reit, the rest of the S-Reits will be reporting quarterly results and business updates over the next few weeks.  REIT Watch is a weekly column on The Business Times,<a href="https://www.businesstimes.com.sg/companies-markets/china-focused-s-reits-resilient-amid-onshore-property-focus"> </a><a href="https://www.businesstimes.com.sg/companies-markets/suburban-focused-retail-s-reits-average-76-in-total-returns-ytd">read </a>the original version.
</body></html>


      
    
    Retail SREIT


At over 80 per cent of the population, Singapore has one of the highest Covid-19 vaccination rates globally. Booster shots are also underway as part of efforts towards a progressive full reopening and strategy to treat Covid-19 as endemic.

Sectors such as retail, travel and hospitality remain poised to benefit in the long run as borders reopen progressively and social activities return.

Singapore is working on establishing a vaccinated travel lane with several countries including some European countries, the United States and South Korea.  
In the near term and somewhat physically closer to our homes, suburban malls have demonstrated relevance and resilience amid extended restrictions and Work-From-Home (WFH) trends with exposure to essential trades such as supermarkets and food and beverage outlets.  
There are five S-REITs with exposure to suburban-focused retail malls in Singapore – Frasers Centrepoint Trust, CapitaLand Integrated Commercial Trust, SPH REIT, Mapletree Commercial Trust, and Lendlease Global Commercial REIT through its 31.8 per cent indirect interest in JEM. These five have averaged 7.6 per cent in total returns in the year-to-date.  
These five have averaged 7.6 per cent in total returns in the year to date (YTD).  
Suburban malls are located near residential neighbourhoods and provide residents with necessities and convenience.

SPH Reit, which owns a portfolio of retail malls in Singapore and Australia, recently reported full-year fiscal year (FY) 2021 results.

Gross revenue increased 14.8 per cent year on year to S$277.2 million and net property income increased 11.4 per cent year on year to S$202.6 million.

Distribution per unit (DPU) for Q4 FY 2021 was 1.58 cents, bringing its full year DPU to 5.40 cents which is 98 per cent higher year on year and 3.6 per cent away from FY 2019's DPU (pre-Covid).

Despite softer leasing sentiments across its portfolio, SPH Reit noted that the defensive nature of suburban malls has supported tenant sales at The Clementi Mall, bringing it to pre-Covid levels and in line with resilient suburban malls' performances.

The Clementi Mall observed a 33 per cent decrease in footfall but a 5 per cent increase in tenant sales, mitigated by its close proximity to residential homes.

CapitaLand Integrated Commercial Trust has a portfolio of suburban retail malls including Bedok Mall, Junction 8, Tampines Mall, and Westgate.

In the Reit's earlier first half (H1) 2021 results announcement, it noted that retail tenant sales continued to outpace shopper traffic, with both improving more than 104 per cent year on year on a low base effect.

H1 2021 tenant sales have recovered to 86.3 per cent against the 2019 average while shopper traffic was at 61.3 per cent against 2019.

Frasers Centrepoint Trust has a portfolio of nine Singapore suburban retail malls.

In its earlier business update, the Reit's tenant sales had recovered to near pre-Covid levels at end 2020 and in early 2021, despite being impacted in the third quarter (Q3) 2021 from April to June due to the tightened control measures during Phase 2 (Heightened Alert).

Mapletree Commercial Trust's VivoCity mall also noted year-on-year improvements in shopper traffic and tenant sales in Q1 FY21/22 but recovery momentum was disrupted by re-tightened Covid-19 measures.

Aside from SPH Reit, the rest of the S-Reits will be reporting quarterly results and business updates over the next few weeks.   REIT Watch is a weekly column on The Business Times, read the original version.



REIT Watch - Suburban-focused retail S-Reits average 7.6% in total returns YTD

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)

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

Mapletree Pan Asia Commercial Trust (MCT SP)

CICT Placement - Surprise About Turn on Acquisition Funding

CapitaLand Integrated Commercial Trust (CICT) aims to raise around US$150m to partly fund the recently announced acquisition of two Australian assets.

Sumeet Singh

Digital Core REIT IPO - Peer Comp, Valuation and Other Deal Dynamics

Digital Core REIT (DCREIT), a data center REIT, aims to raise up to US$600m in its Singapore IPO. In this note, we talk about peer comp, valuation...

Sumeet Singh

REIT Watch - Nine S-Reits in Yield Focus index based on positive environmental attributes

According to the UN Environmental Programme, the real estate sector has one of the largest carbon footprints, contributing to...

Singapore Exchange Ltd (SGX)

ASEAN Builder's Scoop (28Oct21)

MCT reversions turning positive; AIT declining occupancies; KORE robust double-digit reversions; UOL/SPLG JV won Watten Estate en-bloc; Phils...

SCCM Asia Research

REIT Watch - Suburban-focused retail S-Reits average 7.6% in total returns YTD

At over 80 per cent of the population, Singapore has one of the highest Covid-19 vaccination rates globally. Booster shots are...

Singapore Exchange Ltd (SGX)

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)