APAC IPOs & Placements, Aequitas Research

Clarence Chu

APAC 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 Bottom-Up

<a href="https://www.smartkarma.com/entities/suntec-reit" target="_blank" data-smartkarma-citation="entities:151:1" rel="noopener">Suntec REIT (SUN SP)</a> reported its 3Q21 business updates pre-market on 22 Oct 21. In this note, we will analyze its performance for the period, current capital management, and share our thoughts on its outlook.

Suntec REIT (SUN SP) reported its 3Q21 business updates pre-market on 22 Oct 21. In this note, we will analyze its performance for the period, current capital management, and share our thoughts on its outlook.

Suntec REIT 3Q21 - Higher Topline and Gearing, Only Difference Is the Former Was One-Off

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.

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Singapore continues to pursue a "Living with Covid-19" strategy, with anticipation to transit to a "new normal" in three to six months.

In the move to reopen borders and re-establish the country's status as a global hub, Singapore has extended its Vaccinated Travel Lane (VTL) scheme to eight more countries.

With more of such arrangements in discussion, the country's travel and hospitality sector is poised to benefit in the long run. 
There are five trusts in the S-REITs and Property Trusts sector with exposure to the hospitality segment in Singapore – Ascott Residence Trust, CDL Hospitality Trusts, Far East Hospitality Trust, Frasers Hospitality Trust and OUE Commercial REIT. 
These five trusts have averaged 6.0 per cent in total returns in the year to date.

Following the announcement to expand the VTL scheme on Oct 9, these five trusts advanced an average of 5.4 per cent in the four trading sessions from Oct 11 to 14. 
Ascott Residence Trust (ART), one of the largest hospitality trusts in Asia-Pacific, has a portfolio of 89 properties, including serviced residences, hotels, rental housing and student accommodation.

ART observed that the initial phase of recovery remained largely driven by the domestic and essential corporate travel segments, and expects the return of international demand to be more gradual.

OUE Commercial Reit (OUE C-Reit) owns seven properties across the commercial and hospitality segments in Singapore and Shanghai, including Mandarin Orchard Singapore and Crowne Plaza Changi Airport.

In its first half 2021 results announcement, it noted that its hospitality segment revenue remained flat year on year due to the minimum rent under the master lease arrangements of the hotel properties.

CDL Hospitality Trusts (CDLHT) owns 15 hotels globally, including six in Singapore, and two resorts comprising a total of 4,631 rooms as well as a retail mall.

CDLHT noted that its portfolio of six Singapore hotels continued to be impacted by continued border closures and absence of major meetings, incentives, conferences and exhibitions (MICE) events.

Several of these trusts have conducted rebranding and asset enhancement exercises in preparation for the eventual upturn of the sector.

This includes ART, which started the rejuvenation of Somerset Liang Court and lyf one-north in Singapore, and OUE C-Reit's renovation of Mandarin Orchard Singapore.

Far East Hospitality Trust, the only pure-play Singapore hospitality trust, has also committed to expedite its asset enhancements.

To create more resilient portfolios and stable income streams, ART and CDLHT have also announced the expansion of their investment mandates to include more asset types.

CDLHT expanded its principal investment strategy to include rental housing, co-living, student accommodation and senior housing in July 2021.

ART has announced three acquisitions in the United States' student accommodation segment since the start of the year.  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/hospitality-s-reits-taking-off-with-more-travel-lanes">read </a>the original version.
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    SREIT


Singapore continues to pursue a "Living with Covid-19" strategy, with anticipation to transit to a "new normal" in three to six months.

In the move to reopen borders and re-establish the country's status as a global hub, Singapore has extended its Vaccinated Travel Lane (VTL) scheme to eight more countries.

With more of such arrangements in discussion, the country's travel and hospitality sector is poised to benefit in the long run.  
There are five trusts in the S-REITs and Property Trusts sector with exposure to the hospitality segment in Singapore – Ascott Residence Trust, CDL Hospitality Trusts, Far East Hospitality Trust, Frasers Hospitality Trust and OUE Commercial REIT.   
These five trusts have averaged 6.0 per cent in total returns in the year to date.

Following the announcement to expand the VTL scheme on Oct 9, these five trusts advanced an average of 5.4 per cent in the four trading sessions from Oct 11 to 14.  
Ascott Residence Trust (ART), one of the largest hospitality trusts in Asia-Pacific, has a portfolio of 89 properties, including serviced residences, hotels, rental housing and student accommodation.

ART observed that the initial phase of recovery remained largely driven by the domestic and essential corporate travel segments, and expects the return of international demand to be more gradual.

OUE Commercial Reit (OUE C-Reit) owns seven properties across the commercial and hospitality segments in Singapore and Shanghai, including Mandarin Orchard Singapore and Crowne Plaza Changi Airport.

In its first half 2021 results announcement, it noted that its hospitality segment revenue remained flat year on year due to the minimum rent under the master lease arrangements of the hotel properties.

CDL Hospitality Trusts (CDLHT) owns 15 hotels globally, including six in Singapore, and two resorts comprising a total of 4,631 rooms as well as a retail mall.

CDLHT noted that its portfolio of six Singapore hotels continued to be impacted by continued border closures and absence of major meetings, incentives, conferences and exhibitions (MICE) events.

Several of these trusts have conducted rebranding and asset enhancement exercises in preparation for the eventual upturn of the sector.

This includes ART, which started the rejuvenation of Somerset Liang Court and lyf one-north in Singapore, and OUE C-Reit's renovation of Mandarin Orchard Singapore.

Far East Hospitality Trust, the only pure-play Singapore hospitality trust, has also committed to expedite its asset enhancements.

To create more resilient portfolios and stable income streams, ART and CDLHT have also announced the expansion of their investment mandates to include more asset types.

CDLHT expanded its principal investment strategy to include rental housing, co-living, student accommodation and senior housing in July 2021.

ART has announced three acquisitions in the United States' student accommodation segment since the start of the year.   REIT Watch is a weekly column on The Business Times, read the original version.



REIT Watch - Hospitality S-Reits taking off with more travel lanes

Research from SooChow CSSD Capital Markets (Asia), SCCM Asia Research

SCCM Asia Research

Research from SooChow CSSD Capital Markets (Asia)

Thematic (Sector/Industry)

<h2>Singapore</h2><h3><a href="https://www.smartkarma.com/entities/lendlease-group" target="_blank" data-smartkarma-citation="entities:11248" rel="noopener">Lendlease Group (LLC AU)</a> will begin construction on a large-scale Singapore vaccine facility in end-2021</h3>Lendlease is commencing construction on a large-scale, greenfield vaccine facility in late-2021. It did not disclose the identity of the client. The move comes as the Republic sees an increase in the number of Covid-19 vaccine-related investments, with three major pharmaceutical companies – BioNTech, Sanofi and Thermo Fisher Scientific – having plans to set up vaccine manufacturing facilities here. LLC has also been appointed to take on additional projects for existing Singapore clients, including expanding existing facilities to enhance their capabilities. The life sciences sector are one of LLC’s key focus areas where it is looking to apply its expertise across the integrated real estate value chain. In Mar21, LLC inked a partnership in the US with institutional investor Ivanhoe Cambridge to develop the 60 Guest Street project in Boston, a 320,000sqft life sciences hub.

SingaporeLendlease Group (LLC AU) will begin construction on a large-scale Singapore vaccine facility in end-2021Lendlease is commencing construction on a large-scale, greenfield vaccine facility in late-2021. It did not disclose the identity of the client. The move comes as the Republic sees an increase in the number of Covid-19 vaccine-related investments, with three major pharmaceutical companies – BioNTech, Sanofi and Thermo Fisher Scientific – having plans to set up vaccine manufacturing facilities here. LLC has also been appointed to take on additional projects for existing Singapore clients, including expanding existing facilities to enhance their capabilities. The life sciences sector are one of LLC’s key focus areas where it is looking to apply its expertise across the integrated real estate value chain. In Mar21, LLC inked a partnership in the US with institutional investor Ivanhoe Cambridge to develop the 60 Guest Street project in Boston, a 320,000sqft life sciences hub.

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The iEdge S-REIT Index ended the third quarter of 2021 relatively flat with 0.2 per cent total returns, in line with global REIT markets which declined towards the later half of the quarter due to steepening of yield curves. This brings the index year-to-date total returns to 4.5 per cent.

There are 20 trusts which outperformed the index in 3Q2021, including ten of the 11 trusts that entered the FTSE EPRA Nareit Global Developed Index following the most recent September review. The top five performing trusts, which were all recent index inclusions, were: OUE Commercial REIT (14.2 per cent), Starhill Global REIT (12.4 per cent), ARA LOGOS Logistics Trust (10.1 per cent), Far East Hospitality Trust (9.9 per cent), and ESR-REIT (9.3 per cent). These five trusts received net institutional inflows of S$192 million and net retail outflows of S$89 million this quarter.

In the year-to-date, the five best performing trusts where: ARA LOGOS Logistics Trust (60.2 per cent), Sabana REIT (34.3 per cent), Starhill Global REIT (32.6 per cent), Keppel Pacific Oak US REIT (28.4 per cent) and First REIT (27.8 per cent). These five trusts received net institutional inflows of S$132 million and net retail outflows of S$66 million in the year-to-date. 
Overall, institutional investors were net buyers of the S-Reits and property trusts sector in the third quarter, after being net sellers in the first half of 2021.

The sector received three consecutive months of net institutional inflows from July to September 2021, amounting to S$270 million.

Retail investors continue to be net buyers of the sector since the start of the year, with the exception of July, which saw net retail outflows of S$95 million. In the year to date, retail investors net buying activities in the sector totalled S$917 million. 
There are four trusts that received net inflows from both institutional and retail investors in the year-to-date: Frasers Logistics &amp; Commercial Trust (institutional: S$16.4 million; retail: S$8.5 million) , Far East Hospitality Trust (institutional: S$8.2 million; retail: S$1.7 million), Keppel Pacific Oak US REIT (institutional: S$5.5 million; retail: S$9.7 million) and Prime US REIT (institutional: S$0.5 million; retail: S$12.8 million).

Top three performing sub-sectors for the 3Q2021 period are Industrial REITs (3.3 per cent total returns), Specialised REITs (2.9 per cent), and Diversified REITs (2.0 per cent). Top three performing sub-sectors in the year-to-date are Healthcare REITs (25.4 per cent total returns), Industrial REITs (21.0 per cent), and Office REITs (11.8 per cent). 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/third-quarter-wrap-sees-institutional-investors-return-to-s-reits">read </a>the original version.
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    Rebound in flows


The iEdge S-REIT Index ended the third quarter of 2021 relatively flat with 0.2 per cent total returns, in line with global REIT markets which declined towards the later half of the quarter due to steepening of yield curves. This brings the index year-to-date total returns to 4.5 per cent.

There are 20 trusts which outperformed the index in 3Q2021, including ten of the 11 trusts that entered the FTSE EPRA Nareit Global Developed Index following the most recent September review. The top five performing trusts, which were all recent index inclusions, were: OUE Commercial REIT (14.2 per cent), Starhill Global REIT (12.4 per cent), ARA LOGOS Logistics Trust (10.1 per cent), Far East Hospitality Trust (9.9 per cent), and ESR-REIT (9.3 per cent). These five trusts received net institutional inflows of S$192 million and net retail outflows of S$89 million this quarter.

In the year-to-date, the five best performing trusts where: ARA LOGOS Logistics Trust (60.2 per cent), Sabana REIT (34.3 per cent), Starhill Global REIT (32.6 per cent), Keppel Pacific Oak US REIT (28.4 per cent) and First REIT (27.8 per cent). These five trusts received net institutional inflows of S$132 million and net retail outflows of S$66 million in the year-to-date.  
Overall, institutional investors were net buyers of the S-Reits and property trusts sector in the third quarter, after being net sellers in the first half of 2021.

The sector received three consecutive months of net institutional inflows from July to September 2021, amounting to S$270 million.

Retail investors continue to be net buyers of the sector since the start of the year, with the exception of July, which saw net retail outflows of S$95 million. In the year to date, retail investors net buying activities in the sector totalled S$917 million.  
There are four trusts that received net inflows from both institutional and retail investors in the year-to-date: Frasers Logistics &amp; Commercial Trust (institutional: S$16.4 million; retail: S$8.5 million) , Far East Hospitality Trust (institutional: S$8.2 million; retail: S$1.7 million), Keppel Pacific Oak US REIT (institutional: S$5.5 million; retail: S$9.7 million) and Prime US REIT (institutional: S$0.5 million; retail: S$12.8 million).

Top three performing sub-sectors for the 3Q2021 period are Industrial REITs (3.3 per cent total returns), Specialised REITs (2.9 per cent), and Diversified REITs (2.0 per cent). Top three performing sub-sectors in the year-to-date are Healthcare REITs (25.4 per cent total returns), Industrial REITs (21.0 per cent), and Office REITs (11.8 per cent).  REIT Watch is a weekly column on The Business Times, read the original version.



REIT Watch - Third quarter wrap sees institutional investors return to S-Reits

Frencken, iFAST & First Resources Among Most Consistent Gainers in 3Q21

Singapore

OUE Commercial Real Estate Investment Trust (“OUE C-REIT”) is one of the largest diversified Singapore REITs (“S-REITs”) with total assets of S$6.0 billion as at 31 December 2022. With seven properties across the commercial and hospitality segments in Singapore and Shanghai, the property portfolio comprises more than 2.1 million square feet of prime office and retail space, and 1,643 upper upscale hotel rooms.

OUE C-REIT invests in income-producing real estate used primarily for commercial purposes (including real estate used primarily for office and/or retail purposes) in financial and business hubs, hospitality and/or hospitality-related purposes, as well as real estate-related assets.

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OUE Commercial REIT (OUECT SP)

Suntec REIT 3Q21 - Higher Topline and Gearing, Only Difference Is the Former Was One-Off

Suntec REIT (SUN SP) reported its 3Q21 business updates pre-market on 22 Oct 21. In this note, we will analyze its performance, current capital...

Clarence Chu

REIT Watch - Hospitality S-Reits taking off with more travel lanes

Singapore continues to pursue a "Living with Covid-19" strategy, with anticipation to transit to a "new normal" in three to six...

Singapore Exchange Ltd (SGX)

ASEAN Builder's Scoop (8Oct21)

LLC begins SG vaccine facility in end-2021; OUECT S$540m green loan at 3.2%; HDB resale prices new record; Ascott expands Co-living biz; FPT...

SCCM Asia Research

REIT Watch - Third quarter wrap sees institutional investors return to S-Reits

The iEdge S-REIT Index ended the third quarter of 2021 relatively flat with 0.2 per cent total returns, in line with global...

Singapore Exchange Ltd (SGX)

Frencken, iFAST & First Resources Among Most Consistent Gainers in 3Q21

With 3Q21 to conclude on Thursday, this is the STI’s narrowest quarterly trading range since 3Q17, with a 6% difference between the quarterly...

Singapore Exchange Ltd (SGX)

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