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

Frasers Logistics & Commercial Trust / Equity Bottom-Up

<ul><li>S-REITs actively manage impact of rising rates; average ICR at 4.3 times Higher interest rates have typically been associated with higher borrowing costs and therefore lower distributions available for unitholders.</li><li>To hedge the impact of rising rates, S-REITs have been actively managing interest rate exposures.</li></ul>

S-REITs actively manage impact of rising rates; average ICR at 4.3 times Higher interest rates have typically been associated with higher borrowing costs and therefore lower distributions available for unitholders.To hedge the impact of rising rates, S-REITs have been actively managing interest rate exposures.

REIT Watch - S-REITs actively manage impact of rising rates; average ICR at 4.3 times

<ul><li>10 S-Reits with lowest gearing ratios A key metric for Reits is the gearing ratio, also known as aggregated leverage, which is a metric closely monitored by investors and often used to access a Reit’s financial leverage.</li><li>As of end-February this year, the 40 actively traded S-Reits and Property Trusts had an average gearing ratio of 37.7 per cent, below the regulatory limit of 50 per cent if the minimum interest coverage ratio (ICR) is at least 2.5 times, imposed by the Monetary Authority of Singapore (MAS).</li></ul>

10 S-Reits with lowest gearing ratios A key metric for Reits is the gearing ratio, also known as aggregated leverage, which is a metric closely monitored by investors and often used to access a Reit’s financial leverage.As of end-February this year, the 40 actively traded S-Reits and Property Trusts had an average gearing ratio of 37.7 per cent, below the regulatory limit of 50 per cent if the minimum interest coverage ratio (ICR) is at least 2.5 times, imposed by the Monetary Authority of Singapore (MAS).

REIT Watch – 10 S-REITs with lowest gearing ratios average 32% gearing

China Yuanbang Property Holdings / Equity Bottom-Up

<ul><li>Following a 3 per cent growth in 2022, China’s gross domestic product (GDP) is expected to grow by 5.2 per cent in 2023, while also producing a quarter of the globe’s 2023 growth.</li><li>Zhongmin Baihui Retail Group noted on Feb 15 that it expects China’s economy to begin the process of recovery.</li><li>The CSOP CSI STAR and ChiNext 50 Index ETF tracks the CSI STAR & CHINEXT 50 Index which selects 50 constituents involved in emerging industries from the SSE STAR market and SZSE ChiNext.</li></ul>

Following a 3 per cent growth in 2022, China’s gross domestic product (GDP) is expected to grow by 5.2 per cent in 2023, while also producing a quarter of the globe’s 2023 growth.Zhongmin Baihui Retail Group noted on Feb 15 that it expects China’s economy to begin the process of recovery.The CSOP CSI STAR and ChiNext 50 Index ETF tracks the CSI STAR & CHINEXT 50 Index which selects 50 constituents involved in emerging industries from the SSE STAR market and SZSE ChiNext.

Cautious optimism for China's steady recovery

<ul><li>Increasing number of real estate plays among director acquisitions Overall, institutions were net buyers of Singapore stocks for the five sessions ending Oct 6, with more than S$110 million of net inflows, following the S$200 million of net inflows for the preceding five sessions.</li><li>On Sep 28, Yanlord Land Group Independent Non-Executive Director Hong Pian Tee acquired 100,000 shares at 97.0 cents per share.</li></ul>

Increasing number of real estate plays among director acquisitions Overall, institutions were net buyers of Singapore stocks for the five sessions ending Oct 6, with more than S$110 million of net inflows, following the S$200 million of net inflows for the preceding five sessions.On Sep 28, Yanlord Land Group Independent Non-Executive Director Hong Pian Tee acquired 100,000 shares at 97.0 cents per share.

Increasing Number of Real Estate Plays Among Director Acquisitions 

<ul><li>On average, S-Reits have maintained an average gearing ratio of 36.8 per cent, based on latest company filings which were extracted in mid-August 2022.</li><li>The 5 S-Reits with the lowest gearing ratios reported are Digital Core Reit, Sasseur Reit, Frasers Logistics & Commercial Trust, SPH Reit, and IReit Global.</li><li>Gearing ratio, also known as aggregated leverage, is the ratio of a Reit’s total debt to its total assets.</li></ul>

On average, S-Reits have maintained an average gearing ratio of 36.8 per cent, based on latest company filings which were extracted in mid-August 2022.The 5 S-Reits with the lowest gearing ratios reported are Digital Core Reit, Sasseur Reit, Frasers Logistics & Commercial Trust, SPH Reit, and IReit Global.Gearing ratio, also known as aggregated leverage, is the ratio of a Reit’s total debt to its total assets.

REIT Watch - Five S-Reits with the lowest gearing ratios

Singapore

Lendlease Global Commercial REIT operates as a real estate investment trust. The Company invests in diversified portfolio of real estate assets. Lendlease Global Commercial REIT serves customers worldwide.

Lendlease Global Commercial REIT (LREIT SP)

Frasers Hospitality Trust operates as a real estate investment trust. The Trust owns, operates and invests in hotels and serviced residences.

Yanlord Land Group Ltd is a real estate development company. The Company develops high-end residential property projects in the Peoples Republic of China.

Bukit Sembawang Estates Limited, through its subsidiaries, operates in property development, property mortgage financing, and the holding of properties and investments. The Company provides residential property development throughout Singapore.

Eagle Hospitality Trust is a hospitality stapled group; owns 18 hotels across the U.S..

AIMS APAC REIT is a real estate investment trust. The Trust's principal investment objective is owning and investing in a diversified portfolio of income-producing industrial real estate assets throughout Asia Pacific, including warehousing and logistics, manufacturing, business parks and hi-tech spaces.

Sinarmas Land Ltd. invests in, develops and manages real estate.  The Company owns commercial buildings, hotels and resorts in China, Indonesia, Malaysia and Singapore.

Starhill Global REIT is a real estate investment trust.  The trust invests in retail and office buildings in Singapore and overseas.

Wing Tai Holdings Limited is an investment holding company whose subsidiaries invest in and develop properties, manufacture woven labels, and trade garments and architectural products and accessories.  The Company also provides management services and operates restaurants.

Hong Fok Corporation Limited is an investment holding company whose principal activities consist of property investment, property development, property management, and investment trading.

CBL & Associates Properties, Inc. is a self managed and self administered real estate investment trust. The Company owns regional shopping malls and community shopping centers in the United States.

Immobiliare Grande Distribuzione SIIQ SpA (known as IGD SIIQ) invests in and operates Italian commercial real estate. The Company owns shopping malls and supermarkets.

Dexus Convenience Retail REIT operates as a real estate investment trust. The Company invests in service stations and convenience retail stores. Dexus Convenience serves customers in Australia.

The Necessity Retail REIT, Inc. operates as a publicly traded real estate investment. The Company focuses on acquiring and managing portfolio of primarily service-oriented and traditional retail, as well as distribution commercial real estate properties in the United States.

Hektar Real Estate Investment Trust acquires and invests in income producing real estate in Malaysia.

Hektar Real Estate Investment Trust (HEKT MK)

Hui Xian Real Estate Investment Trust is a real estate investment trust. The trust's sole real estate investment interest at the time of its listing is its investment interest in the Oriental Plaza in Beijing.

MBK Public Company Limited operates property business.  The Company owns Mah Boon Krong Center building complex located in downtown Bangkok.  The complex consists of shopping malls, an office building and the Patumwan Princess Hotel. Through its subsidiaries, the Company mills and distributes rice, other grain products and operates power generation and distribution business.

PT MNC LAND Tbk engages in the development of integrated resorts, commercial properties, and property services. The Company owns and operates a full range of commercial properties in Jakarta, Surabaya and Bali. MNC LAND's integrated resorts include Lido Lake Resort in West Java, Bali Nirwana Resort in Bali, and Mandalika Eco-Tourism Resort in West Nusa Tenggara.

Keihanshin Building Co., Ltd. leases office buildings, computer and telecommunication equipped buildings, off-track-betting, and other commercial facilities.  The Company also provides building management services and undertakes construction works.

Suzhou New District Hi-Tech Industrial Co., Ltd. develops residential buildings and constructs utility, transportation, and communication facilities for Suzhou Hi-Tech Industrial Development Zone.  The Company also provides renovation and warehousing services and invests in other businesses.

Suzhou New District Hi Tech Ind Co. (600736 CH)

Sasseur Real Estate Investment Trust (“Sasseur REIT”) is the first outlet REIT listed in Asia. Sasseur REIT’s property portfolio comprises four outlets with an estimated appraised value of RMB 8.5 billion and net lettable area of 310,241 square metres. The outlets are strategically located in the high-growth cities of Chongqing, Hefei and Kunming in China and well-positioned to ride on the growth of the rising spending power of the Chinese middle class.

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Sasseur REIT (SASSR SP)

REIT Watch - S-REITs actively manage impact of rising rates; average ICR at 4.3 times

S-REITs actively manage impact of rising rates; average ICR at 4.3 times Higher interest rates have typically been associated with higher...

Singapore Exchange Ltd (SGX)

REIT Watch – 10 S-REITs with lowest gearing ratios average 32% gearing

10 S-Reits with lowest gearing ratios A key metric for Reits is the gearing ratio, also known as aggregated leverage, which is a metric closely...

Singapore Exchange Ltd (SGX)

Cautious optimism for China's steady recovery

Following a 3 per cent growth in 2022, China’s gross domestic product (GDP) is expected to grow by 5.2 per cent in 2023, while also producing a...

Singapore Exchange Ltd (SGX)

Increasing Number of Real Estate Plays Among Director Acquisitions

Increasing number of real estate plays among director acquisitions Overall, institutions were net buyers of Singapore stocks for the five sessions...

Singapore Exchange Ltd (SGX)

REIT Watch - Five S-Reits with the lowest gearing ratios

On average, S-Reits have maintained an average gearing ratio of 36.8 per cent, based on latest company filings which were extracted in mid-August...

Singapore Exchange Ltd (SGX)

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