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

CDL Hospitality Trusts / Equity Bottom-Up

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<ul>
<li>
Airlines, Hospitality, and Leisure sectors led global stocks as daily new COVID cases globally stabilized. International flight bookings for ASEAN countries with easing border controls rose significantly in January ’22, with airlines expected to announce new schedules and building capacity to accommodate further ramp up, according to data from online travel company Skyscanner. 
	 </li>
	<li>
Closer to home, Changi Airport passenger volumes experienced upticks in the past three months (through Dec ’21). Dec ’21 volumes +121% M-o-M to 871k passengers as VTLs positively impacted travelers movement. 
	 </li>
	<li>As borders open, SGX stocks in Consumer, Hospitality, and Travel related sectors may see renewed investors’ focus. Outlook commentary from notable companies suggest cautiously optimistic views on uptick in international travel.</li>
</ul>
 

Green Shoots in International Travel as Air Tickets Bookings and Passenger Volumes Grow 
According to online travel company Skyscanner’s data, international flight bookings for ASEAN countries with relaxed border controls rose significantly in January. Countries such as Indonesia, Philippines, Singapore and Thailand saw return economy-class bookings from travelers in UK, U.S. and Germany rise 19-300% m-o-m in January, according to Skyscanner’s data. The firm expects airlines to announce new schedules and building capacity to facilitate the return of international travel at scale. Across the region, countries have also announced border reopening plans (see more below for more details). 
In Singapore, Changi Airport passenger movement data has also seen upticks in the past three months. Notably, December ’21 Changi Airport passenger volumes grew 120.5% M-o-M to 871k and built on the +54.9% M-o-M in November. While still c. 15.3% of pre-covid monthly levels of c. 5.7 million (average 2017-2019), implementation of vaccinated travel lane (VTL) locally had a positive impact. 
In the past week, Airlines, Hospitality and Leisure sectors have also led global stocks as daily new global confirmed COVID-19 cases continue to retreat from its peak in late January.
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<figure>
 <img src='https://api2.sgx.com/sites/default/files/2022-02/Capture%201_1.PNG' alt='Changi Airport' />
 </figure>
 <div class='content-caption'>Changi Airport</div>
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Source: Changi Airport, SGX Most Actively-Traded SGX Stocks with Operating Assets/Businesses Tied to Reopening Theme 
As border reopens, investors’ focus may shift to SGX-listed stocks which may potentially benefit from increased international travel. Apart Singapore Airlines (SIA) and SATS, the most actively traded stocks with operating assets/businesses tied to reopening theme come from sectors such as consumer discretionary (e.g. hotels, leisure, retail, F&amp;B) and REITs. 
Since end January ‘22, Singapore Airlines has gained 6.2%, Genting Singapore has gained 6.1%, CDL Hospitality Trusts has gained 8.0% which includes a divided distribution. Singapore Airlines has seen S$77 million of net institutional inflow this year, with a 6.4% price gain to S$5.34, following a 16.6% gain in 2021 on S$557 million of net institutional outflow. While Ascott Residence Trust has generated a 2.7% including a dividend distribution since 31 Jan, it has marginally outpaced CDL Hospitality Trust since completing the combination with Ascendas Hospitality Trust on 31 Dec 2019. Notable Commentary from last Earnings Reports 
Singapore Airlines (SIA): Saw recovery of international air travel in 1H FY21/22 with passenger traffic (measure in revenue passenger-kilometres) growing five-fold YoY and passenger capacity (available seat-kilometres) also up five-fold YoY to reach 32% of pre-COVID levels as of September ’21. Expecting passenger capacity to reach 43% of pre-COVID levels by December ’21. SATS: Air cargo has already exceeded pre-COVID levels with APAC travel to reach pre-COVID levels by 2024. Retaining deep domain capabilities to support potential rebound in travel from easing of border restrictions in the region. Mapletree Commercial Trust: Steady recovery for VivoCity in tandem with easing COVID-19 measures and strong festive spending, with tenant sales +3.7% YoY, almost reaching 90% of pre-COVID levels.

<table class="table table-striped"><tbody>
<tr>
<td>
			Stock Name 
			</td>
			<td>
			Code
			</td>
			<td>
			Mkt Cap S$M
			</td>
			<td>
			P/E
			</td>
			<td>
			P/B
			</td>
			<td>
			ROE %
			</td>
			<td>
			Div Yield (%)
			</td>
			<td>
			2022 YTD Total Return 

			%
			</td>
		</tr>
<tr>
<td>
			Thai Beverage
			</td>
			<td>
			Y92
			</td>
			<td>
			16,580
			</td>
			<td>
			16.4
			</td>
			<td>
			2.4
			</td>
			<td>
			15.7
			</td>
			<td>
			                                    3.1
			</td>
			<td>
			2.2
			</td>
		</tr>
<tr>
<td>
			SIA
			</td>
			<td>
			C6L
			</td>
			<td>
			15,757
			</td>
			<td>
			N.M.
			</td>
			<td>
			0.7
			</td>
			<td>
			-8.8
			</td>
			<td>
			                                 N.A.
			</td>
			<td>
			6.0
			</td>
		</tr>
<tr>
<td>
			Genting SG
			</td>
			<td>
			G13
			</td>
			<td>
			9,411
			</td>
			<td>
			34.3
			</td>
			<td>
			1.2
			</td>
			<td>
			3.5
			</td>
			<td>
			1.3
			</td>
			<td>
			0.0
			</td>
		</tr>
<tr>
<td>
			Mapletree Comm. Trust
			</td>
			<td>
			N2IU
			</td>
			<td>
			6,082
			</td>
			<td>
			18.1
			</td>
			<td>
			1.1
			</td>
			<td>
			5.9
			</td>
			<td>
			4.8
			</td>
			<td>
			-4.7
			</td>
		</tr>
<tr>
<td>
			Suntec REIT
			</td>
			<td>
			T82U
			</td>
			<td>
			4,560
			</td>
			<td>
			9.7
			</td>
			<td>
			0.8
			</td>
			<td>
			8.0
			</td>
			<td>
			5.1
			</td>
			<td>
			5.4
			</td>
		</tr>
<tr>
<td>
			SATS Ltd
			</td>
			<td>
			S58
			</td>
			<td>
			4,544
			</td>
			<td>
			N.M.
			</td>
			<td>
			2.9
			</td>
			<td>
			0.7
			</td>
			<td>
			N.A.
			</td>
			<td>
			4.1
			</td>
		</tr>
<tr>
<td>
			Frasers Centrepoint Trust
			</td>
			<td>
			J69U
			</td>
			<td>
			3,896
			</td>
			<td>
			22.7
			</td>
			<td>
			1.0
			</td>
			<td>
			5.2
			</td>
			<td>
			5.4
			</td>
			<td>
			-1.7
			</td>
		</tr>
<tr>
<td>
			Ascott Residence Trust
			</td>
			<td>
			HMN
			</td>
			<td>
			3,375
			</td>
			<td>
			14.1
			</td>
			<td>
			0.9
			</td>
			<td>
			3.7
			</td>
			<td>
			3.2
			</td>
			<td>
			0.7
			</td>
		</tr>
<tr>
<td>
			ComfortDelGro
			</td>
			<td>
			C52
			</td>
			<td>
			3,164
			</td>
			<td>
			20.0
			</td>
			<td>
			1.2
			</td>
			<td>
			6.1
			</td>
			<td>
			2.5
			</td>
			<td>
			   5.0
			</td>
		</tr>
<tr>
<td>
			CDL Hospitality Trust
			</td>
			<td>
			J85
			</td>
			<td>
			1,453
			</td>
			<td>
			21.4
			</td>
			<td>
			0.9
			</td>
			<td>
			4.2
			</td>
			<td>
			5.2
			</td>
			<td>
			0.9
			</td>
		</tr>
<tr>
<td>
			The Hour Glass
			</td>
			<td>
			AGS
			</td>
			<td>
			1,328
			</td>
			<td>
			11.8
			</td>
			<td>
			2.0
			</td>
			<td>
			17.6
			</td>
			<td>
			3.1
			</td>
			<td>
			-4.0
			</td>
		</tr>
<tr>
<td>
			Far East Hospitality Trust
			</td>
			<td>
			Q5T
			</td>
			<td>
			1,127
			</td>
			<td>
			N.A.
			</td>
			<td>
			0.7
			</td>
			<td>
			4.7
			</td>
			<td>
			3.8
			</td>
			<td>
			-3.4
			</td>
		</tr>
</tbody></table>
 Source: SGX, Refinitiv, Bloomberg (Data as of 11 February 2022).

 

Notable Border Reopenings Announcements in the Region in Recent Weeks 
Australia: For first time in almost two years, all fully vaccinated visa holders (incl. tourists) can travel to the country without exemption from 21 February. International arrivals will be subject to arrival caps and quarantine requirements of each state or territory.  Indonesia: Island of Bali has been opened to all foreign travellers from 4 February, with quarantine time for fully vaccinated visitors shortened to five days. This built on the opening of the island to an initial limited number of countries in October last year. Malaysia: National Recovery Council (NRC) announced full opening of its borders (to all countries) without mandatory quarantine as soon as March ’22 in a bid to boost economic recovery. Full details will on requirements and standard operating procedures of border reopening will be announced soon. Philippines: Borders re-opened to foreign tourists and for the first time in about a year. Visa-free entry resumed for arrivals from primary tourism markets while visitors holding valid visas will also be allowed entry. Singapore: VTL scheme commenced in September ’21 and by end November the scheme has expanded to 27 countries (prior to Omicron). Continues to gradually reopen its border and restore quarantine-free travel with more countries and regions. Thailand: Restarted quarantine-free entry program for vaccinated visitors on 1 February after a five-week suspension. Tourism represents around 20% of the country’s GDP. Vietnam: Restrictions on international passenger flights with all markets removed with effect from 15 February, with no limitation on the number of flights
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Airlines, Hospitality, and Leisure sectors led global stocks as daily new COVID cases globally stabilized. International flight bookings for ASEAN countries with easing border controls rose significantly in January ’22, with airlines expected to announce new schedules and building capacity to accommodate further ramp up, according to data from online travel company Skyscanner. 
	 
	
Closer to home, Changi Airport passenger volumes experienced upticks in the past three months (through Dec ’21). Dec ’21 volumes +121% M-o-M to 871k passengers as VTLs positively impacted travelers movement. 
	 
	As borders open, SGX stocks in Consumer, Hospitality, and Travel related sectors may see renewed investors’ focus. Outlook commentary from notable companies suggest cautiously optimistic views on uptick in international travel.

 

Green Shoots in International Travel as Air Tickets Bookings and Passenger Volumes Grow  
According to online travel company Skyscanner’s data, international flight bookings for ASEAN countries with relaxed border controls rose significantly in January. Countries such as Indonesia, Philippines, Singapore and Thailand saw return economy-class bookings from travelers in UK, U.S. and Germany rise 19-300% m-o-m in January, according to Skyscanner’s data. The firm expects airlines to announce new schedules and building capacity to facilitate the return of international travel at scale. Across the region, countries have also announced border reopening plans (see more below for more details).  
In Singapore, Changi Airport passenger movement data has also seen upticks in the past three months. Notably, December ’21 Changi Airport passenger volumes grew 120.5% M-o-M to 871k and built on the +54.9% M-o-M in November. While still c. 15.3% of pre-covid monthly levels of c. 5.7 million (average 2017-2019), implementation of vaccinated travel lane (VTL) locally had a positive impact.  
In the past week, Airlines, Hospitality and Leisure sectors have also led global stocks as daily new global confirmed COVID-19 cases continue to retreat from its peak in late January.



      
    
    Changi Airport


Source: Changi Airport, SGX  Most Actively-Traded SGX Stocks with Operating Assets/Businesses Tied to Reopening Theme  
As border reopens, investors’ focus may shift to SGX-listed stocks which may potentially benefit from increased international travel. Apart Singapore Airlines (SIA) and SATS, the most actively traded stocks with operating assets/businesses tied to reopening theme come from sectors such as consumer discretionary (e.g. hotels, leisure, retail, F&amp;B) and REITs.  
Since end January ‘22, Singapore Airlines has gained 6.2%, Genting Singapore has gained 6.1%, CDL Hospitality Trusts has gained 8.0% which includes a divided distribution. Singapore Airlines has seen S$77 million of net institutional inflow this year, with a 6.4% price gain to S$5.34, following a 16.6% gain in 2021 on S$557 million of net institutional outflow. While Ascott Residence Trust has generated a 2.7% including a dividend distribution since 31 Jan, it has marginally outpaced CDL Hospitality Trust since completing the combination with Ascendas Hospitality Trust on 31 Dec 2019.  Notable Commentary from last Earnings Reports  
Singapore Airlines (SIA): Saw recovery of international air travel in 1H FY21/22 with passenger traffic (measure in revenue passenger-kilometres) growing five-fold YoY and passenger capacity (available seat-kilometres) also up five-fold YoY to reach 32% of pre-COVID levels as of September ’21. Expecting passenger capacity to reach 43% of pre-COVID levels by December ’21.  SATS: Air cargo has already exceeded pre-COVID levels with APAC travel to reach pre-COVID levels by 2024. Retaining deep domain capabilities to support potential rebound in travel from easing of border restrictions in the region.  Mapletree Commercial Trust: Steady recovery for VivoCity in tandem with easing COVID-19 measures and strong festive spending, with tenant sales +3.7% YoY, almost reaching 90% of pre-COVID levels.




			Stock Name 
			
			
			Code
			
			
			Mkt Cap S$M
			
			
			P/E
			
			
			P/B
			
			
			ROE %
			
			
			Div Yield (%)
			
			
			2022 YTD Total Return 

			%
			
		


			Thai Beverage
			
			
			Y92
			
			
			16,580
			
			
			16.4
			
			
			2.4
			
			
			15.7
			
			
			                                    3.1
			
			
			2.2
			
		


			SIA
			
			
			C6L
			
			
			15,757
			
			
			N.M.
			
			
			0.7
			
			
			-8.8
			
			
			                                 N.A.
			
			
			6.0
			
		


			Genting SG
			
			
			G13
			
			
			9,411
			
			
			34.3
			
			
			1.2
			
			
			3.5
			
			
			1.3
			
			
			0.0
			
		


			Mapletree Comm. Trust
			
			
			N2IU
			
			
			6,082
			
			
			18.1
			
			
			1.1
			
			
			5.9
			
			
			4.8
			
			
			-4.7
			
		


			Suntec REIT
			
			
			T82U
			
			
			4,560
			
			
			9.7
			
			
			0.8
			
			
			8.0
			
			
			5.1
			
			
			5.4
			
		


			SATS Ltd
			
			
			S58
			
			
			4,544
			
			
			N.M.
			
			
			2.9
			
			
			0.7
			
			
			N.A.
			
			
			4.1
			
		


			Frasers Centrepoint Trust
			
			
			J69U
			
			
			3,896
			
			
			22.7
			
			
			1.0
			
			
			5.2
			
			
			5.4
			
			
			-1.7
			
		


			Ascott Residence Trust
			
			
			HMN
			
			
			3,375
			
			
			14.1
			
			
			0.9
			
			
			3.7
			
			
			3.2
			
			
			0.7
			
		


			ComfortDelGro
			
			
			C52
			
			
			3,164
			
			
			20.0
			
			
			1.2
			
			
			6.1
			
			
			2.5
			
			
			   5.0
			
		


			CDL Hospitality Trust
			
			
			J85
			
			
			1,453
			
			
			21.4
			
			
			0.9
			
			
			4.2
			
			
			5.2
			
			
			0.9
			
		


			The Hour Glass
			
			
			AGS
			
			
			1,328
			
			
			11.8
			
			
			2.0
			
			
			17.6
			
			
			3.1
			
			
			-4.0
			
		


			Far East Hospitality Trust
			
			
			Q5T
			
			
			1,127
			
			
			N.A.
			
			
			0.7
			
			
			4.7
			
			
			3.8
			
			
			-3.4
			
		

 Source: SGX, Refinitiv, Bloomberg (Data as of 11 February 2022).

 

Notable Border Reopenings Announcements in the Region in Recent Weeks  
Australia: For first time in almost two years, all fully vaccinated visa holders (incl. tourists) can travel to the country without exemption from 21 February. International arrivals will be subject to arrival caps and quarantine requirements of each state or territory.   Indonesia: Island of Bali has been opened to all foreign travellers from 4 February, with quarantine time for fully vaccinated visitors shortened to five days. This built on the opening of the island to an initial limited number of countries in October last year.  Malaysia: National Recovery Council (NRC) announced full opening of its borders (to all countries) without mandatory quarantine as soon as March ’22 in a bid to boost economic recovery. Full details will on requirements and standard operating procedures of border reopening will be announced soon.  Philippines: Borders re-opened to foreign tourists and for the first time in about a year. Visa-free entry resumed for arrivals from primary tourism markets while visitors holding valid visas will also be allowed entry.  Singapore: VTL scheme commenced in September ’21 and by end November the scheme has expanded to 27 countries (prior to Omicron). Continues to gradually reopen its border and restore quarantine-free travel with more countries and regions.  Thailand: Restarted quarantine-free entry program for vaccinated visitors on 1 February after a five-week suspension. Tourism represents around 20% of the country’s GDP.  Vietnam: Restrictions on international passenger flights with all markets removed with effect from 15 February, with no limitation on the number of flights



Green Shoots Emerging as International Travel Picks Up 

<figure>
 <img src='https://api2.sgx.com/sites/default/files/2022-02/Capture_9.PNG' alt='Buy sell activities ' />
 </figure>
 <div class='content-caption'>Buy sell activities </div>
<!DOCTYPE html PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN" "http://www.w3.org/TR/REC-html40/loose.dtd">
<html><body>Singapore continues to lead the Asia ex-Japan region as the largest REIT exchange traded fund (ETF) market following the listing of CSOP iEdge S-REIT Leaders ETF and the UOB APAC Green REIT ETF on the Singapore Exchange last year. 
Together with the two new listings, the 5 Singapore-listed Reit ETFs now have combined assets under management (AUM) of close to S$800 million, which has more than doubled since January 2020. 
The 2 ETFs with 100 per cent focus on S-REITs – Lion-Phillip S-REIT ETF and CSOP iEdge S-REIT Leaders ETF – recorded a combined AUM of S$353 million while the other three ETFs which offer Asia and Asia Pacific exposure – NikkoAM-StraitsTrading Asia Ex Japan REIT ETF, Phillip SGX APAC Dividend Leaders REIT ETF and UOB Asia Pacific (APAC) Green REIT ETF – recorded S$437 million of combined AUM. 
Retail investors, which net bought (note that net buy/sell amount is derived by subtracting total sell amount from total buy amount) over S$1 billion of S-Reits in 2021, have been a key driver of the overall S-Reits sector fund flow activities. 
Since the start of 2022, retail investors continue to net buy S-Reits, accumulating more than S$350 million in net retail inflows in the year to date. 
Similarly, the 5 Reit ETFs have seen 24 consecutive months of net buys by retail investors. 
In January 2022, retail investors net bought S$15 million of Reit ETFs from the secondary market, the largest amount seen over the last 24 months. 
Retail investors are active holders of Reit ETFs and are holding 43 per cent of the combined AUM across the 5 Reit ETFs (as of Jan 2022). 
Aside from direct cash investments, retail investors may also invest in Singapore-listed Reit ETFs via the Supplementary Retirement Scheme (SRS) and the CPF investment scheme (CPFIS). The NikkoAM-StraitsTrading Asia ex Japan Reit ETF was included under CPFIS in November 2021. 
In terms of sector performance, the FTSE ST Reit Index declined close to 2 per cent in the 2022 year to date till Feb 10, amid increasing expectations of a potential rate hike. 
The index yield spread (difference between risk-free rate and FTSE ST Reit Index's dividend yield) stands at 402bps, which is close to the average yield spread over the last 10 years. 
While interest rates gyration may potentially narrow the yield spread, fundamental factors such as macro-economic recovery and reopening may also have a positive impact on dividend yields. 
The 5 best performing Reits in the 2022 year to date include - Suntec Reit (+6.8 per cent), Sabana Industrial Reit (+4.8 per cent), Ascott Residence Trust (+4.6 per cent), Keppel Reit (+4.4 per cent) and CDL Hospitality Trusts (+4.3 per cent). REIT Watch is a weekly column on The Business Times,<a href="https://www.businesstimes.com.sg/companies-markets/retail-interest-picks-up-in-s-reit-etfs"> read </a>the original version.</body></html>


      
    
    Buy sell activities 

Singapore continues to lead the Asia ex-Japan region as the largest REIT exchange traded fund (ETF) market following the listing of CSOP iEdge S-REIT Leaders ETF and the UOB APAC Green REIT ETF on the Singapore Exchange last year.  
Together with the two new listings, the 5 Singapore-listed Reit ETFs now have combined assets under management (AUM) of close to S$800 million, which has more than doubled since January 2020.  
The 2 ETFs with 100 per cent focus on S-REITs – Lion-Phillip S-REIT ETF and CSOP iEdge S-REIT Leaders ETF – recorded a combined AUM of S$353 million while the other three ETFs which offer Asia and Asia Pacific exposure – NikkoAM-StraitsTrading Asia Ex Japan REIT ETF, Phillip SGX APAC Dividend Leaders REIT ETF and UOB Asia Pacific (APAC) Green REIT ETF – recorded S$437 million of combined AUM.  
Retail investors, which net bought (note that net buy/sell amount is derived by subtracting total sell amount from total buy amount) over S$1 billion of S-Reits in 2021, have been a key driver of the overall S-Reits sector fund flow activities.  
Since the start of 2022, retail investors continue to net buy S-Reits, accumulating more than S$350 million in net retail inflows in the year to date.  
Similarly, the 5 Reit ETFs have seen 24 consecutive months of net buys by retail investors.  
In January 2022, retail investors net bought S$15 million of Reit ETFs from the secondary market, the largest amount seen over the last 24 months.  
Retail investors are active holders of Reit ETFs and are holding 43 per cent of the combined AUM across the 5 Reit ETFs (as of Jan 2022).  
Aside from direct cash investments, retail investors may also invest in Singapore-listed Reit ETFs via the Supplementary Retirement Scheme (SRS) and the CPF investment scheme (CPFIS). The NikkoAM-StraitsTrading Asia ex Japan Reit ETF was included under CPFIS in November 2021.  
In terms of sector performance, the FTSE ST Reit Index declined close to 2 per cent in the 2022 year to date till Feb 10, amid increasing expectations of a potential rate hike.  
The index yield spread (difference between risk-free rate and FTSE ST Reit Index's dividend yield) stands at 402bps, which is close to the average yield spread over the last 10 years.  
While interest rates gyration may potentially narrow the yield spread, fundamental factors such as macro-economic recovery and reopening may also have a positive impact on dividend yields.  
The 5 best performing Reits in the 2022 year to date include - Suntec Reit (+6.8 per cent), Sabana Industrial Reit (+4.8 per cent), Ascott Residence Trust (+4.6 per cent), Keppel Reit (+4.4 per cent) and CDL Hospitality Trusts (+4.3 per cent).  REIT Watch is a weekly column on The Business Times, read the original version.


REIT Watch - Retail interest picks up in S-Reit ETFs

<figure>
 <img src='https://api2.sgx.com/sites/default/files/2022-02/Capture_0.PNG' alt='Singapore office assets' />
 </figure>
 <div class='content-caption'>Singapore office assets</div>
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According to data from the Urban Redevelopment Authority (URA), office rental prices in Q4 2021 have improved by 0.9 per cent quarter on quarter. The improvement in Q4 2021 comes after a decline of 3.5 per cent in the previous quarter. On a year-on-year basis, office rents have improved by 1.9 per cent in 2021, after dipping over 8.5 per cent in 2020.

Office vacancy rates have also shown a slight improvement in the latest Q4 2021 at 12.8 per cent. 
Listed in Singapore are five S-REITs with significant exposure to local office assets: CapitaLand Integrated Commercial Trust (CICT), Mapletree Commercial Trust (MCT), Suntec REIT, Keppel REIT, and OUE Commercial REIT. Three have reported full year 2021 results. 
CICT is a diversified S-Reit which has 36.8 per cent of its portfolio value in office-related assets with a majority located in Singapore. It reported a full-year 2021 gross revenue exceeding S$1.3 billion and net property income of over S$951 million from its enlarged portfolio since the merger of CapitaLand Mall Trust and CapitaLand Commercial Trust in 2020.

CICT's office portfolio has seen average office rentals improve 2.6 per cent quarter on quarter to S$10.33 psf on Dec 31, 2021 and improving from S$10.27 psf on Dec 31, 2020. The Reit's office occupancy rate stands at 91.5 per cent and it notes that the gap between committed rents and expired rents is expected to narrow as office market rentals look to improve.

CICT's major new leases and renewals completed in Q4 2021 and January 2022 included GIC, Mabanaft and Satellite (International) Singapore, and the Reit aims to continue to backfill vacancy in the portfolio as well as manage leases expiring in 2022. 
Suntec Reit has 82.2 per cent of its diversified portfolio in the office sector. It reported a full year 2021 gross revenue of over S$358 million, increasing 13.5 per cent year on year, and a net property income of over S$254 million, expanding 27.4 per cent year on year.

Suntec Reit's 3 Singapore office properties - Suntec City Office, One Raffles Quay, and MBFC Towers 1 and 2 - have an overall occupancy rate of 97.5 per cent, improving from 97.0 per cent the year before and exceeding that of Singapore's Core CBD occupancy rate of 93.3 per cent. Rent reversions grew 3.2 per cent in 2021 and its top 3 new tenants in 2021 include sectors from technology, media and telecommunications, banking, insurance and financial services, and manufacturing &amp; distribution.

Suntec Reit expects the outlook for its Singapore office portfolio to improve in tandem with economic recovery and income contribution to increase driven by cumulative positive rent reversions achieved in the past 14 quarters. However, the Reit notes that high expiry rents may result in weak positive rent reversion.

Keppel Reit is a pure-play office S-Reit with 78.4 per cent of its portfolio in Singapore office assets. It declared full year net property income of over S$172 million, increasing 27.3 per cent year on year and driven by acquisitions of Keppel Bay Tower in Singapore and Blue &amp; William in North Sydney and divestment of 275 George Street in Brisbane.

Keppel Reit has an occupancy rate of 95.4 per cent and its tenant retention rate was 62 per cent for FY2021.

OUE Commercial Reit is due to report second half and financial year ended Dec 31, 2021 after trading hours on Feb 16, 2022.  REIT Watch is a weekly column on The Business Times,<a href="https://www.businesstimes.com.sg/real-estate/keppel-groups-s-reits-average-36-dpu-growth-for-fy2021"> </a><a href="https://www.businesstimes.com.sg/companies-markets/s-reits-with-singapore-office-assets-sanguine-on-rental-outlook">read </a>the original version.
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    Singapore office assets


According to data from the Urban Redevelopment Authority (URA), office rental prices in Q4 2021 have improved by 0.9 per cent quarter on quarter. The improvement in Q4 2021 comes after a decline of 3.5 per cent in the previous quarter. On a year-on-year basis, office rents have improved by 1.9 per cent in 2021, after dipping over 8.5 per cent in 2020.

Office vacancy rates have also shown a slight improvement in the latest Q4 2021 at 12.8 per cent.  
Listed in Singapore are five S-REITs with significant exposure to local office assets: CapitaLand Integrated Commercial Trust (CICT), Mapletree Commercial Trust (MCT), Suntec REIT, Keppel REIT, and OUE Commercial REIT. Three have reported full year 2021 results.  
CICT is a diversified S-Reit which has 36.8 per cent of its portfolio value in office-related assets with a majority located in Singapore. It reported a full-year 2021 gross revenue exceeding S$1.3 billion and net property income of over S$951 million from its enlarged portfolio since the merger of CapitaLand Mall Trust and CapitaLand Commercial Trust in 2020.

CICT's office portfolio has seen average office rentals improve 2.6 per cent quarter on quarter to S$10.33 psf on Dec 31, 2021 and improving from S$10.27 psf on Dec 31, 2020. The Reit's office occupancy rate stands at 91.5 per cent and it notes that the gap between committed rents and expired rents is expected to narrow as office market rentals look to improve.

CICT's major new leases and renewals completed in Q4 2021 and January 2022 included GIC, Mabanaft and Satellite (International) Singapore, and the Reit aims to continue to backfill vacancy in the portfolio as well as manage leases expiring in 2022.  
Suntec Reit has 82.2 per cent of its diversified portfolio in the office sector. It reported a full year 2021 gross revenue of over S$358 million, increasing 13.5 per cent year on year, and a net property income of over S$254 million, expanding 27.4 per cent year on year.

Suntec Reit's 3 Singapore office properties - Suntec City Office, One Raffles Quay, and MBFC Towers 1 and 2 - have an overall occupancy rate of 97.5 per cent, improving from 97.0 per cent the year before and exceeding that of Singapore's Core CBD occupancy rate of 93.3 per cent. Rent reversions grew 3.2 per cent in 2021 and its top 3 new tenants in 2021 include sectors from technology, media and telecommunications, banking, insurance and financial services, and manufacturing &amp; distribution.

Suntec Reit expects the outlook for its Singapore office portfolio to improve in tandem with economic recovery and income contribution to increase driven by cumulative positive rent reversions achieved in the past 14 quarters. However, the Reit notes that high expiry rents may result in weak positive rent reversion.

Keppel Reit is a pure-play office S-Reit with 78.4 per cent of its portfolio in Singapore office assets. It declared full year net property income of over S$172 million, increasing 27.3 per cent year on year and driven by acquisitions of Keppel Bay Tower in Singapore and Blue &amp; William in North Sydney and divestment of 275 George Street in Brisbane.

Keppel Reit has an occupancy rate of 95.4 per cent and its tenant retention rate was 62 per cent for FY2021.

OUE Commercial Reit is due to report second half and financial year ended Dec 31, 2021 after trading hours on Feb 16, 2022.   REIT Watch is a weekly column on The Business Times, read the original version.



REIT Watch - S-Reits with Singapore office assets sanguine on rental outlook

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

SCCM Asia Research

Research from SooChow CSSD Capital Markets (Asia)

Headquartered in Singapore, SooChow CSSD Capital Markets (Asia) is an investment bank focusing on emerging growth companies across Asia, providing a full suite of investment banking services, including corporate finance, mergers and acquisitions advisory, equity capital markets, institutional equities sales and trading and equities research.

SooChow CSSD Capital Markets (Asia)

Thematic (Sector/Industry)

<ul><li><a href="https://www.smartkarma.com/entities/starhill-global-reit" target="_blank" data-smartkarma-citation="entities:10791" rel="noopener">Starhill Global REIT (SGREIT SP)</a> 1H22 DPU +2,3% YoY; Rebounded from the bottom though tourist arrivals remain key driver</li><li><a href="https://www.smartkarma.com/entities/frasers-centrepoint-trust" target="_blank" data-smartkarma-citation="entities:2870" rel="noopener">Frasers Centrepoint Trust (FCT SP)</a> 1Q22 Business Updates –  Resilient performance with tenant sales besting pre-Covid levels albeit due to seasonality</li><li><a href="https://www.smartkarma.com/entities/keppel-reit" target="_blank" data-smartkarma-citation="entities:192" rel="noopener">Keppel REIT (KREIT SP)</a> 2H21 DPU -1.7% YoY; Occupancy fell despite rentals picking up pace</li></ul>

Starhill Global REIT (SGREIT SP) 1H22 DPU +2,3% YoY; Rebounded from the bottom though tourist arrivals remain key driverFrasers Centrepoint Trust (FCT SP) 1Q22 Business Updates –  Resilient performance with tenant sales besting pre-Covid levels albeit due to seasonalityKeppel REIT (KREIT SP) 2H21 DPU -1.7% YoY; Occupancy fell despite rentals picking up pace

ASEAN Builder's Scoop (26Jan22) - SGREIT Rebounded from Bottom

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 <img src='https://api2.sgx.com/sites/default/files/2021-12/Capture_10.PNG' alt='Suntec REIT - CEO' />
 </figure>
 <div class='content-caption'>Suntec REIT - CEO</div>
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With more than three decades of financial and real estate management experience under his belt, Chong Kee Hiong increasingly values the objectivity, flexibility and insight that comes with keeping an open mind. 
These characteristics in turn boost creativity, critical thinking, and lay the foundation for lifelong learning, said the Chief Executive Oﬃcer of the manager of SGX-listed Suntec Real Estate Investment Trust (REIT). 
“It’s important to have an open mind when faced with uncertainty and challenges; never rush into decisions,” he pointed out. “Often, if we know the issues, we’re likely to be able to find solutions - these issues are then within our control.” 
"We should focus on building our knowledge base, and the capacity to adapt and diversify, to ensure there are more “controllable” than “uncontrollable” events. This would help us to sleep better at night.” 
Open minds can also open a multitude of doors. “We must always be ready to take on new opportunities and challenges when they arise,” Chong added.  
“To do so, we have to adopt a mindset that actively and continuously looks for learning opportunities, so as to equip ourselves with diversified skillsets over time.” 
Chong, who is an elected Member of Parliament for Bishan-Toa Payoh GRC, was appointed CEO of the REIT manager, ARA Trust Management (Suntec) Ltd, in January 2019. 
Prior to joining the REIT Manager, Chong was CEO of OUE Hospitality REIT Management Pte Ltd from 2013 to 2018. He helmed The Ascott Ltd from 2012 to 2013, and Ascott Residence Trust Management Ltd from 2005 to 2012. Prior to that, he was Raffles Holdings Ltd’s Chief Financial Officer, and began his career in audit with KPMG Peat Marwick in 1990. 
Chong holds a Bachelor of Accountancy degree from National University of Singapore. He has also completed Harvard Business School's Advanced Management Program, and is a member of the Institute of Singapore Chartered Accountants. 
Looking back on his 30-year career journey, highlights include developing skillsets and nurturing talent. “The greatest satisfaction is being able to learn and mature on the job. It’s also heartening to see fellow colleagues growing in their roles, and to be able to play a part in their work and learning journeys,” Chong added. 
Listed in December 2004, Suntec REIT aims to invest in income-producing real estate primarily used for office and/or retail purposes. The REIT is managed by ARA Trust Management (Suntec) Ltd, a wholly owned subsidiary of ARA Asset Management Ltd, which is Asia Pacific’s largest real assets manager with US$95 billion in gross assets under management (AUM). 
Suntec REIT holds properties in Suntec City, Singapore’s largest integrated commercial development (including one of Singapore’s largest shopping malls), a 66.3% interest in Suntec Singapore Convention &amp; Exhibition Centre, a one-third interest in One Raffles Quay, as well as a one-third interest in Marina Bay Financial Centre Towers 1 and 2 and the Marina Bay Link Mall.  
Down under in Australia, it owns the following commercial buildings: a 100% interest in 177 Pacific Highway, Sydney, 100% of 21 Harris Street, Pyrmont, Sydney, 50% of Southgate Complex, Melbourne, 50% of Olderfleet 477 Collins Street, Melbourne, and 100% of 55 Currie Street, Adelaide.  Opportunities in Crisis 
To boost income stability and enhance geographical diversification, the REIT made its first foray in London, the UK, with the acquisition of a 50% stake in Nova Properties in December 2020. It also acquired The Minster Building, its second property in London, in June 2021.  
These assets were a strategic fit with Suntec REIT’s existing portfolio of high-quality commercial assets in Singapore and Australia. Lower yielding commercial assets were divested to partially fund these acquisitions, which were higher yielding than the assets divested, and accretive in both Distribution Per Unit (DPU) and Net Asset Value (NAV). 
“Despite pandemic-induced difficulties, we’ve succeeded in enhancing unitholder value through active portfolio management,” Chong noted. “The phrase “with every crisis, comes opportunity” has never been more apt.” 
Presently, Suntec REIT’s AUM stands at S$11.6 billion across 10 properties in Singapore (71% of AUM), Australia (16% of AUM), and the UK (13% of AUM). The REIT continues to be anchored by the resilient office sector, which contributes more than 85% of its total income. 
“While Suntec REIT remains Singapore-centric, we will further boost income stability by sourcing for good quality, accretive assets. Overseas assets are expected to grow to between 30% to 40% of AUM over the next few years,” he added. 
Apart from unitholders, the REIT is also focused on working with tenants for a mutually beneficial long-term relationship. “In these unprecedented times, the need to share risks and rewards in business relationships is amplified,” Chong noted. 
Suntec REIT has provided a raft of tenant assistance measures, including flexible operating hours, complimentary marketing support, increased seating capacity for food and beverage tenants, and rental rebates for retail tenants, to help mitigate challenges from the pandemic. Some of these measures continue to remain in place. 
Looking ahead, prospects for the REIT’s office portfolio remain bright. 
“While hybrid working arrangements are likely to continue, the physical office will remain relevant as the conduit to bring employees together to build corporate culture,” Chong noted. 
“In addition, aspects of work like teamwork, collaboration, innovation and mentoring are most effective in face-to-face settings. Surveys have also shown that employees want to return to the office three to four days a week, unlike contrasting feedback at the start of the pandemic.” 
The REIT expects its overall Singapore office portfolio to perform well, with revenue growth driven by higher occupancy and cumulative positive rent reversions achieved for the past 13 quarters. 
“Office revenues from Australia and UK assets will remain resilient as they are underpinned by strong occupancies and long weighted average lease expiries,” he added. “In particular, annual rent escalations provide upside to the Australia assets.” Future-Proofing Assets 
As for the REIT’s retail properties in Singapore, “green shoots of recovery” have appeared, particularly with the re-opening of the economy and high vaccination levels in the population. 
“Despite some border restrictions, and a tightening of safe-distancing measures, tenant sales at Suntec City Mall have continued to recover faster than footfall increases since the fourth quarter of 2020,” Chong said. “We’ve seen tenant sales recovering to 75% of 2019 levels versus footfall, which is at 50% of 2019 levels.” 
In addition, a shift in consumer behaviour has emerged - shoppers now window-shop much less. Instead, they seek novel and experiential concepts and brands. 
“At Suntec City, we’ve been proactively future-proofing our mall to better retain and attract customers,” he said. 
Despite COVID-19 disruptions, 19 new-to-market or new-to-Suntec brands were introduced this year, of which 50% catered to Singaporeans’ desire for new F&amp;B concepts. The REIT Manager has also increased the number of activity-based and experiential concepts to around 35% of the mall’s total leaseable area.  
“This, together with more than 25% of Suntec City dedicated to F&amp;B offerings, will strengthen the mall’s performance, making it more sustainable and allowing it to ride the wave of recovery.” 
Apart from day-to-day operational priorities, Suntec REIT is also focused on its Environmental, Social and Governance (ESG) goals. “We strongly believe in the importance of integrating sustainability into our strategies, operations and acquisitions,” Chong said. 
“Building certifications such as Greenmark, NABERS, BREEAM, LEEDS will become more important. Whilst the majority of our buildings across Singapore, Australia and London have attained green certification, we continue to work towards enhancing the ratings by improving energy and water consumption efficiencies and reducing use of natural resources.” 
In recognition of its sustainability leadership, Suntec REIT was awarded the GRESB highest accolade of Global Sector Leader for the Office-Listed category, and ranked Number One in Asia (Office). The REIT also retained the highest GRESB 5 Star rating. Established in 2009, GRESB is one of the leading ESG benchmarks for real estate and infrastructure investments globally. 
Meanwhile, for this 55-year-old, time outside the office revolves around serving the community. To recharge, he enjoys walking, running or golfing. 
In terms of advice for his four boys, aged 15 to 23, and staff, he has this to offer: Cultivate the desire and drive to work hard, through which you can then achieve your aspirations, and be in the position to help others. 
“Perseverance, maintaining the principles of being fair and objective, being sincere, and having respect for others - these are all values close to my heart.” Suntec REIT 
Listed in December 2004, Suntec REIT holds properties in Suntec City, Singapore’s largest  integrated commercial development (including one of Singapore’s largest  shopping malls), a 66.3% interest in Suntec Singapore Convention &amp; Exhibition Centre, a one-third interest in One Raffles Quay, as well as a one-third interest in Marina  Bay Financial Centre Towers 1 and 2 and the Marina Bay Link Mall. Suntec REIT holds a 100% interest in a commercial building located at 177 Pacific Highway, Sydney, a 100% interest in a commercial building located at 21 Harris Street, Pyrmont, Sydney, a 50.0% interest in Southgate Complex, Melbourne, a 50.0% interest in a commercial building located at Olderfleet 477 Collins Street, Melbourne and a 100% interest in a commercial building located at 55 Currie Street, Adelaide, Australia. Suntec REIT also holds a 50.0% interest in Nova Properties and a 100% interest in The Minster Building, both located in London, UK. Suntec REIT is managed by an external manager, ARA Trust  Management  (Suntec) Ltd.  
The company website is: <a href="http://www.suntecreit.com.">www.suntecreit.com.</a> 
Click <a href="https://www.sgx.com/securities/equities/T82U">here </a>for the company's StockFacts page. 
For the quarter ended 30 September 2021 business update, click <a href="https://links.sgx.com/1.0.0/corporate-announcements/F8FA1JTWKSLKVMD9/687727_Suntec%20REIT%20-%203Q2021%20Press%20Release.pdf">here</a>. 
 

About kopi-C: the Company brew

Text: Jennifer Tan-Stanisic Photo: Company file kopi-C is a regular column on the SGX Research website that features C-level executives of leading companies listed on Singapore Exchange. These interviews are profiles of senior management aimed at helping investors better understand the individuals who run these corporations. 
For previous editions of kopi-C: the Company brew, please click <a href="https://www.sgx.com/research-education/market-dialogues">here</a>.   
For more information, or if you would like your senior executives to be featured on SGX Market Dialogues, please send suggestions to <a href="https://www.sgx.com/jennifer.t@sgx.com">jennifer.t@sgx.com</a>.
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    Suntec REIT - CEO


With more than three decades of financial and real estate management experience under his belt, Chong Kee Hiong increasingly values the objectivity, flexibility and insight that comes with keeping an open mind.  
These characteristics in turn boost creativity, critical thinking, and lay the foundation for lifelong learning, said the Chief Executive Oﬃcer of the manager of SGX-listed Suntec Real Estate Investment Trust (REIT).  
“It’s important to have an open mind when faced with uncertainty and challenges; never rush into decisions,” he pointed out. “Often, if we know the issues, we’re likely to be able to find solutions - these issues are then within our control.”  
"We should focus on building our knowledge base, and the capacity to adapt and diversify, to ensure there are more “controllable” than “uncontrollable” events. This would help us to sleep better at night.”  
Open minds can also open a multitude of doors. “We must always be ready to take on new opportunities and challenges when they arise,” Chong added.   
“To do so, we have to adopt a mindset that actively and continuously looks for learning opportunities, so as to equip ourselves with diversified skillsets over time.”  
Chong, who is an elected Member of Parliament for Bishan-Toa Payoh GRC, was appointed CEO of the REIT manager, ARA Trust Management (Suntec) Ltd, in January 2019.  
Prior to joining the REIT Manager, Chong was CEO of OUE Hospitality REIT Management Pte Ltd from 2013 to 2018. He helmed The Ascott Ltd from 2012 to 2013, and Ascott Residence Trust Management Ltd from 2005 to 2012. Prior to that, he was Raffles Holdings Ltd’s Chief Financial Officer, and began his career in audit with KPMG Peat Marwick in 1990.  
Chong holds a Bachelor of Accountancy degree from National University of Singapore. He has also completed Harvard Business School's Advanced Management Program, and is a member of the Institute of Singapore Chartered Accountants.  
Looking back on his 30-year career journey, highlights include developing skillsets and nurturing talent. “The greatest satisfaction is being able to learn and mature on the job. It’s also heartening to see fellow colleagues growing in their roles, and to be able to play a part in their work and learning journeys,” Chong added.  
Listed in December 2004, Suntec REIT aims to invest in income-producing real estate primarily used for office and/or retail purposes. The REIT is managed by ARA Trust Management (Suntec) Ltd, a wholly owned subsidiary of ARA Asset Management Ltd, which is Asia Pacific’s largest real assets manager with US$95 billion in gross assets under management (AUM).  
Suntec REIT holds properties in Suntec City, Singapore’s largest integrated commercial development (including one of Singapore’s largest shopping malls), a 66.3% interest in Suntec Singapore Convention &amp; Exhibition Centre, a one-third interest in One Raffles Quay, as well as a one-third interest in Marina Bay Financial Centre Towers 1 and 2 and the Marina Bay Link Mall.   
Down under in Australia, it owns the following commercial buildings: a 100% interest in 177 Pacific Highway, Sydney, 100% of 21 Harris Street, Pyrmont, Sydney, 50% of Southgate Complex, Melbourne, 50% of Olderfleet 477 Collins Street, Melbourne, and 100% of 55 Currie Street, Adelaide.   Opportunities in Crisis  
To boost income stability and enhance geographical diversification, the REIT made its first foray in London, the UK, with the acquisition of a 50% stake in Nova Properties in December 2020. It also acquired The Minster Building, its second property in London, in June 2021.   
These assets were a strategic fit with Suntec REIT’s existing portfolio of high-quality commercial assets in Singapore and Australia. Lower yielding commercial assets were divested to partially fund these acquisitions, which were higher yielding than the assets divested, and accretive in both Distribution Per Unit (DPU) and Net Asset Value (NAV).  
“Despite pandemic-induced difficulties, we’ve succeeded in enhancing unitholder value through active portfolio management,” Chong noted. “The phrase “with every crisis, comes opportunity” has never been more apt.”  
Presently, Suntec REIT’s AUM stands at S$11.6 billion across 10 properties in Singapore (71% of AUM), Australia (16% of AUM), and the UK (13% of AUM). The REIT continues to be anchored by the resilient office sector, which contributes more than 85% of its total income.  
“While Suntec REIT remains Singapore-centric, we will further boost income stability by sourcing for good quality, accretive assets. Overseas assets are expected to grow to between 30% to 40% of AUM over the next few years,” he added.  
Apart from unitholders, the REIT is also focused on working with tenants for a mutually beneficial long-term relationship. “In these unprecedented times, the need to share risks and rewards in business relationships is amplified,” Chong noted.  
Suntec REIT has provided a raft of tenant assistance measures, including flexible operating hours, complimentary marketing support, increased seating capacity for food and beverage tenants, and rental rebates for retail tenants, to help mitigate challenges from the pandemic. Some of these measures continue to remain in place.  
Looking ahead, prospects for the REIT’s office portfolio remain bright.  
“While hybrid working arrangements are likely to continue, the physical office will remain relevant as the conduit to bring employees together to build corporate culture,” Chong noted.  
“In addition, aspects of work like teamwork, collaboration, innovation and mentoring are most effective in face-to-face settings. Surveys have also shown that employees want to return to the office three to four days a week, unlike contrasting feedback at the start of the pandemic.”  
The REIT expects its overall Singapore office portfolio to perform well, with revenue growth driven by higher occupancy and cumulative positive rent reversions achieved for the past 13 quarters.  
“Office revenues from Australia and UK assets will remain resilient as they are underpinned by strong occupancies and long weighted average lease expiries,” he added. “In particular, annual rent escalations provide upside to the Australia assets.”  Future-Proofing Assets  
As for the REIT’s retail properties in Singapore, “green shoots of recovery” have appeared, particularly with the re-opening of the economy and high vaccination levels in the population.  
“Despite some border restrictions, and a tightening of safe-distancing measures, tenant sales at Suntec City Mall have continued to recover faster than footfall increases since the fourth quarter of 2020,” Chong said. “We’ve seen tenant sales recovering to 75% of 2019 levels versus footfall, which is at 50% of 2019 levels.”  
In addition, a shift in consumer behaviour has emerged - shoppers now window-shop much less. Instead, they seek novel and experiential concepts and brands.  
“At Suntec City, we’ve been proactively future-proofing our mall to better retain and attract customers,” he said.  
Despite COVID-19 disruptions, 19 new-to-market or new-to-Suntec brands were introduced this year, of which 50% catered to Singaporeans’ desire for new F&amp;B concepts. The REIT Manager has also increased the number of activity-based and experiential concepts to around 35% of the mall’s total leaseable area.   
“This, together with more than 25% of Suntec City dedicated to F&amp;B offerings, will strengthen the mall’s performance, making it more sustainable and allowing it to ride the wave of recovery.”  
Apart from day-to-day operational priorities, Suntec REIT is also focused on its Environmental, Social and Governance (ESG) goals. “We strongly believe in the importance of integrating sustainability into our strategies, operations and acquisitions,” Chong said.  
“Building certifications such as Greenmark, NABERS, BREEAM, LEEDS will become more important. Whilst the majority of our buildings across Singapore, Australia and London have attained green certification, we continue to work towards enhancing the ratings by improving energy and water consumption efficiencies and reducing use of natural resources.”  
In recognition of its sustainability leadership, Suntec REIT was awarded the GRESB highest accolade of Global Sector Leader for the Office-Listed category, and ranked Number One in Asia (Office). The REIT also retained the highest GRESB 5 Star rating. Established in 2009, GRESB is one of the leading ESG benchmarks for real estate and infrastructure investments globally.  
Meanwhile, for this 55-year-old, time outside the office revolves around serving the community. To recharge, he enjoys walking, running or golfing.  
In terms of advice for his four boys, aged 15 to 23, and staff, he has this to offer: Cultivate the desire and drive to work hard, through which you can then achieve your aspirations, and be in the position to help others.  
“Perseverance, maintaining the principles of being fair and objective, being sincere, and having respect for others - these are all values close to my heart.”   Suntec REIT  
Listed in December 2004, Suntec REIT holds properties in Suntec City, Singapore’s largest  integrated commercial development (including one of Singapore’s largest  shopping malls), a 66.3% interest in Suntec Singapore Convention &amp; Exhibition Centre, a one-third interest in One Raffles Quay, as well as a one-third interest in Marina  Bay Financial Centre Towers 1 and 2 and the Marina Bay Link Mall. Suntec REIT holds a 100% interest in a commercial building located at 177 Pacific Highway, Sydney, a 100% interest in a commercial building located at 21 Harris Street, Pyrmont, Sydney, a 50.0% interest in Southgate Complex, Melbourne, a 50.0% interest in a commercial building located at Olderfleet 477 Collins Street, Melbourne and a 100% interest in a commercial building located at 55 Currie Street, Adelaide, Australia. Suntec REIT also holds a 50.0% interest in Nova Properties and a 100% interest in The Minster Building, both located in London, UK. Suntec REIT is managed by an external manager, ARA Trust  Management  (Suntec) Ltd.   
The company website is: www.suntecreit.com.  
Click here for the company's StockFacts page.  
For the quarter ended 30 September 2021 business update, click here.  
 

About kopi-C: the Company brew

Text: Jennifer Tan-Stanisic Photo: Company file  kopi-C is a regular column on the SGX Research website that features C-level executives of leading companies listed on Singapore Exchange. These interviews are profiles of senior management aimed at helping investors better understand the individuals who run these corporations.  
For previous editions of kopi-C: the Company brew, please click here.    
For more information, or if you would like your senior executives to be featured on SGX Market Dialogues, please send suggestions to jennifer.t@sgx.com.



Suntec REIT: Enhancing Value, Building Resilience

Singapore

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

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

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

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

Frasers Logistics & Commercial Trust (FLT SP)

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

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

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

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

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

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

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.

CDL Hospitality Trusts is a stapled group compromising H-REIT and HBT. H-REIT is a real estate investment trust that invest in a portfolio of income-producing properties and HBT is a business trust.

Fortune REIT is a real estate investment trust that invests in a portfolio of retail shopping malls located in Hong Kong.

Japan Hotel REIT Investment Corporation is a real estate investment trust(REIT) which invests in securitized real estate products. The Company mainly invests in real estate properties used in hotels.

United Urban Investment Corporation is a real estate investment trust (REIT). The Company directly invests in real estate properties such as shopping centers, offices, hotels, and residential buildings.

ORIX JREIT Inc. is a real estate investment trust (REIT) which invests in securitized real estate products.  The Company directly invests in real estate properties such as offices, rental housings, and hotels.

Invincible Investment Corp is a real estate investment trust (REIT) which  invests in securitized real estate products. TGR Investment invests in income  producing residential and office buildings.

Medical Properties Trust Inc. is a self-advised real estate investment trust formed to acquire and develop net-leased healthcare facilities. These facilities include inpatient rehabilitation hospitals, long-term acute care hospitals, regional acute care hospitals, ambulatory surgery centers, and other single-discipline healthcare facilities such as heart hospitals.

The Geo Group Inc. operates private correctional facilities located mostly in the United States, but also in Australia, Canada, New Zealand, and South Africa.  The Company offers educational programs, vocational training, and rehabilitation therapy services.

KLCC Property Holdings Bhd comprises of units in a Real Estate Investment Trust (KLCC REIT) stapled together with the ordinary shares of KLCC Property Holdings Berhad. The Stapled Security, through the subsidiaries of KLCC Property Holdings Berhad, is engaged in providing facility management services and car parking management services.

Sekisui House Reit, Inc. is a real estate investment trust (REIT) which mainly invests in real estate and securitized real estate products. Properties are mainly Business office buildings and are located in Tokyo, Osaka and Nagoya area. Sekisui House Reit, Inc. also invests in commercial properties in foreign countries.

Sunstone Hotel Investors, Inc. is a hospitality and lodging real estate investment trust that owns primarily upper scale and upscale hotels in the United States. The Company's hotels are operated under various branded names.

Highwoods Properties, Inc., with its operating partnership and subsidiaries, develops, manages, leases and acquires suburban office and industrial properties. Highwoods has expanded into markets throughout the southeastern and midwestern United States.

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

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