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.

Asia’s leading multi-asset exchange

SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Equity Bottom-Up

CapitaLand Ascendas REIT / Equity Bottom-Up

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Singapore REITs was the top net buy sector in Jan 2020, garnering net institutional inflows of S$174.9 mln, SGX data showed. This reversed net outflows of S$102.5 mln and S$127.5 mln in Dec 2019 and Nov 2019 respectively. 
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The top institutional net buy REITs in Jan were: CapitaLand Commercial Trust (+S$68.1 mln), Ascendas REIT (+S$64.0 mln), CapitaLand Mall Trust (+S$25.7 million) and Mapletree Industrial Trust (+S$22.3 mln). 
	 </li>
	<li>In the 2020 YTD, the four top institutional net buy REITs in Jan have generated a total return of 8.1%. Over calendar year 2019, they averaged a total return of 25.2%, bringing their 3Y total return to 66.9%.</li>
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 SGX lists 36 REITs, six stapled trusts and two property trusts with a combined market cap of over S$100 billion. Singapore REITs was the top net buy sector in January 2020, garnering net institutional inflows of S$174.9 million, SGX data showed. This reversed net outflows of S$102.5 million and S$127.5 million in December and November 2019 respectively
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 <img src='https://api2.sgx.com/sites/default/files/2020-02/JAN%20INSTI%20FLOWS.PNG' alt='JAN INSTI INFLOW ' />
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 <div class='content-caption'>JAN INSTI INFLOW </div>
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 <img src='https://api2.sgx.com/sites/default/files/2020-02/TOTAL%20RETURNS%20FOR%20S-REITS%20SECTOR.PNG' alt='TOTAL RETURN FOR S-REIT SECTOR ' />
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 <div class='content-caption'>TOTAL RETURN FOR S-REIT SECTOR </div>
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 <img src='https://api2.sgx.com/sites/default/files/2020-02/TOP%20INSTI%20NET%20BUY.PNG' alt='TOP INSTI NET BUY' />
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 <div class='content-caption'>TOP INSTI NET BUY</div>
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CapitaLand Commercial Trust (CCT) and CapitaLand Mall Trust (CMT) attracted high fund inflows in January following the announcement of their <a href="https://links.sgx.com/FileOpen/News_Release_Joint_CMT_CCT_20200122.ashx?App=Announcement&amp;FileID=594066">proposed merger</a> to create Asia Pacific’s third-largest REIT – CapitaLand Integrated Commercial Trust (CICT) – through an S$8.3 billion cash-and-stock deal. The merger, which is at least the fifth tie-up among Singapore-listed REITs in the past 12 months, is expected to create a combined entity with a market cap of about S$17 billion and property value of over S$20 billion.

CMT is the largest mall owner in Singapore with 15 shopping centres, while CCT is the biggest office landlord with 10 assets – eight in Singapore and two in Frankfurt, Germany. The deal, by way of a trust scheme of arrangement, is subject to the approval of unitholders of CMT and CCT, and will see CMT acquiring all the issued units in CCT in the form of cash and new CMT units. The proposed merger is subject to approval by unitholders of CMT and CCT at upcoming extraordinary general meetings, the approval of CCT unitholders at a scheme meeting – expected in May – as well as regulatory and third-party approvals.

For a Market Update on the December quarter earnings of SGX’s three largest industrial REITs – Ascendas REIT, Mapletree Logistics Trust and Mapletree Industrial Trust – click <a href="https://www2.sgx.com/research-education/market-updates/20200210-december-quarter-earnings-sgxs-largest-industrial-reits">here</a>.

In the 2020 year-to-date, January’s four top institutional net buy REITs have generated a total return of 8.1%. Over calendar year 2019, they averaged a total return of 25.2%, bringing their three-year total return to 66.9%.

The table below details January’s four top institutional net buy REITs, sorted by market cap. 
 

<table class="table table-striped"><tbody>
<tr>
<td>
			Name
			</td>
			<td>
			SGX Code
			</td>
			<td>
			Market Cap (S$M)
			</td>
			<td>
			Total Return 2019 (%)
			</td>
			<td>
			Total Return YTD (%)
			</td>
			<td>
			Total Return 1Y (%)
			</td>
			<td>
			Total Return 3Y (%)
			</td>
		</tr>
<tr>
<td>
			ASCENDAS REIT
			</td>
			<td>
			A17U
			</td>
			<td>
			11,904
			</td>
			<td>
			24.3
			</td>
			<td>
			11.0
			</td>
			<td>
			29.8
			</td>
			<td>
			58.1
			</td>
		</tr>
<tr>
<td>
			CAPITALAND MALL TRUST
			</td>
			<td>
			C38U
			</td>
			<td>
			9,259
			</td>
			<td>
			13.4
			</td>
			<td>
			3.3
			</td>
			<td>
			10.5
			</td>
			<td>
			48.0
			</td>
		</tr>
<tr>
<td>
			CAPITALAND COMMERCIAL TRUST
			</td>
			<td>
			C61U
			</td>
			<td>
			8,063
			</td>
			<td>
			19.2
			</td>
			<td>
			7.0
			</td>
			<td>
			15.9
			</td>
			<td>
			57.9
			</td>
		</tr>
<tr>
<td>
			MAPLETREE INDUSTRIAL TRUST
			</td>
			<td>
			ME8U
			</td>
			<td>
			6,317
			</td>
			<td>
			43.9
			</td>
			<td>
			11.3
			</td>
			<td>
			51.5
			</td>
			<td>
			103.7
			</td>
		</tr>
<tr>
<td>
			Average
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			25.2
			</td>
			<td>
			8.1
			</td>
			<td>
			26.9
			</td>
			<td>
			66.9
			</td>
		</tr>
</tbody></table>
 Source: Bloomberg &amp; StockFacts (data as of 12 Feb 20)
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Singapore REITs was the top net buy sector in Jan 2020, garnering net institutional inflows of S$174.9 mln, SGX data showed. This reversed net outflows of S$102.5 mln and S$127.5 mln in Dec 2019 and Nov 2019 respectively. 
	 
	
The top institutional net buy REITs in Jan were: CapitaLand Commercial Trust (+S$68.1 mln), Ascendas REIT (+S$64.0 mln), CapitaLand Mall Trust (+S$25.7 million) and Mapletree Industrial Trust (+S$22.3 mln). 
	 
	In the 2020 YTD, the four top institutional net buy REITs in Jan have generated a total return of 8.1%. Over calendar year 2019, they averaged a total return of 25.2%, bringing their 3Y total return to 66.9%.

 

 SGX lists 36 REITs, six stapled trusts and two property trusts with a combined market cap of over S$100 billion. Singapore REITs was the top net buy sector in January 2020, garnering net institutional inflows of S$174.9 million, SGX data showed. This reversed net outflows of S$102.5 million and S$127.5 million in December and November 2019 respectively



      
    
    JAN INSTI INFLOW 

      
    
    TOTAL RETURN FOR S-REIT SECTOR 

      
    
    TOP INSTI NET BUY


CapitaLand Commercial Trust (CCT) and CapitaLand Mall Trust (CMT) attracted high fund inflows in January following the announcement of their proposed merger to create Asia Pacific’s third-largest REIT – CapitaLand Integrated Commercial Trust (CICT) – through an S$8.3 billion cash-and-stock deal. The merger, which is at least the fifth tie-up among Singapore-listed REITs in the past 12 months, is expected to create a combined entity with a market cap of about S$17 billion and property value of over S$20 billion.

CMT is the largest mall owner in Singapore with 15 shopping centres, while CCT is the biggest office landlord with 10 assets – eight in Singapore and two in Frankfurt, Germany. The deal, by way of a trust scheme of arrangement, is subject to the approval of unitholders of CMT and CCT, and will see CMT acquiring all the issued units in CCT in the form of cash and new CMT units. The proposed merger is subject to approval by unitholders of CMT and CCT at upcoming extraordinary general meetings, the approval of CCT unitholders at a scheme meeting – expected in May – as well as regulatory and third-party approvals.

For a Market Update on the December quarter earnings of SGX’s three largest industrial REITs – Ascendas REIT, Mapletree Logistics Trust and Mapletree Industrial Trust – click here.

In the 2020 year-to-date, January’s four top institutional net buy REITs have generated a total return of 8.1%. Over calendar year 2019, they averaged a total return of 25.2%, bringing their three-year total return to 66.9%.

The table below details January’s four top institutional net buy REITs, sorted by market cap. 
 




			Name
			
			
			SGX Code
			
			
			Market Cap (S$M)
			
			
			Total Return 2019 (%)
			
			
			Total Return YTD (%)
			
			
			Total Return 1Y (%)
			
			
			Total Return 3Y (%)
			
		


			ASCENDAS REIT
			
			
			A17U
			
			
			11,904
			
			
			24.3
			
			
			11.0
			
			
			29.8
			
			
			58.1
			
		


			CAPITALAND MALL TRUST
			
			
			C38U
			
			
			9,259
			
			
			13.4
			
			
			3.3
			
			
			10.5
			
			
			48.0
			
		


			CAPITALAND COMMERCIAL TRUST
			
			
			C61U
			
			
			8,063
			
			
			19.2
			
			
			7.0
			
			
			15.9
			
			
			57.9
			
		


			MAPLETREE INDUSTRIAL TRUST
			
			
			ME8U
			
			
			6,317
			
			
			43.9
			
			
			11.3
			
			
			51.5
			
			
			103.7
			
		


			Average
			
			
			 
			
			
			 
			
			
			25.2
			
			
			8.1
			
			
			26.9
			
			
			66.9
			
		

 Source: Bloomberg &amp; StockFacts (data as of 12 Feb 20)



Defensive Nature of S-REITs Draws Fund Flows in January