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





SGX lists 34 REITs, five stapled trusts and three property trusts with a combined market cap of nearly S$100 billion. Of these 42 trusts, 19 – with a combined market cap of over S$30 billion – own more than half their assets in markets outside Singapore. 
	 
	
Single-market REITs include Fortune REIT, Lippo Malls Indonesia Retail Trust, and Ascendas India Trust. Pure China plays are CapitaLand Retail China Trust, Sasseur REIT, EC World REIT, Dasin Retail Trust and BHG Retail Trust. Manulife US REIT and Keppel KBS US REIT are US-based trusts, while IREIT Global and Cromwell European REIT are focused on Europe. 
	 
	
Aside from geographical diversity, assets owned by the 19 trusts span various sub-segments –office towers, logistics warehouses, business parks, shopping malls, serviced residences and hotels, as well as hospitals, medical centres and nursing homes. 
	 
	In the YTD, the five best-performing international REITs were: Sasseur REIT (+29.0%), First REIT (+27.2%), EC World REIT (+22.6%), Mapletree North Asia Commercial Trust (+21.2%), and Ascendas Hospitality Trust (+20.1%). The five averaged a YTD return of +24.0%.

Geographical Diversity of S-REITs

There are 34 Real Estate Investment Trusts (REITs), five stapled trusts and three property trusts listed on SGX. The sector has a combined market capitalisation of nearly S$100 billion, with Retail, Industrial and Office REITs making up the largest segments.

Of these 42 trusts, 19 have more than half their assets located in markets outside Singapore – including the US, UK, Australia, North Asia and ASEAN – and have a combined market capitalisation of more than S$30 billion.

Among the 19, single-market REITs include Fortune REIT (100% Hong Kong assets), Lippo Malls Indonesia Retail Trust (100% Indonesia), and Ascendas India Trust (100% India). Pure China plays are CapitaLand Retail China Trust, Sasseur REIT, EC World REIT, Dasin Retail Trust and BHG Retail Trust. There are two US-based trusts – Manulife US REIT and Keppel KBS US REIT – and two European-focused REITs – IREIT Global (100% German assets) and Cromwell European REIT (100% Europe).

Their property assets are equally diversified across the various sub-segments: 12 own office towers, logistics warehouses and business parks, while five own shopping malls. Three have serviced residences and hotels in their portfolios, while one owns healthcare assets in the form of hospitals, medical centres and nursing homes.

Two international REITs – Mapletree Logistics Trust and Mapletree North Asia Commercial Trust – are also in the benchmark Straits Times Index (STI) Reserve List. For a previously published Market Update on the five REITs in the STI Reserve List, click here. For the S-REITs March quarter earnings schedule, click here. For a chartbook on S-REITs and Property Trusts listed on SGX, click here.

The table below lists the 19 REITs that own more than half their assets in markets outside Singapore, with a detailed geographical breakdown by portfolio value, and sorted by market capitalisation.




			Name
			
			
			SGX Code
			
			
			Market Cap (S$M)
			
			
			Property Sub-Segment
			
			
			Geographical Breakdown by Portfolio Value (%)*
			
		


			MAPLETREE LOGISTICS TRUST
			
			
			M44U
			
			
			5,289
			
			
			Industrial
			
			
			32.1% SG, 30% HK, 12.1% JP, 8.1% CN, 8.3% AU, 5.9% KR, 2.8% MY, 0.7% VN
			
		


			MAPLETREE NORTH ASIA COMMERCIAL TRUST
			
			
			RW0U
			
			
			4,285
			
			
			Diversified
			
			
			64% HK, 25% CN, 11% JP
			
		


			FORTUNE REIT
			
			
			F25U
			
			
			3,343
			
			
			Retail
			
			
			100% HK
			
		


			ASCOTT RESIDENCE TRUST
			
			
			A68U
			
			
			2,607
			
			
			Hospitality
			
			
			27.3% EU, 20.3% SG, 12.8% JP, 12.5% US, 10% CN, 5.7% VN, 5.3% AU, 3% PH, 2.1% ID, 1% MY
			
		


			FRASERS LOGISTICS &amp; INDUSTRIAL TRUST
			
			
			BUOU
			
			
			2,369
			
			
			Industrial
			
			
			67% AU, 33% EU
			
		


			CROMWELL EUROPEAN REIT
			
			
			CNNU
			
			
			1,650
			
			
			Diversified
			
			
			100% EU
			
		


			CAPITALAND RETAIL CHINA TRUST
			
			
			AU8U
			
			
			1,511
			
			
			Retail
			
			
			100% CN
			
		


			MANULIFE US REIT
			
			
			BTOU
			
			
			1,508
			
			
			Office
			
			
			100% US
			
		


			FRASERS HOSPITALITY TRUST^#
			
			
			ACV
			
			
			1,405
			
			
			Hospitality
			
			
			35% SG, 33% AU, 14% UK, 8% JP, 6% MY, 4% GER
			
		


			ASCENDAS INDIA TRUST^
			
			
			CY6U
			
			
			1,278
			
			
			Diversified
			
			
			100% IN
			
		


			ASCENDAS HOSPITALITY TRUST^#
			
			
			Q1P
			
			
			1,033
			
			
			Hospitality
			
			
			36.7% AU, 36% JP, 10.3% KR, 17% SG
			
		


			SASSEUR REIT
			
			
			CRPU
			
			
			951
			
			
			Retail
			
			
			100% CN
			
		


			FIRST REIT
			
			
			AW9U
			
			
			839
			
			
			Health Care
			
			
			96.8% ID, 2.6% SG, 0.6% KR
			
		


			KEPPEL-KBS US REIT
			
			
			CMOU
			
			
			757
			
			
			Office
			
			
			100% US
			
		


			EC WORLD REIT
			
			
			BWCU
			
			
			651
			
			
			Industrial
			
			
			100% CN
			
		


			LIPPO MALLS INDONESIA RETAIL TRUST
			
			
			D5IU
			
			
			627
			
			
			Retail
			
			
			100% ID
			
		


			DASIN RETAIL TRUST^
			
			
			CEDU
			
			
			492
			
			
			Retail
			
			
			100% CN
			
		


			IREIT GLOBAL
			
			
			UD1U
			
			
			475
			
			
			Office
			
			
			100% GER
			
		


			BHG RETAIL REIT
			
			
			BMGU
			
			
			356
			
			
			Retail
			
			
			100% CN
			
		

*Source: Company filings

#stapled trust

^property trust

Best-Performing, Highest-Yielding International S-REITs

Among the 19, the five best performers in the 2019 year-to-date were: Sasseur REIT (+29.0%), First REIT (+27.2%), EC World REIT (+22.6%), Mapletree North Asia Commercial Trust (+21.2%), and Ascendas Hospitality Trust (+20.1%). The five have averaged a YTD total return of +24.0%, bringing their one-year and three-year total returns to +6.9% and +25.5% respectively.

The five highest-yielding trusts among them are: Lippo Malls Indonesia Retail Trust (8.8%), Keppel-KBS US REIT (8.6%), First REIT (8.3%), Dasin Retail Trust (8.2%), and EC World REIT (8.1%). These five have averaged a dividend indicated yield of 8.4%.

The tables below detail the 19 REITs that own more than half their assets in geographies outside Singapore, sorted by market capitalisation.




			Name
			
			
			Stock code
			
			
			Market Cap (S$M)
			
			
			Total Return YTD (%)
			
			
			Total Return 1Y (%)
			
			
			Total Return 3Y (%)
			
		


			MAPLETREE LOGISTICS TRUST
			
			
			M44U
			
			
			5,289
			
			
			19.2
			
			
			24.9
			
			
			66.4
			
		


			MAPLETREE NORTH ASIA COMMERCIAL TRUST
			
			
			RW0U
			
			
			4,285
			
			
			21.2
			
			
			28.2
			
			
			72.1
			
		


			FORTUNE REIT~
			
			
			F25U
			
			
			3,343
			
			
			14.3
			
			
			15.9
			
			
			36.7
			
		


			ASCOTT RESIDENCE TRUST
			
			
			A68U
			
			
			2,607
			
			
			14.0
			
			
			12.1
			
			
			30.6
			
		


			FRASERS LOGISTICS &amp; INDUSTRIAL TRUST
			
			
			BUOU
			
			
			2,369
			
			
			14.6
			
			
			21.2
			
			
			NA
			
		


			CROMWELL EUROPEAN REIT~
			
			
			CNNU
			
			
			1,650
			
			
			11.8
			
			
			-11.8
			
			
			NA
			
		


			CAPITALAND RETAIL CHINA TRUST
			
			
			AU8U
			
			
			1,511
			
			
			16.9
			
			
			2.4
			
			
			NA
			
		


			MANULIFE US REIT~
			
			
			BTOU
			
			
			1,508
			
			
			14.8
			
			
			4.5
			
			
			26.8
			
		


			FRASERS HOSPITALITY TRUST
			
			
			ACV
			
			
			1,405
			
			
			7.1
			
			
			7.6
			
			
			20.0
			
		


			ASCENDAS INDIA TRUST
			
			
			CY6U
			
			
			1,278
			
			
			17.6
			
			
			28.5
			
			
			62.8
			
		


			ASCENDAS HOSPITALITY TRUST
			
			
			Q1P
			
			
			1,033
			
			
			20.1
			
			
			24.5
			
			
			68.6
			
		


			SASSEUR REIT
			
			
			CRPU
			
			
			951
			
			
			29.0
			
			
			7.8
			
			
			NA
			
		


			FIRST REIT
			
			
			AW9U
			
			
			839
			
			
			27.2
			
			
			-0.3
			
			
			NA
			
		


			KEPPEL-KBS US REIT~
			
			
			CMOU
			
			
			757
			
			
			0.1
			
			
			-25.5
			
			
			-6.7
			
		


			EC WORLD REIT
			
			
			BWCU
			
			
			651
			
			
			22.6
			
			
			-25.7
			
			
			-13.0
			
		


			LIPPO MALLS INDONESIA RETAIL TRUST
			
			
			D5IU
			
			
			627
			
			
			16.1
			
			
			16.3
			
			
			NA
			
		


			DASIN RETAIL TRUST
			
			
			CEDU
			
			
			492
			
			
			6.0
			
			
			10.4
			
			
			NA
			
		


			IREIT GLOBAL~
			
			
			UD1U
			
			
			475
			
			
			7.4
			
			
			4.4
			
			
			29.8
			
		


			BHG RETAIL REIT
			
			
			BMGU
			
			
			356
			
			
			2.0
			
			
			-2.3
			
			
			11.2
			
		


			Average
			
			
			 
			
			
			 
			
			
			14.9
			
			
			7.5
			
			
			21.3
			
		

 




			Name
			
			
			SGX Code
			
			
			Market Cap (S$M)
			
			
			Div Ind Yield (%) 
			
			
			P/B (x)
			
		


			MAPLETREE LOGISTICS TRUST
			
			
			M44U
			
			
			5,289
			
			
			5.5
			
			
			1.1
			
		


			MAPLETREE NORTH ASIA COMMERCIAL TRUST
			
			
			RW0U
			
			
			4,285
			
			
			5.6
			
			
			1.0
			
		


			FORTUNE REIT~
			
			
			F25U
			
			
			3,343
			
			
			5.1
			
			
			0.6
			
		


			ASCOTT RESIDENCE TRUST
			
			
			A68U
			
			
			2,607
			
			
			6.1
			
			
			1.0
			
		


			FRASERS LOGISTICS &amp; INDUSTRIAL TRUST
			
			
			BUOU
			
			
			2,369
			
			
			6.2
			
			
			1.3
			
		


			CROMWELL EUROPEAN REIT~
			
			
			CNNU
			
			
			1,650
			
			
			8.0
			
			
			1.0
			
		


			CAPITALAND RETAIL CHINA TRUST
			
			
			AU8U
			
			
			1,511
			
			
			6.6
			
			
			1.0
			
		


			MANULIFE US REIT~
			
			
			BTOU
			
			
			1,508
			
			
			6.4
			
			
			1.0
			
		


			FRASERS HOSPITALITY TRUST
			
			
			ACV
			
			
			1,405
			
			
			6.1
			
			
			1.0
			
		


			ASCENDAS INDIA TRUST
			
			
			CY6U
			
			
			1,278
			
			
			5.8
			
			
			1.3
			
		


			ASCENDAS HOSPITALITY TRUST
			
			
			Q1P
			
			
			1,033
			
			
			6.3
			
			
			1.0
			
		


			SASSEUR REIT
			
			
			CRPU
			
			
			951
			
			
			7.5*
			
			
			0.8
			
		


			FIRST REIT
			
			
			AW9U
			
			
			839
			
			
			8.3
			
			
			1.0
			
		


			KEPPEL-KBS US REIT~
			
			
			CMOU
			
			
			757
			
			
			8.6
			
			
			0.9
			
		


			EC WORLD REIT
			
			
			BWCU
			
			
			651
			
			
			8.1
			
			
			0.8
			
		


			LIPPO MALLS INDONESIA RETAIL TRUST
			
			
			D5IU
			
			
			627
			
			
			8.8
			
			
			0.9
			
		


			DASIN RETAIL TRUST
			
			
			CEDU
			
			
			492
			
			
			8.2
			
			
			0.6
			
		


			IREIT GLOBAL~
			
			
			UD1U
			
			
			475
			
			
			7.7
			
			
			1.0
			
		


			BHG RETAIL REIT
			
			
			BMGU
			
			
			356
			
			
			7.3
			
			
			0.9
			
		


			Average
			
			
			 
			
			
			 
			
			
			7.0
			
			
			1.0
			
		

Source: Bloomberg &amp; StockFacts (data as of 26 April 2019)

*Sasseur REIT yield based on IPO prospectus data

~Fortune REIT is traded in HKD, Manulife US REIT and Keppel-KBS US REIT are traded in USD, IREIT Global and Cromwell European REIT are traded in EUR, with their SGD equivalents shown in tables.

Robust Investor Interest, Dovish Fed

Since late last year, analysts have noted revived investor interest in S-REITs, driven by a flight to safety amidst the uncertain outlook for US-Sino trade negotiations, the hunt for higher yields, and global market volatility. In the first quarter of 2019, S-REITs have received net institutional inflows totalling S$239.6 million. It was also the top net buy sector in January, according to SGX data.

The relatively strong fundamentals of S-REITs – about 80% have hedged at least 70% of their debt with fixed rates, while all are required by regulation to have a maximum gearing ratio of 45% – should also help mitigate the impact of the higher interest-rate environment.

Further boosting the sector were dovish signals from the US Federal Reserve during its most recent policy-setting meeting in March, which represented a pivot from its policy stance late last year. Fed officials now expect not to raise rates at all this year, after lifting interest rates four times over the course of 2018.

Following its two-day Federal Open Market Committee (FOMC) meeting later this week, the Fed is widely anticipated to hold interest rates steady. In recent weeks, officials have given no signal of any change to the US central bank’s benchmark overnight lending rate, currently set in a range of 2.25%-2.50%. Fed officials will not update their quarterly forecasts, including the “dot-plot” of interest-rate projections, until they next meet in June.

 



Mapletree North Asia Commercial Trust (MAGIC SP)

Frasers Logistics & Commercial Trust (FLT SP)

Five International S-REITs Returned 24% in YTD