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

Kwang Hee Development Oriented Self Adm / Equity Bottom-Up

Kwang Hee Development Oriented Self Adm (140910 KS)

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<li>
SGX’s three largest industrial trusts by market cap are Ascendas REIT, Mapletree Logistics Trust and Mapletree Industrial Trust. In the last two weeks of April, MLT and MIT reported earnings for the three months ended 31 March 2020, while A-REIT, which opted to report its results on a half-yearly basis, provided a business update for the quarter. 
	 </li>
	<li>
For the March quarter, MLT and MIT unveiled a DPU of 2.048 and 2.850 Singapore cents, up 1.2% YoY and down 7.5% YoY respectively. 
	 </li>
	<li>A-REIT, MLT and MIT averaged an aggregate leverage ratio of 37.7% for the March quarter, vs an average 35.6% in the Dec quarter. MLT and MIT had the highest aggregate leverage ratios of 39.3% and 37.6% respectively.</li>
</ul>
 

Of the REITs on SGX, at least 10 are engaged in the acquisition, development, ownership, management and operation of industrial properties, data centres and logistics clusters, spanning Singapore, Malaysia, Vietnam, Japan, South Korea, China, Hong Kong, Australia, US, UK, Germany, and the Netherlands.

Among them, the three largest industrial trusts by market cap are: Ascendas REIT, Mapletree Logistics Trust and Mapletree Industrial Trust. In the last two weeks of April, Mapletree Logistics Trust and Mapletree Industrial Trust reported their earnings for the three months ended 31 March 2020, while A-REIT, which opted to report its financial results on a half-yearly basis, provided a business update for the quarter.

DPU Highlights  
For the three months ended 31 March 2020, Mapletree Logistics Trust unveiled a distribution per unit (DPU) of 2.048 Singapore cents, up 1.2% YoY. Mapletree Industrial Trust reported DPU declined 7.5% YoY to 2.850 Singapore cents, after tax-exempt income of S$6.6 million relating to distributions declared by joint ventures were withheld in the quarter for greater flexibility in cash management following COVID-19. Had the tax-exempt distributions been included, DPU would have been 3.15 cents, up 2.3% YoY.

Net property income for Mapletree Logistics Trust and Mapletree Industrial Trust rose 9.3% and 3.2% YoY to S$114.7 million and S$78.3 million respectively. Gross revenue for the quarter also gained 5.5% and 3.0% to S$128.1 million and S$101.8 million respectively.

Debt Profiles

For the March quarter, Ascendas REIT, Mapletree Logistics Trust and Mapletree Industrial Trust averaged an aggregate leverage ratio of 37.7%, compared with an average 35.6% in the December quarter. Mapletree Logistics Trust and Mapletree Industrial Trust had the highest aggregate leverage ratios of 39.3% and 37.6% respectively. The average ratio of S-REITs stood at 35.8% as of 30 April 2020.

Interest cover for the trio averaged 5.9 times in the March quarter, up marginally from 5.6 times in the December quarter, with Mapletree Industrial Trust chalking up the highest interest coverage ratio of 7.7 times.

As at 31 March 2020, A-REIT registered the highest total debt level of S$5.0 billion and the shortest weighted average debt tenure of 3.8 years, while Mapletree Industrial Trust had the lowest total debt level of S$1.4 billion and the longest weighted average debt tenure of 4.7 years.

<table class="table table-striped"><tbody>
<tr>
<td>
			Name
			</td>
			<td>
			Aggregate Leverage Ratio (%) as at 31 March 2020
			</td>
			<td>
			Aggregate Leverage Ratio (%) as at 31 Dec 2019
			</td>
			<td>
			Interest Coverage Ratio (x) as at 31 March 2020
			</td>
			<td>
			Interest Coverage Ratio (x) as at 31 Dec 2019
			</td>
		</tr>
<tr>
<td>
			ASCENDAS REIT
			</td>
			<td>
			36.2
			</td>
			<td>
			35.1
			</td>
			<td>
			5.0
			</td>
			<td>
			4.9
			</td>
		</tr>
<tr>
<td>
			MAPLETREE LOGISTICS TRUST
			</td>
			<td>
			39.3
			</td>
			<td>
			37.5
			</td>
			<td>
			4.9
			</td>
			<td>
			5.2
			</td>
		</tr>
<tr>
<td>
			MAPLETREE INDUSTRIAL TRUST
			</td>
			<td>
			37.6
			</td>
			<td>
			34.1
			</td>
			<td>
			7.7
			</td>
			<td>
			6.8
			</td>
		</tr>
<tr>
<td>
			Average
			</td>
			<td>
			37.7
			</td>
			<td>
			35.6
			</td>
			<td>
			5.9
			</td>
			<td>
			5.6
			</td>
		</tr>
</tbody></table>
 

<table class="table table-striped"><tbody>
<tr>
<td>
			Name
			</td>
			<td>
			Total Debt (S$M) as at 31 March 2020
			</td>
			<td>
			Total Debt (S$M) as at 31 Dec 2019
			</td>
			<td>
			Weighted Avg Debt Tenure (yrs) as at 31 March 2020
			</td>
			<td>
			Weighted Avg Debt Tenure (yrs) as at 31 Dec 2019
			</td>
		</tr>
<tr>
<td>
			ASCENDAS REIT
			</td>
			<td>
			4,981
			</td>
			<td>
			4,653
			</td>
			<td>
			3.8
			</td>
			<td>
			4.0
			</td>
		</tr>
<tr>
<td>
			MAPLETREE LOGISTICS TRUST
			</td>
			<td>
			3,550
			</td>
			<td>
			3,188
			</td>
			<td>
			4.1
			</td>
			<td>
			3.9
			</td>
		</tr>
<tr>
<td>
			MAPLETREE INDUSTRIAL TRUST
			</td>
			<td>
			1,434
			</td>
			<td>
			1,645
			</td>
			<td>
			4.7
			</td>
			<td>
			4.1
			</td>
		</tr>
<tr>
<td>
			Average
			</td>
			<td>
			3,322
			</td>
			<td>
			3,162
			</td>
			<td>
			4.2
			</td>
			<td>
			4.0
			</td>
		</tr>
</tbody></table>
 Source: Company data 
 

Outlook

Ascendas REIT

<ul>
<li>Overall portfolio occupancy rate improved QoQ to 91.7%, up from 90.9% as at 30 December 2019, thanks to the higher occupancy rate of 88.6%, vs 87.2% in end-December, in its Singapore portfolio, due to stronger demand for logistics space.</li>
	<li>For its overseas portfolio, occupancies were relatively stable at 97.3% in Australia, 92.9% in the US,  and 97.5% in the UK.</li>
	<li>Its portfolio achieved a positive rental reversion of 8.0% for renewed leases in multi-tenant buildings in 1Q FY2020.</li>
	<li>A-REIT’s liquidity position remains robust. In the event of an extended COVID-19 impact, it has in its reserves S$490 million, comprising S$290 million in cash and S$200 million in committed facilities, to cover any shortfall.</li>
	<li>It is uncertain when COVID-19 will be contained and businesses will return to normal. Realistically, more challenges and uncertainty are to be expected.</li>
</ul>
Click <a href="https://links.sgx.com/1.0.0/corporate-announcements/TG6V4TVRM2291V0I/Ascendas%20Reit%201Q%20FY2020%20Press%20Release.pdf">here</a> for full results release.

Mapletree Logistics Trust

<ul>
<li>For its top three core markets, all tenants remain fully operational in Hong Kong and Japan, while about 5% of its tenant base in Singapore is impacted. Tenants from retail, hospitality and travel industries, which account for about 10% of revenue, are the hardest hit. Those who serve essential daily needs, such as F&amp;B products, consumer staples and healthcare, continue to see healthy activity levels, and account for over 30% of MLT’s revenue.</li>
	<li>MLT’s diversified geographic presence and tenant trade sector mix provide resilience to the portfolio. To-date, overall occupancy levels have stayed relatively resilient at 98.0%, while rental rates have been stable.</li>
	<li>Debt due in the coming financial year amounts to S$242 million or 6% of total debt. Based on the available committed credit facilities of over S$700 million, it has more than sufficient resources to meet its maturing debt obligations.</li>
</ul>
Click <a href="/links.sgx.com/1.0.0/corporate-announcements/P0K4G3HBQGTB6RCO/20200423_MLT_4QFY1920%20PR-Final.pdf">here</a> for full results release.

Mapletree Industrial Trust

<ul>
<li>Average Overall Portfolio occupancy for the March quarter increased to 91.5% from 90.9% in the preceding quarter, due to the Singapore portfolio. The North American portfolio occupancy also improved following addition of 10 powered shell data centres held under Mapletree Rosewood Data Centre Trust, which were 100% leased.</li>
	<li>MIT will support its tenants in Singapore with a COVID-19 Assistance and Relief Programme of up to S$13.7 million. This is in addition to approximately S$10.5 million property tax rebates of 100% and 30% for qualifying commercial premises and non-residential properties respectively, which will be fully passed on to all tenants in Singapore.</li>
	<li>About 55% of MIT’s Singapore Portfolio (or 45% of the overall portfolio) are SME tenants. If the pandemic drags on, these tenants may seek relief under the COVID-19 (Temporary Measures) Act. As at 31 March 2020, the rental arrears ratio remained stable at 0.2% of the previous 12 months’ gross revenue. This ratio will increase if more SME tenants seek temporary relief under the Act.</li>
	<li>MIT’s large diversified tenant base with low dependence on any single tenant or trade sector will continue to underpin its resilience. The long leases with high-quality tenants in MIT’s data centres in Singapore and North America, comprising about 31.6% of its portfolio, will provide an added boost.</li>
</ul>
Click <a href="https://links.sgx.com/1.0.0/corporate-announcements/ZIBZG8N0YERBF9Q1/20200427_4QFY19_Press%20Release.pdf">here</a> for full results release.
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SGX’s three largest industrial trusts by market cap are Ascendas REIT, Mapletree Logistics Trust and Mapletree Industrial Trust. In the last two weeks of April, MLT and MIT reported earnings for the three months ended 31 March 2020, while A-REIT, which opted to report its results on a half-yearly basis, provided a business update for the quarter. 
	 
	
For the March quarter, MLT and MIT unveiled a DPU of 2.048 and 2.850 Singapore cents, up 1.2% YoY and down 7.5% YoY respectively. 
	 
	A-REIT, MLT and MIT averaged an aggregate leverage ratio of 37.7% for the March quarter, vs an average 35.6% in the Dec quarter. MLT and MIT had the highest aggregate leverage ratios of 39.3% and 37.6% respectively.

 

Of the REITs on SGX, at least 10 are engaged in the acquisition, development, ownership, management and operation of industrial properties, data centres and logistics clusters, spanning Singapore, Malaysia, Vietnam, Japan, South Korea, China, Hong Kong, Australia, US, UK, Germany, and the Netherlands.

Among them, the three largest industrial trusts by market cap are: Ascendas REIT, Mapletree Logistics Trust and Mapletree Industrial Trust. In the last two weeks of April, Mapletree Logistics Trust and Mapletree Industrial Trust reported their earnings for the three months ended 31 March 2020, while A-REIT, which opted to report its financial results on a half-yearly basis, provided a business update for the quarter.

DPU Highlights   
For the three months ended 31 March 2020, Mapletree Logistics Trust unveiled a distribution per unit (DPU) of 2.048 Singapore cents, up 1.2% YoY. Mapletree Industrial Trust reported DPU declined 7.5% YoY to 2.850 Singapore cents, after tax-exempt income of S$6.6 million relating to distributions declared by joint ventures were withheld in the quarter for greater flexibility in cash management following COVID-19. Had the tax-exempt distributions been included, DPU would have been 3.15 cents, up 2.3% YoY.

Net property income for Mapletree Logistics Trust and Mapletree Industrial Trust rose 9.3% and 3.2% YoY to S$114.7 million and S$78.3 million respectively. Gross revenue for the quarter also gained 5.5% and 3.0% to S$128.1 million and S$101.8 million respectively.

Debt Profiles

For the March quarter, Ascendas REIT, Mapletree Logistics Trust and Mapletree Industrial Trust averaged an aggregate leverage ratio of 37.7%, compared with an average 35.6% in the December quarter. Mapletree Logistics Trust and Mapletree Industrial Trust had the highest aggregate leverage ratios of 39.3% and 37.6% respectively. The average ratio of S-REITs stood at 35.8% as of 30 April 2020.

Interest cover for the trio averaged 5.9 times in the March quarter, up marginally from 5.6 times in the December quarter, with Mapletree Industrial Trust chalking up the highest interest coverage ratio of 7.7 times.

As at 31 March 2020, A-REIT registered the highest total debt level of S$5.0 billion and the shortest weighted average debt tenure of 3.8 years, while Mapletree Industrial Trust had the lowest total debt level of S$1.4 billion and the longest weighted average debt tenure of 4.7 years.




			Name
			
			
			Aggregate Leverage Ratio (%) as at 31 March 2020
			
			
			Aggregate Leverage Ratio (%) as at 31 Dec 2019
			
			
			Interest Coverage Ratio (x) as at 31 March 2020
			
			
			Interest Coverage Ratio (x) as at 31 Dec 2019
			
		


			ASCENDAS REIT
			
			
			36.2
			
			
			35.1
			
			
			5.0
			
			
			4.9
			
		


			MAPLETREE LOGISTICS TRUST
			
			
			39.3
			
			
			37.5
			
			
			4.9
			
			
			5.2
			
		


			MAPLETREE INDUSTRIAL TRUST
			
			
			37.6
			
			
			34.1
			
			
			7.7
			
			
			6.8
			
		


			Average
			
			
			37.7
			
			
			35.6
			
			
			5.9
			
			
			5.6
			
		

 




			Name
			
			
			Total Debt (S$M) as at 31 March 2020
			
			
			Total Debt (S$M) as at 31 Dec 2019
			
			
			Weighted Avg Debt Tenure (yrs) as at 31 March 2020
			
			
			Weighted Avg Debt Tenure (yrs) as at 31 Dec 2019
			
		


			ASCENDAS REIT
			
			
			4,981
			
			
			4,653
			
			
			3.8
			
			
			4.0
			
		


			MAPLETREE LOGISTICS TRUST
			
			
			3,550
			
			
			3,188
			
			
			4.1
			
			
			3.9
			
		


			MAPLETREE INDUSTRIAL TRUST
			
			
			1,434
			
			
			1,645
			
			
			4.7
			
			
			4.1
			
		


			Average
			
			
			3,322
			
			
			3,162
			
			
			4.2
			
			
			4.0
			
		

 Source: Company data 
 

Outlook

Ascendas REIT


Overall portfolio occupancy rate improved QoQ to 91.7%, up from 90.9% as at 30 December 2019, thanks to the higher occupancy rate of 88.6%, vs 87.2% in end-December, in its Singapore portfolio, due to stronger demand for logistics space.
	For its overseas portfolio, occupancies were relatively stable at 97.3% in Australia, 92.9% in the US,  and 97.5% in the UK.
	Its portfolio achieved a positive rental reversion of 8.0% for renewed leases in multi-tenant buildings in 1Q FY2020.
	A-REIT’s liquidity position remains robust. In the event of an extended COVID-19 impact, it has in its reserves S$490 million, comprising S$290 million in cash and S$200 million in committed facilities, to cover any shortfall.
	It is uncertain when COVID-19 will be contained and businesses will return to normal. Realistically, more challenges and uncertainty are to be expected.

Click here for full results release.

Mapletree Logistics Trust


For its top three core markets, all tenants remain fully operational in Hong Kong and Japan, while about 5% of its tenant base in Singapore is impacted. Tenants from retail, hospitality and travel industries, which account for about 10% of revenue, are the hardest hit. Those who serve essential daily needs, such as F&amp;B products, consumer staples and healthcare, continue to see healthy activity levels, and account for over 30% of MLT’s revenue.
	MLT’s diversified geographic presence and tenant trade sector mix provide resilience to the portfolio. To-date, overall occupancy levels have stayed relatively resilient at 98.0%, while rental rates have been stable.
	Debt due in the coming financial year amounts to S$242 million or 6% of total debt. Based on the available committed credit facilities of over S$700 million, it has more than sufficient resources to meet its maturing debt obligations.

Click here for full results release.

Mapletree Industrial Trust


Average Overall Portfolio occupancy for the March quarter increased to 91.5% from 90.9% in the preceding quarter, due to the Singapore portfolio. The North American portfolio occupancy also improved following addition of 10 powered shell data centres held under Mapletree Rosewood Data Centre Trust, which were 100% leased.
	MIT will support its tenants in Singapore with a COVID-19 Assistance and Relief Programme of up to S$13.7 million. This is in addition to approximately S$10.5 million property tax rebates of 100% and 30% for qualifying commercial premises and non-residential properties respectively, which will be fully passed on to all tenants in Singapore.
	About 55% of MIT’s Singapore Portfolio (or 45% of the overall portfolio) are SME tenants. If the pandemic drags on, these tenants may seek relief under the COVID-19 (Temporary Measures) Act. As at 31 March 2020, the rental arrears ratio remained stable at 0.2% of the previous 12 months’ gross revenue. This ratio will increase if more SME tenants seek temporary relief under the Act.
	MIT’s large diversified tenant base with low dependence on any single tenant or trade sector will continue to underpin its resilience. The long leases with high-quality tenants in MIT’s data centres in Singapore and North America, comprising about 31.6% of its portfolio, will provide an added boost.

Click here for full results release.



March Quarter Earnings of SGX’s Largest Industrial REITs