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

Frasers Hospitality Trust / Equity Bottom-Up

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 <div class='content-caption'>Hospitality S-REITs with Singapore assets</div>
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<html><body>Twenty three S-Reits and property trusts have reported financial results or business updates this reporting season. All pure-play hospitality Reits with Singapore assets have reported, and they are: Ascott Residence Trust, CDL Hospitality Trusts, Far East Hospitality Trust, and Frasers Hospitality Trust. These 4 averaged 23.4 per cent total returns in the year to date. 
Most of the hospitality trusts with Singapore assets reported higher RevPAR (revenue per available room) in Q1 2022, due to growth in average daily rates (ADR) and occupancy. The trusts also expressed optimism for 2022 as they see recovery and reopening across their operating markets. 
Ascott Residence Trust noted that several countries saw restrictions tighten in January and February this year while most started to substantially ease border controls towards the end of Q1 2022. It reported a 22 per cent year-on-year increase in portfolio RevPAU (revenue per available unit) from S$55 to S$67 despite the spread of the Omicron variant. 
Its longer-stay properties contributed about 28 per cent of Q1 2022 gross profit, up from around 12 per cent in Q1 2021. As more countries reopen borders, the trust noted an uptick in international corporate and leisure bookings. Three of its properties (2 in Singapore, 1 in Australia) also transited from block bookings to welcoming public guests, in line with the respective countries’ reopening plans. In Singapore, its lyf one-north, which obtained TOP in January 2022, also achieved strong occupancy of over 85 per cent in Q1 2022. 
CDL Hospitality Trusts recorded RevPAR growth across majority of its portfolio. In Singapore, its Q1 2022 RevPAR rose 40.7 per cent year on year, driven by growth in average room rate. It noted that market demand is recovering, with staycations and corporate project groups still comprising the bulk of demand. Two of its Singapore hotels continue to operate as facilities used for isolation purposes and these contracts are expected to end by Q3 2022. The other 4 Singapore hotels are expected to be supported primarily by the return of international travellers, staycations, long-stay project groups, as well as the return of meeting groups, including major MICE events. 
Far East Hospitality Trust’s hotel portfolio reported 15.7 per cent higher RevPAR of S$59 in Q1 2022 from S$51 in Q1 2021 and 31.8 per cent higher ADR, despite a 8.4pp dip in average occupancy rate to 67.7 per cent due to the cessation of the government contract for isolation purposes at 3 of its hotels. 
Its serviced residences continued to demonstrate strong performance, recording higher Q1 2022 occupancy rate of 86.8 per cent, a 7.5 per cent year-on-year rise in ADR, and 24.3 per cent increase in RevPAU with support from long-stay corporate sources. 
Frasers Hospitality Trust reported higher gross revenue by 10.4 per cent year on year in H1 FY22 with the improved operating environment. Its Singapore portfolio recorded higher ADR and occupancy rate, which lifted its RevPAR by 15.3 per cent year on year in H1 FY22, mainly supported by long-stay business. The trust remains optimistic about international travel and aims to capture the recovery of hotel demand. REIT Watch is a weekly column on The Business Times,<a href="https://www.businesstimes.com.sg/companies-markets/hospitality-s-reits-see-higher-revpar-as-borders-reopen"> read </a>the original version.</body></html>


      
    
    Hospitality S-REITs with Singapore assets

Twenty three S-Reits and property trusts have reported financial results or business updates this reporting season. All pure-play hospitality Reits with Singapore assets have reported, and they are: Ascott Residence Trust, CDL Hospitality Trusts, Far East Hospitality Trust, and Frasers Hospitality Trust. These 4 averaged 23.4 per cent total returns in the year to date.  
Most of the hospitality trusts with Singapore assets reported higher RevPAR (revenue per available room) in Q1 2022, due to growth in average daily rates (ADR) and occupancy. The trusts also expressed optimism for 2022 as they see recovery and reopening across their operating markets.  
Ascott Residence Trust noted that several countries saw restrictions tighten in January and February this year while most started to substantially ease border controls towards the end of Q1 2022. It reported a 22 per cent year-on-year increase in portfolio RevPAU (revenue per available unit) from S$55 to S$67 despite the spread of the Omicron variant.  
Its longer-stay properties contributed about 28 per cent of Q1 2022 gross profit, up from around 12 per cent in Q1 2021. As more countries reopen borders, the trust noted an uptick in international corporate and leisure bookings. Three of its properties (2 in Singapore, 1 in Australia) also transited from block bookings to welcoming public guests, in line with the respective countries’ reopening plans. In Singapore, its lyf one-north, which obtained TOP in January 2022, also achieved strong occupancy of over 85 per cent in Q1 2022.  
CDL Hospitality Trusts recorded RevPAR growth across majority of its portfolio. In Singapore, its Q1 2022 RevPAR rose 40.7 per cent year on year, driven by growth in average room rate. It noted that market demand is recovering, with staycations and corporate project groups still comprising the bulk of demand. Two of its Singapore hotels continue to operate as facilities used for isolation purposes and these contracts are expected to end by Q3 2022. The other 4 Singapore hotels are expected to be supported primarily by the return of international travellers, staycations, long-stay project groups, as well as the return of meeting groups, including major MICE events.  
Far East Hospitality Trust’s hotel portfolio reported 15.7 per cent higher RevPAR of S$59 in Q1 2022 from S$51 in Q1 2021 and 31.8 per cent higher ADR, despite a 8.4pp dip in average occupancy rate to 67.7 per cent due to the cessation of the government contract for isolation purposes at 3 of its hotels.  
Its serviced residences continued to demonstrate strong performance, recording higher Q1 2022 occupancy rate of 86.8 per cent, a 7.5 per cent year-on-year rise in ADR, and 24.3 per cent increase in RevPAU with support from long-stay corporate sources.  
Frasers Hospitality Trust reported higher gross revenue by 10.4 per cent year on year in H1 FY22 with the improved operating environment. Its Singapore portfolio recorded higher ADR and occupancy rate, which lifted its RevPAR by 15.3 per cent year on year in H1 FY22, mainly supported by long-stay business. The trust remains optimistic about international travel and aims to capture the recovery of hotel demand.  REIT Watch is a weekly column on The Business Times, read the original version.


REIT Watch - Hospitality S-Reits see higher RevPAR as borders reopen