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

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 <div class='content-caption'>Rebound in flows</div>
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The iEdge S-REIT Index ended the third quarter of 2021 relatively flat with 0.2 per cent total returns, in line with global REIT markets which declined towards the later half of the quarter due to steepening of yield curves. This brings the index year-to-date total returns to 4.5 per cent.

There are 20 trusts which outperformed the index in 3Q2021, including ten of the 11 trusts that entered the FTSE EPRA Nareit Global Developed Index following the most recent September review. The top five performing trusts, which were all recent index inclusions, were: OUE Commercial REIT (14.2 per cent), Starhill Global REIT (12.4 per cent), ARA LOGOS Logistics Trust (10.1 per cent), Far East Hospitality Trust (9.9 per cent), and ESR-REIT (9.3 per cent). These five trusts received net institutional inflows of S$192 million and net retail outflows of S$89 million this quarter.

In the year-to-date, the five best performing trusts where: ARA LOGOS Logistics Trust (60.2 per cent), Sabana REIT (34.3 per cent), Starhill Global REIT (32.6 per cent), Keppel Pacific Oak US REIT (28.4 per cent) and First REIT (27.8 per cent). These five trusts received net institutional inflows of S$132 million and net retail outflows of S$66 million in the year-to-date. 
Overall, institutional investors were net buyers of the S-Reits and property trusts sector in the third quarter, after being net sellers in the first half of 2021.

The sector received three consecutive months of net institutional inflows from July to September 2021, amounting to S$270 million.

Retail investors continue to be net buyers of the sector since the start of the year, with the exception of July, which saw net retail outflows of S$95 million. In the year to date, retail investors net buying activities in the sector totalled S$917 million. 
There are four trusts that received net inflows from both institutional and retail investors in the year-to-date: Frasers Logistics &amp; Commercial Trust (institutional: S$16.4 million; retail: S$8.5 million) , Far East Hospitality Trust (institutional: S$8.2 million; retail: S$1.7 million), Keppel Pacific Oak US REIT (institutional: S$5.5 million; retail: S$9.7 million) and Prime US REIT (institutional: S$0.5 million; retail: S$12.8 million).

Top three performing sub-sectors for the 3Q2021 period are Industrial REITs (3.3 per cent total returns), Specialised REITs (2.9 per cent), and Diversified REITs (2.0 per cent). Top three performing sub-sectors in the year-to-date are Healthcare REITs (25.4 per cent total returns), Industrial REITs (21.0 per cent), and Office REITs (11.8 per cent). REIT Watch is a weekly column on The Business Times,<a href="https://www.businesstimes.com.sg/companies-markets/china-focused-s-reits-resilient-amid-onshore-property-focus"> </a><a href="https://www.businesstimes.com.sg/companies-markets/third-quarter-wrap-sees-institutional-investors-return-to-s-reits">read </a>the original version.
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    Rebound in flows


The iEdge S-REIT Index ended the third quarter of 2021 relatively flat with 0.2 per cent total returns, in line with global REIT markets which declined towards the later half of the quarter due to steepening of yield curves. This brings the index year-to-date total returns to 4.5 per cent.

There are 20 trusts which outperformed the index in 3Q2021, including ten of the 11 trusts that entered the FTSE EPRA Nareit Global Developed Index following the most recent September review. The top five performing trusts, which were all recent index inclusions, were: OUE Commercial REIT (14.2 per cent), Starhill Global REIT (12.4 per cent), ARA LOGOS Logistics Trust (10.1 per cent), Far East Hospitality Trust (9.9 per cent), and ESR-REIT (9.3 per cent). These five trusts received net institutional inflows of S$192 million and net retail outflows of S$89 million this quarter.

In the year-to-date, the five best performing trusts where: ARA LOGOS Logistics Trust (60.2 per cent), Sabana REIT (34.3 per cent), Starhill Global REIT (32.6 per cent), Keppel Pacific Oak US REIT (28.4 per cent) and First REIT (27.8 per cent). These five trusts received net institutional inflows of S$132 million and net retail outflows of S$66 million in the year-to-date.  
Overall, institutional investors were net buyers of the S-Reits and property trusts sector in the third quarter, after being net sellers in the first half of 2021.

The sector received three consecutive months of net institutional inflows from July to September 2021, amounting to S$270 million.

Retail investors continue to be net buyers of the sector since the start of the year, with the exception of July, which saw net retail outflows of S$95 million. In the year to date, retail investors net buying activities in the sector totalled S$917 million.  
There are four trusts that received net inflows from both institutional and retail investors in the year-to-date: Frasers Logistics &amp; Commercial Trust (institutional: S$16.4 million; retail: S$8.5 million) , Far East Hospitality Trust (institutional: S$8.2 million; retail: S$1.7 million), Keppel Pacific Oak US REIT (institutional: S$5.5 million; retail: S$9.7 million) and Prime US REIT (institutional: S$0.5 million; retail: S$12.8 million).

Top three performing sub-sectors for the 3Q2021 period are Industrial REITs (3.3 per cent total returns), Specialised REITs (2.9 per cent), and Diversified REITs (2.0 per cent). Top three performing sub-sectors in the year-to-date are Healthcare REITs (25.4 per cent total returns), Industrial REITs (21.0 per cent), and Office REITs (11.8 per cent).  REIT Watch is a weekly column on The Business Times, read the original version.



REIT Watch - Third quarter wrap sees institutional investors return to S-Reits