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





Global rotation into comparatively more cyclical Sectors sensitive to trade developments saw Singapore’s 35 REITs and six stapled trusts average just a 1% total return in October, taking their average total return for the first 10 months of 2019 to 24%.    
	 
	
In October, five REITs issued S$940 million in new units pursuant to secondary fund raising activities. This followed placements by Mapletree Commercial Trust and Keppel Pacific Oak US REIT and rights issue offerings by Keppel DC REIT, Manulife US REIT &amp; ESR-REIT. 
	 
	The five REITs that maintained the most increases in their relative trading turnover and generated positive total returns in October were Manulife US REIT, Mapletree Commercial REIT, Ascott Residence Trust, Mapletree Industrial Trust and IREIT Global.

 

Singapore’s 35 REITs and six stapled trusts averaged a 1% total return in October, taking their average total return for the first 10 months of 2019 to 24%. 

Globally, REITs have outpaced benchmarks this year, with the trend of lower interest rates for much of 2019 supporting the comparative appeal of REIT yields to investors, while at the same time reducing REIT managers’ outlook for debt servicing costs. However, as discussed here, during October the 10 year UST yields did move higher over the final three weeks of October, bouncing from 1.50% lows in the first week of October to end the month at 1.69%.

 

Five S-REITs Listed S$940 Million in New Units in October

Coinciding with opportunities to grow their property portfolios, S-REITs have continued to raise significant capital through completion of secondary fundraising activities in October. The S-REITs saw approximately S$560 million raised in placements and S$380 million raised via rights issues that saw new units commence trading in October.

October saw the trading of new units in Mapletree Commercial Trust and Keppel Pacific Oak US REIT that were both pursuant to secondary fundraising through placements. These placements saw Mapletree Commercial Trust raise S$458 million and Keppel Pacific Oak US REIT raise US$76 million (S$103 million).

New units also commenced trading for Keppel DC REIT, Manulife US REIT and ESR-REIT pursuant to rights issues. These rights issues saw Keppel DC REIT raise S$243 million, Manulife US REIT raise US$63 million (S$86 million) and ESR-REIT raise S$50 million.

In addition, Mapletree Logistics Trust launched and closed a private placement raising S$250 million in October, that was over 13 times covered. The trading of new units in Mapletree Logistics Trust commenced on November 1 and hence is additional to the aforementioned listing of S$940 million in new units following REIT secondary fundraising in October. Ascendas REIT also launched a S$1.3 billion rights issue on November 1 – more details can be found here.

 

October S-REIT Highlights 

In Singapore the current 35 REITs and six stapled trusts listed for trading in Singapore have seen net institutional inflows of S$210 million over the first 10 months of 2019. 
 


Within the Sector, Ascott Residence Trust, Ascendas REIT, CapitaLand Commercial Trust, Frasers Logistics &amp; Industrial Trust and Ascendas Hospitality Trust recorded the highest net institutional inflows for the first 10 months of 2019. 
	 
	Ascott REIT was also amongst the five REITs that generated positive returns for October and also saw the biggest increase in their October trading turnover relative to the past 10 months of 2019.  The other four REITs were Manulife US REIT, Mapletree Commercial REIT, Mapletree Industrial Trust and IREIT Global. 
	 
	IREIT Global was also amongst the five top performing REITs in October, along with SPH REIT, Far East Hospitality Trust, Ascendas Hospitality Trust and Mapletree Logistics Trust. 
	 
	Lendlease Commercial REIT, with a portfolio consisting of the three-building Sky Complex in Milan and 313 @ Somerset, listed on SGX on October 2. The REIT listed with 13 cornerstone investors including AEW Asia Pte Ltd, funds and accounts under management by investment management subsidiaries of BlackRock, Inc, Fullerton Fund Management Company Ltd, Lion Global Investors Limited, Nikko Asset Management Asia Limited, Principal Asset Management (S) Pte Ltd and TMB Asset Management Co., Ltd 
	 

The 35 REITs and six Stapled Trusts are tabled below and sort by market capitalisation, which totalled S$108 billion as of October 31. The average price-to-book (“P/B”) ratio for Singapore’s current 35 REITs and six stapled trusts is 1.08x, up from the combined five year average of 1.02x.




			REIT or Stapled Trust 
			
			
			SGX Code
			
			
			Mkt Cap S$M
			
			
			Oct Total Return %
			
			
			10M Total Return %
			
			
			Oct Net Insti Inflow S$M
			
			
			10M Net Insti Inflow S$M
			
			
			REIT Sector Oct T/O Rank 
			
			
			REIT Sector YTD T/O Rank
			
		


			ASCENDAS REAL ESTATE INV TRT
			
			
			A17U
			
			
			9,867
			
			
			1.6
			
			
			26.7
			
			
			-8
			
			
			55
			
			
			1
			
			
			1
			
		


			CAPITALAND MALL TRUST
			
			
			C38U
			
			
			9,369
			
			
			-2.3
			
			
			17.1
			
			
			-23
			
			
			-18
			
			
			3
			
			
			3
			
		


			CAPITALAND COMMERCIAL TRUST
			
			
			C61U
			
			
			7,907
			
			
			-1.0
			
			
			22.7
			
			
			1
			
			
			51
			
			
			5
			
			
			2
			
		


			MAPLETREE COMMERCIAL TRUST
			
			
			N2IU
			
			
			7,215
			
			
			3.3
			
			
			48.7
			
			
			-3
			
			
			3
			
			
			2
			
			
			5
			
		


			MAPLETREE LOGISTICS TRUST
			
			
			M44U
			
			
			6,115
			
			
			5.4
			
			
			41.2
			
			
			1
			
			
			38
			
			
			4
			
			
			4
			
		


			MAPLETREE INDUSTRIAL TRUST
			
			
			ME8U
			
			
			5,611
			
			
			4.9
			
			
			41.1
			
			
			1
			
			
			19
			
			
			7
			
			
			8
			
		


			SUNTEC REIT
			
			
			T82U
			
			
			5,210
			
			
			-0.9
			
			
			10.1
			
			
			-22
			
			
			-35
			
			
			6
			
			
			6
			
		


			KEPPEL REIT
			
			
			K71U
			
			
			4,116
			
			
			-2.9
			
			
			11.1
			
			
			-9
			
			
			38
			
			
			12
			
			
			11
			
		


			MNACT
			
			
			RW0U
			
			
			4,080
			
			
			-3.0
			
			
			17.4
			
			
			-22
			
			
			5
			
			
			9
			
			
			7
			
		


			KEPPEL DC REIT
			
			
			AJBU
			
			
			3,259
			
			
			4.7
			
			
			59.6
			
			
			-3
			
			
			11
			
			
			11
			
			
			10
			
		


			FRASERS CENTREPOINT TRUST
			
			
			J69U
			
			
			3,073
			
			
			1.4
			
			
			33.2
			
			
			3
			
			
			13
			
			
			15
			
			
			12
			
		


			ASCOTT RESIDENCE TRUST
			
			
			A68U
			
			
			3,004
			
			
			4.5
			
			
			35.7
			
			
			11
			
			
			76
			
			
			14
			
			
			13
			
		


			SPH REIT
			
			
			SK6U
			
			
			2,962
			
			
			5.9
			
			
			20.1
			
			
			4
			
			
			6
			
			
			27
			
			
			29
			
		


			OUE COMMERCIAL REIT
			
			
			TS0U
			
			
			2,904
			
			
			0.0
			
			
			24.4
			
			
			7
			
			
			25
			
			
			29
			
			
			32
			
		


			FRASERS LOGISTICS &amp; IND TRUST
			
			
			BUOU
			
			
			2,834
			
			
			1.6
			
			
			28.7
			
			
			4
			
			
			45
			
			
			13
			
			
			9
			
		


			CDL HOSPITALITY TRUSTS*
			
			
			J85
			
			
			1,987
			
			
			0.0
			
			
			18.8
			
			
			-2
			
			
			-2
			
			
			17
			
			
			16
			
		


			PARKWAYLIFE REIT
			
			
			C2PU
			
			
			1,978
			
			
			4.5
			
			
			28.6
			
			
			3
			
			
			14
			
			
			26
			
			
			24
			
		


			CROMWELL EUROPEAN REIT
			
			
			CNNU
			
			
			1,948
			
			
			0.6
			
			
			20.0
			
			
			-1
			
			
			-22
			
			
			25
			
			
			19
			
		


			ESR-REIT
			
			
			J91U
			
			
			1,863
			
			
			3.1
			
			
			13.3
			
			
			12
			
			
			14
			
			
			20
			
			
			15
			
		


			MANULIFE US REAL ESTATE INV
			
			
			BTOU
			
			
			1,858
			
			
			1.2
			
			
			29.7
			
			
			0
			
			
			1
			
			
			19
			
			
			20
			
		


			CAPITALAND RETAIL CHINA TRUST
			
			
			AU8U
			
			
			1,832
			
			
			-0.7
			
			
			20.6
			
			
			-6
			
			
			-9
			
			
			21
			
			
			17
			
		


			STARHILL GLOBAL REIT
			
			
			P40U
			
			
			1,614
			
			
			-0.7
			
			
			13.8
			
			
			-5
			
			
			33
			
			
			30
			
			
			23
			
		


			FRASERS COMMERCIAL TRUST
			
			
			ND8U
			
			
			1,497
			
			
			3.4
			
			
			27.4
			
			
			-3
			
			
			8
			
			
			18
			
			
			14
			
		


			FAR EAST HOSPITALITY TRUST*
			
			
			Q5T
			
			
			1,405
			
			
			5.8
			
			
			25.9
			
			
			5
			
			
			5
			
			
			28
			
			
			26
			
		


			FRASERS HOSPITALITY TRUST*
			
			
			ACV
			
			
			1,392
			
			
			2.8
			
			
			8.3
			
			
			0
			
			
			-8
			
			
			34
			
			
			35
			
		


			ASCENDAS HOSPITALITY TRUST*
			
			
			Q1P
			
			
			1,308
			
			
			5.5
			
			
			54.7
			
			
			11
			
			
			45
			
			
			22
			
			
			25
			
		


			PRIME US REIT
			
			
			OXMU
			
			
			1,169
			
			
			-1.6
			
			
			N/A
			
			
			0
			
			
			3
			
			
			36
			
			
			41
			
		


			LENDLEASE GLOBAL COMMERCIAL
			
			
			JYEU
			
			
			1,110
			
			
			N/A
			
			
			N/A
			
			
			-21
			
			
			-21
			
			
			8
			
			
			28
			
		


			AIMS APAC REIT
			
			
			O5RU
			
			
			955
			
			
			-4.9
			
			
			8.8
			
			
			-40
			
			
			-26
			
			
			10
			
			
			22
			
		


			SASSEUR REIT
			
			
			CRPU
			
			
			949
			
			
			0.0
			
			
			33.6
			
			
			-3
			
			
			-27
			
			
			32
			
			
			31
			
		


			KEPPEL PACIFIC OAK US REIT
			
			
			CMOU
			
			
			938
			
			
			-3.6
			
			
			33.6
			
			
			-5
			
			
			-5
			
			
			23
			
			
			30
			
		


			FIRST REAL ESTATE INVT TRUST
			
			
			AW9U
			
			
			811
			
			
			1.0
			
			
			10.3
			
			
			-7
			
			
			-69
			
			
			24
			
			
			21
			
		


			CACHE LOGISTICS TRUST
			
			
			K2LU
			
			
			784
			
			
			-2.0
			
			
			10.6
			
			
			-2
			
			
			3
			
			
			33
			
			
			27
			
		


			LIPPO MALLS INDONESIA RETAIL
			
			
			D5IU
			
			
			695
			
			
			4.3
			
			
			40.7
			
			
			0
			
			
			-4
			
			
			38
			
			
			36
			
		


			ARA US HOSPITALITY TRUST*
			
			
			XZL
			
			
			667
			
			
			-3.3
			
			
			N/A
			
			
			1
			
			
			25
			
			
			40
			
			
			37
			
		


			EAGLE HOSPITALITY TRUST*
			
			
			LIW
			
			
			662
			
			
			-17.7
			
			
			N/A
			
			
			-24
			
			
			-49
			
			
			16
			
			
			18
			
		


			SOILBUILD BUSINESS SPACE REIT
			
			
			SV3U
			
			
			636
			
			
			-3.9
			
			
			-5.5
			
			
			0
			
			
			-4
			
			
			31
			
			
			34
			
		


			EC WORLD REIT
			
			
			BWCU
			
			
			582
			
			
			0.0
			
			
			12.4
			
			
			-4
			
			
			-33
			
			
			35
			
			
			33
			
		


			IREIT GLOBAL
			
			
			UD1U
			
			
			506
			
			
			5.3
			
			
			18.3
			
			
			1
			
			
			10
			
			
			37
			
			
			40
			
		


			SABANA SHARIAH COMP IND REIT
			
			
			M1GU
			
			
			484
			
			
			1.1
			
			
			23.8
			
			
			0
			
			
			17
			
			
			39
			
			
			39
			
		


			BHG RETAIL REIT
			
			
			BMGU
			
			
			355
			
			
			0.0
			
			
			4.3
			
			
			0
			
			
			-20
			
			
			41
			
			
			38
			
		

 
			 
			
			Average
			
			
			0.6
			
			
			24.0
			
			 
			 
			 
			 
		

*Note Stapled Trust. The expected date for commencement of trading of Ascott REIT-BT Stapled Units (on a stapled basis) and consideration units is 2 January 2020. 
Source: SGX, Bloomberg, Refinitiv, SGX StockFacts (Data as of 31 October 2019)

 



Capitaland Integrated Commercial Trust (CICT SP)

Mapletree Pan Asia Commercial Trust (MCT SP)

S-REITs Held Gains, Issued $940 million in New Units in October 