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





Recent moves of the S-REIT Sector have been aligned with global REITs. In-line with the Bloomberg World REIT Index, the S-REITs have averaged a marginal return in the 2021 YTD, and an 8% decline over the past 12 months.  
	 
	
The STI Reserve List (in order of highest market cap) are Frasers Logistics &amp; Commercial Trust, Keppel REIT, Suntec REIT, Frasers Centrepoint Trust and NetLink NBN Trust. Should the Jardine Strategic amalgamation resolution be approved at the EGM, the STI Reserve stock with the highest market cap at the close two days prior to the Index deletion of Jardine Strategic will join the STI.  
	 
	
The strongest performers of the S-REIT Sector in the 2021 YTD have been ARA Logos Logistics Trust Ascendas India Trust, ARA US Hospitality Trust, PLife REIT and Sabana Shariah Compliant Industrial REIT, with all five trusts generating double digit gains.  
	 
	The five REITs that maintained the highest yields and have generated gains over the past 12 months include EC World REIT, Sasseur REIT, Soilbuild Business Space REIT, ARA Logos Logistics Trust and Frasers Logistic &amp; Commercial Trust. The five REITs average a 6.9% yield. 

 

Key Singapore Sectors Taking Global Cues  
Amidst recent equity rotations and rebalancing, higher 10-year UST Yields are coinciding with global bank stocks outpacing global REITs. With the longer end of the US 2/10 Yield Curve increasingly pricing an eventual economic normalisation, the Bloomberg World Bank Index has gained 15% versus the Bloomberg World REITs Index gaining 1% in the 2021 year to 5 March.  
Key drivers over the past nine weeks are the decline in the COVID-19 infection rates and the pace of the global vaccine rollout. Globally the COVID-19 vaccine doses administered as of 6 March were at 300 million, up from 240 million at the end of February and up from 100 million at the end of January. Meanwhile the potential for new contagious strains of the virus remain a key social, economic and market risk.   
With COVID-19 the overarching market driver, that brings similar Sector impacts wherever stocks may be listed, most big Sector moves have been highly correlated over the past 12 months. For instance:

 


Over the past 12 months, the trio of DBS Group Holdings, Oversea-Chinese Banking Corporation and United Overseas Bank averaged 17% total returns, in-line with the 17% total return of the Bloomberg World Bank Index in SGD terms. 
	 
	Likewise, the Bloomberg World REITs Index generated a 7% decline in total return over the period, which was also the median total return of the REITs, Stapled Trusts and two Business Trusts that make up the S-REIT Sector. The 42 trusts of the S-REIT Sector that are listed for trading have averaged an 8% decline in total return, whilst the iEdge S-REIT Index also declined 8% over the period.

 

This has brought the average total return of the trusts that make up the S-REIT Sector to 1.7%, with a median return of 0.4% in the 2021 year to 5 March. The average 12 month trailing dividend yield of the Sector is 6.2%, with the median yield of 5.6%. The five REITs that maintained the highest yields and have generated gains over the past 12 months include EC World REIT, Sasseur REIT, Soilbuild Business Space REIT, ARA Logos Logistics Trust and Frasers Logistic &amp; Commercial Trust. These five REITs including the eight REITs that generated gains over the past 12 months on a total return basis are tabled below.




			Strongest Performing Trusts of the S-REIT Sector over past 12 months
			
			
			Stock 
			code
			
			
			Mkt Cap S$M
			
			
			Type of Property 
			Sub-segment
			
			
			2021 YTD (%)
			
			
			Past 12 Months Total Return (%)
			
			
			Div. Yield (%)
			
		


			PARKWAYLIFE REIT
			
			
			C2PU
			
			
			2571
			
			
			Health Care
			
			
			10.8
			
			
			21.5
			
			
			3.4
			
		


			SOILBUILD BUSINESS SPACE REIT
			
			
			SV3U
			
			
			683
			
			
			Diversified
			
			
			2.3
			
			
			19.0
			
			
			7.4
			
		


			SASSEUR REIT
			
			
			CRPU
			
			
			1044
			
			
			Retail
			
			
			5.5
			
			
			18.3
			
			
			7.4
			
		


			EC WORLD REIT
			
			
			BWCU
			
			
			596
			
			
			Industrial
			
			
			3.5
			
			
			11.5
			
			
			7.5
			
		


			FRASERS LOGISTICS &amp; COMMERCIAL TRUST
			
			
			BUOU
			
			
			4594
			
			
			Diversified
			
			
			-5.0
			
			
			10.9
			
			
			5.2
			
		


			ARA LOGOS LOGISTICS TRUST
			
			
			K2LU
			
			
			895
			
			
			Industrial
			
			
			18.0
			
			
			10.4
			
			
			7.3
			
		


			KEPPEL DC REIT
			
			
			AJBU
			
			
			4361
			
			
			Specialised
			
			
			-3.5
			
			
			8.9
			
			
			3.4
			
		


			KEPPEL REIT
			
			
			K71U
			
			
			4286
			
			
			Office
			
			
			7.9
			
			
			0.8
			
			
			4.9
			
		


			FAR EAST HOSPITALITY TRUST*
			
			
			Q5T
			
			
			1139
			
			
			Hospitality
			
			
			-4.2
			
			
			-0.6
			
			
			4.2
			
		


			AIMS APAC REIT
			
			
			O5RU
			
			
			926
			
			
			Industrial
			
			
			6.5
			
			
			-1.4
			
			
			6.2
			
		


			ELITE COMMERCIAL REIT
			
			
			MXNU
			
			
			401
			
			
			Office
			
			
			5.8
			
			
			-1.7
			
			
			6.5
			
		


			CAPITALAND CHINA TRUST
			
			
			AU8U
			
			
			2014
			
			
			Diversified
			
			
			-3.9
			
			
			-3.8
			
			
			4.7
			
		


			CDL HOSPITALITY TRUSTS*
			
			
			J85
			
			
			1518
			
			
			Hospitality
			
			
			0.4
			
			
			-4.1
			
			
			4.1
			
		


			LENDLEASE GLOBAL COMMERCIAL REIT
			
			
			JYEU
			
			
			906
			
			
			Diversified
			
			
			8.6
			
			
			-4.6
			
			
			5.3
			
		


			ASCENDAS INDIA TRUST**
			
			
			CY6U
			
			
			1773
			
			
			Diversified
			
			
			14.7
			
			
			-4.8
			
			
			5.9
			
		

 Note * Stapled Trust, ** Business Trust. Source: SREITs &amp; Property Trust Chartbook, Refinitiv and Bloomberg (Data as 5 March 2021)

 

Amalgamation of Jardine Strategic Holdings Puts STI Reserve List in Focus  
The Straits Times Index (“STI”) Reserve List (in order of highest market capitalisation) are Frasers Logistics &amp; Commercial Trust, Keppel REIT, Suntec REIT, Frasers Centrepoint Trust and NetLink NBN Trust. Should the Jardine Strategic amalgamation resolution be approved at the special general meeting, the STI Reserve stock with the highest market cap at the close two days prior to the Index deletion of Jardine Strategic Holdings will join the STI.  
On 8 March, Jardine Strategic Holdings announced that it had agreed to a proposal made by Jardine Matheson Holdings on the terms of a recommended cash acquisition by Jardine Matheson Holdings of the 15% of Jardine Strategic Holdings issued share capital which Jardine Matheson Holdings or its wholly-owned subsidiaries do not already own. Under the terms of the acquisition, Jardine Strategic Holdings shareholders (other than Jardine Matheson Holdings and its wholly-owned subsidiaries) shall be entitled to receive US$33.00 in cash for each Jardine Strategic Holdings Share, representing a premium of approximately 20.2% to the closing share price of US$27.45 per Jardine Strategic Holdings on 5 March 2021. Both companies report their FY20 (ending 31 Dec) preliminary results on 11 March, and the announcement noted a shareholder circular, setting out the details of the acquisition, the procedures to be followed to approve the acquisition and the notice of the Special General Meeting, will be published as soon as practicable (for more information) click here.  S-REIT Sector Highlights  
While on average the trusts of the S-REIT Sector are trading at book value, on a median basis, global REITs are trading at a 4% premium to book value. At the same time, S-REITs maintain a lower debt to asset ratio of 37%, versus 39% for the global medium, and a higher trailing dividend yield with a 5.6% median, versus the global median which is 4.5%. The trust of the S-REIT Sector that are currently listed for trading are detailed below, with the table sort by REIT name. For more information of the S-REIT Sector click here for the most recently uploaded Chartbook.





			Name
			
			
			Stock 
			code
			
			
			Mkt Cap S$M
			
			
			Type of Property 
			Sub-segment
			
			
			2021 YTD (%)
			
			
			Past 12 Months Total Return (%)
			
			
			Div. Yield 

			(%)
			
			
			Debt/ Asset (%)
			
			
			P/B (x)
			
		


			AIMS APAC REIT
			
			
			O5RU
			
			
			926
			
			
			Industrial
			
			
			6.5
			
			
			-1.4
			
			
			6.2
			
			
			34
			
			
			0.9
			
		


			ARA LOGOS LOGISTICS TRUST
			
			
			K2LU
			
			
			895
			
			
			Industrial
			
			
			18.0
			
			
			10.4
			
			
			7.3
			
			
			39
			
			
			1.4
			
		


			ARA US HOSPITALITY TRUST*
			
			
			XZL
			
			
			373
			
			
			Hospitality
			
			
			13.2
			
			
			-33.1
			
			
			8.6
			
			
			48
			
			
			0.6
			
		


			ASCENDAS INDIA TRUST**
			
			
			CY6U
			
			
			1773
			
			
			Diversified
			
			
			14.7
			
			
			-4.8
			
			
			5.9
			
			
			30
			
			
			1.4
			
		


			ASCENDAS REIT
			
			
			A17U
			
			
			12174
			
			
			Industrial
			
			
			-1.1
			
			
			-11.1
			
			
			5.0
			
			
			33
			
			
			1.3
			
		


			ASCOTT RESIDENCE TRUST*
			
			
			HMN
			
			
			3239
			
			
			Hospitality
			
			
			-1.9
			
			
			-9.9
			
			
			3.1
			
			
			36
			
			
			1.0
			
		


			BHG RETAIL REIT
			
			
			BMGU
			
			
			281
			
			
			Retail
			
			
			0.0
			
			
			-7.1
			
			
			4.9
			
			
			36
			
			
			0.7
			
		


			CAPITALAND INTEGRATED COMMERCIAL TRUST
			
			
			C38U
			
			
			13595
			
			
			Diversified
			
			
			-2.0
			
			
			-13.3
			
			
			4.1
			
			
			41
			
			
			1.0
			
		


			CAPITALAND CHINA TRUST
			
			
			AU8U
			
			
			2014
			
			
			Diversified
			
			
			-3.9
			
			
			-3.8
			
			
			4.7
			
			
			32
			
			
			0.9
			
		


			CDL HOSPITALITY TRUSTS*
			
			
			J85
			
			
			1518
			
			
			Hospitality
			
			
			0.4
			
			
			-4.1
			
			
			4.1
			
			
			38
			
			
			0.9
			
		


			CROMWELL EUROPEAN REIT
			
			
			CNNU
			
			
			1940
			
			
			Diversified
			
			
			-5.5
			
			
			-8.4
			
			
			7.6
			
			
			38
			
			
			0.8
			
		


			DASIN RETAIL TRUST**
			
			
			CEDU
			
			
			568
			
			
			Retail
			
			
			-7.0
			
			
			-6.4
			
			
			5.6
			
			
			38
			
			
			0.5
			
		


			EC WORLD REIT
			
			
			BWCU
			
			
			596
			
			
			Industrial
			
			
			3.5
			
			
			11.5
			
			
			7.5
			
			
			38
			
			
			0.8
			
		


			ELITE COMMERCIAL REIT
			
			
			MXNU
			
			
			401
			
			
			Office
			
			
			5.8
			
			
			-1.7
			
			
			6.5
			
			
			31
			
			
			1.0
			
		


			ESR-REIT
			
			
			J91U
			
			
			1342
			
			
			Industrial
			
			
			-3.1
			
			
			-25.3
			
			
			7.3
			
			
			42
			
			
			1.0
			
		


			FAR EAST HOSPITALITY TRUST*
			
			
			Q5T
			
			
			1139
			
			
			Hospitality
			
			
			-4.2
			
			
			-0.6
			
			
			4.2
			
			
			41
			
			
			0.7
			
		


			FIRST REIT
			
			
			AW9U
			
			
			328
			
			
			Health Care
			
			
			-2.2
			
			
			-75.4
			
			
			18.7
			
			
			49
			
			
			0.4
			
		


			FRASERS CENTREPOINT TRUST
			
			
			J69U
			
			
			4212
			
			
			Retail
			
			
			0.8
			
			
			-16.0
			
			
			3.6
			
			
			38
			
			
			1.1
			
		


			FRASERS HOSPITALITY TRUST*
			
			
			ACV
			
			
			973
			
			
			Hospitality
			
			
			-3.8
			
			
			-21.5
			
			
			2.8
			
			
			38
			
			
			0.8
			
		


			FRASERS LOGISTICS &amp; COMMERCIAL TRUST
			
			
			BUOU
			
			
			4594
			
			
			Diversified
			
			
			-5.0
			
			
			10.9
			
			
			5.2
			
			
			36
			
			
			1.3
			
		


			IREIT GLOBAL
			
			
			UD1U
			
			
			600
			
			
			Office
			
			
			1.8
			
			
			-6.8
			
			
			7.7
			
			
			35
			
			
			0.7
			
		


			KEPPEL DC REIT
			
			
			AJBU
			
			
			4361
			
			
			Specialized
			
			
			-3.5
			
			
			8.9
			
			
			3.4
			
			
			36
			
			
			2.3
			
		


			KEPPEL PACIFIC OAK US REIT
			
			
			CMOU
			
			
			863
			
			
			Office
			
			
			4.6
			
			
			-7.3
			
			
			9.2
			
			
			37
			
			
			0.8
			
		


			KEPPEL REIT
			
			
			K71U
			
			
			4286
			
			
			Office
			
			
			7.9
			
			
			0.8
			
			
			4.9
			
			
			37
			
			
			0.9
			
		


			LENDLEASE GLOBAL COMMERCIAL REIT
			
			
			JYEU
			
			
			906
			
			
			Diversified
			
			
			8.6
			
			
			-4.6
			
			
			5.3
			
			
			36
			
			
			0.9
			
		


			LIPPO MALLS INDONESIA RETAIL TRUST
			
			
			D5IU
			
			
			472
			
			
			Retail
			
			
			0.0
			
			
			-64.2
			
			
			11.8
			
			
			42
			
			
			0.4
			
		


			MANULIFE US REIT
			
			
			BTOU
			
			
			1506
			
			
			Office
			
			
			-0.3
			
			
			-29.7
			
			
			8.5
			
			
			41
			
			
			0.9
			
		


			MAPLETREE COMMERCIAL TRUST
			
			
			N2IU
			
			
			6632
			
			
			Diversified
			
			
			-6.1
			
			
			-10.6
			
			
			4.1
			
			
			34
			
			
			1.2
			
		


			MAPLETREE INDUSTRIAL TRUST
			
			
			ME8U
			
			
			6160
			
			
			Industrial
			
			
			-8.3
			
			
			-9.5
			
			
			4.5
			
			
			37
			
			
			1.6
			
		


			MAPLETREE LOGISTICS TRUST
			
			
			M44U
			
			
			7526
			
			
			Industrial
			
			
			-8.8
			
			
			-5.6
			
			
			4.4
			
			
			37
			
			
			1.4
			
		


			MAPLETREE NORTH ASIA COMMERCIAL TRUST
			
			
			RW0U
			
			
			3331
			
			
			Diversified
			
			
			0.0
			
			
			-12.5
			
			
			6.4
			
			
			41
			
			
			0.7
			
		


			OUE COMMERCIAL REIT
			
			
			TS0U
			
			
			2008
			
			
			Diversified
			
			
			-0.3
			
			
			-17.9
			
			
			6.6
			
			
			41
			
			
			0.6
			
		


			PARKWAYLIFE REIT
			
			
			C2PU
			
			
			2571
			
			
			Health Care
			
			
			10.8
			
			
			21.5
			
			
			3.4
			
			
			39
			
			
			2.1
			
		


			PRIME US REIT
			
			
			OXMU
			
			
			1117
			
			
			Office
			
			
			5.3
			
			
			-17.6
			
			
			7.5
			
			
			34
			
			
			0.9
			
		


			SABANA SHARIAH COMP IND REIT
			
			
			M1GU
			
			
			390
			
			
			Industrial
			
			
			10.5
			
			
			-13.7
			
			
			7.4
			
			
			34
			
			
			0.7
			
		


			SASSEUR REIT
			
			
			CRPU
			
			
			1044
			
			
			Retail
			
			
			5.5
			
			
			18.3
			
			
			7.4
			
			
			28
			
			
			0.9
			
		


			SOILBUILD BUSINESS SPACE REIT
			
			
			SV3U
			
			
			683
			
			
			Diversified
			
			
			2.3
			
			
			19.0
			
			
			7.4
			
			
			39
			
			
			1.0
			
		


			SPH REIT
			
			
			SK6U
			
			
			2334
			
			
			Retail
			
			
			0.8
			
			
			-15.1
			
			
			3.1
			
			
			31
			
			
			0.8
			
		


			STARHILL GLOBAL REIT
			
			
			P40U
			
			
			1157
			
			
			Retail
			
			
			7.7
			
			
			-17.0
			
			
			5.0
			
			
			36
			
			
			0.6
			
		


			SUNTEC REIT
			
			
			T82U
			
			
			4285
			
			
			Diversified
			
			
			2.8
			
			
			-10.6
			
			
			5.1
			
			
			44
			
			
			0.7
			
		


			UNITED HAMPSHIRE US REIT
			
			
			ODBU
			
			
			439
			
			
			Retail
			
			
			6.3
			
			
			   -14.2
			
			
			7.4
			
			
			36
			
			
			0.9
			
		


			Average
			
			
			 
			
			
			 
			
			
			 
			
			
			1.7
			
			
			-8.3
			
			
			6.2
			
			
			37.3
			
			
			1.0
			
		


			Median
			
			
			 
			
			
			 
			
			
			 
			
			
			0.4
			
			
			-7.3
			
			
			5.6
			
			
			37.3
			
			
			0.9
			
		

Note * Stapled Trust, ** Business Trust. Source: SREITs &amp; Property Trust Chartbook, Refinitiv and Bloomberg (Data as 5 March 2021)

 



Capitaland Integrated Commercial Trust (CICT SP)

Mapletree Pan Asia Commercial Trust (MCT SP)

Mapletree North Asia Commercial Trust (MAGIC SP)

Lippo Malls Indonesia Retail Trust (LMRT SP)

Frasers Logistics & Commercial Trust (FLT SP)

Lendlease Global Commercial REIT (LREIT SP)

S-REITs Yielding 6% & Leading the STI Reserve List 

UOB

S-REITs Yielding 6% & Leading the STI Reserve List