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

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The STI Reserve List is comprised of Mapletree Commercial Trust, Suntec REIT, Mapletree Logistics Trust, Keppel REIT and Mapletree North Asia Commercial Trust. Together, the five REITs have averaged a 13.4% total return in 2019 YTD. 
	 </li>
	<li>
In 2019 YTD, trading volumes for four of the five REITs, Mapletree Commercial Trust, Mapletree Logistics Trust, Keppel REIT and Mapletree North Asia Commercial Trust, have surged 40% compared to their combined trading volumes in 2018. 
	 </li>
	<li>Coinciding with higher unit prices &amp; trading volumes, the four REITs saw their combined average daily turnover surge 51% to S$48.2 million in 2019 YTD, from S$31.8 million in 2018. These REITs were recipient of a combined S$50 million in institutional net inflow in first 10 weeks of 2019</li>
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While the Straits Times Index (“STI”) includes three Real Estate Investment Trusts (“REITs”), the STI Reserve List is currently wholly comprised of REITs. The five REITs are Mapletree Commercial Trust (“MCT”), Suntec REIT, Mapletree Logistics Trust (“MLT”), Keppel REIT and Mapletree North Asia Commercial Trust (“MNACT”). 

REITs have been listed on Singapore Exchange since 2002 and in the last five trading sessions alone accounted for 14 of the top 50 stocks by turnover or traded value. 

Turnover and Volume Surges

Four of the five REITs that make up the STI Reserve List – MCT, MLT, Keppel REIT and MNACT have seen trading activity surge in the 2019 year-to-date. The combined average daily volume traded in 2019 through to 12 March for the four REITs has been 40% higher than the respective daily volumes for the full 2018 calendar year. Likewise, average daily turnover or daily traded values for the four REITS combined has also surged, and combined has been 51% higher than the respective 2018 levels.
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 <img src="https://api2.sgx.com/sites/default/files/2019-03/Trading%20and%20volume%20growth.PNG" alt="Trading and Volume Growth">
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 <div class="content-caption">Trading and Volume Growth</div>
These four REITs saw their combined average daily turnover surge to S$48.2 million in the 2019 year-to-date from S$31.8 million in 2018.

For the five sessions through to 12 March, MCT and MLT ranked #19 and #20 by average daily turnover for all of the stocks listed on SGX.  Meanwhile, Keppel REIT and MNACT ranked #27 and #32, while Suntec REIT, not illustrated above ranked #30.

The four REITs have also performed similarly in the 2019 year through to 12 March, averaging 13.7% total returns. Suntec REIT, which makes up the fifth REIT of the STI Reserve List averaged a 12.2% total return in the 2019 year through to 12 March. The four REITs have been recipient of S$50 million in institutional net inflow in the 2019 year to 8 March.

 

<table class="table table-striped"><tbody>
<tr>
<td>
			Four of Five REITs in STI Reserve List with  Strong Volume Growth in 2019 YTD
			</td>
			<td>
			SGX Code
			</td>
			<td>
			Mkt Cap S$Bn
			</td>
			<td>
			Total Return 2016 %
			</td>
			<td>
			Total Return 2017 %
			</td>
			<td>
			Total Return 2018 %
			</td>
			<td>
			Total Return YTD %
			</td>
			<td>
			Latest Fin Results
			</td>
			<td>
			Div. Yield (%)
			</td>
		</tr>
<tr>
<td>
			Mapletree Commercial Trust
			</td>
			<td>
			N2IU
			</td>
			<td>
			5.2
			</td>
			<td>
			14.9
			</td>
			<td>
			23.0
			</td>
			<td>
			7.6
			</td>
			<td>
			11.2
			</td>
			<td>
			<a href="https://links.sgx.com/1.0.0/corporate-announcements/EE48W4U3NGDECFKZ/ac721876262ef69713b2d084f634a73a06888396152e2602c811ebc9c2f1b175">Link</a>
			</td>
			<td>
			5.0
			</td>
		</tr>
<tr>
<td>
			Mapletree Logistics Trust
			</td>
			<td>
			M44U
			</td>
			<td>
			5.2
			</td>
			<td>
			10.8
			</td>
			<td>
			38.7
			</td>
			<td>
			1.5
			</td>
			<td>
			15.2
			</td>
			<td>
			<a href="https://links.sgx.com/1.0.0/corporate-announcements/NIWU1BAZ3OGONQLK/492d635e2072fcfa9f236fc76269561b680d887e188ae6b1244ab884f5c37418">Link</a>
			</td>
			<td>
			5.5
			</td>
		</tr>
<tr>
<td>
			Keppel REIT
			</td>
			<td>
			K71U
			</td>
			<td>
			4.4
			</td>
			<td>
			17.0
			</td>
			<td>
			30.1
			</td>
			<td>
			-5.2
			</td>
			<td>
			13.6
			</td>
			<td>
			<a href="https://links.sgx.com/1.0.0/corporate-announcements/YLF8AE8KDKU9R0BA/c3e9ffcd1455ae2bce870b541e983390b76612585137297d0fe1c2410e2e12da">Link</a>
			</td>
			<td>
			4.3
			</td>
		</tr>
<tr>
<td>
			Mapletree North Asia Commercial Trust
			</td>
			<td>
			RW0U
			</td>
			<td>
			4.1
			</td>
			<td>
			11.7
			</td>
			<td>
			38.3
			</td>
			<td>
			-1.1
			</td>
			<td>
			14.9
			</td>
			<td>
			<a href="https://links.sgx.com/1.0.0/corporate-announcements/RJTT89KBL5D2ZJGZ/4c839d5f091aa862756a30408b0bf327d902dcd722016ea9114b87dff4458623">Link</a>
			</td>
			<td>
			7.4
			</td>
		</tr>
<tr>
<td>
			Average:
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			13.6
			</td>
			<td>
			32.5
			</td>
			<td>
			0.7
			</td>
			<td>
			13.7
			</td>
			<td>
			 
			</td>
			<td>
			5.6
			</td>
		</tr>
</tbody></table>
Source: SGX My Gateway, Bloomberg, Thomson Reuters (Data as of 12 March 2019)

 

The four REITs were recipient of a combined S$50 million in institutional net inflow in first 10 weeks of 2019, led by net inflow of S$21 million for Keppel REIT.

The Four REITs Recently Reported FY or FY-to-date DPU Growth 

These REITs also recently reported financial results, and grew in every instance distribution per unit (“DPU”) for either their financial year-to-date, or the complete FY:

<ul>
<li>
MCT’s 9MFY18/19 gross revenue (ending 31 Dec 2018) gained 2.0% YoY, with its DPU up 0.9%.  MCT’s portfolio comprises VivoCity, MBC I, PSA Building, Mapletree Anson and MLHF. These five assets have a total value of S$6.7 billion. 
	 </li>
	<li>
MLT’s 9MFY18/19 gross revenue (ending 31 Dec 2018) gained 15.7% YoY, with its distribution per unit (“DPU”) up 4.2%.  As at 31 Dec 2018, MLT’s portfolio comprised 140 properties with a total AUM value of S$7.8 billion. 
	 </li>
	<li>
At S$165.9 million, Keppel REIT’s property income for FY18 (ending 31 Dec 2018) grew modestly above its FY17 property income of S$164.5 million, with the distribution per unit (“DPU”) up 2.5%. As of 31 Dec, Keppel REIT had AUM of over S$8 billion in Singapore as well as key Australian cities. 
	 </li>
	<li>
MNACT’s 9MFY18/19 gross revenue (ending 31 Dec 2018) gained 14.8% YoY, with its DPU up 2.7%. MNACT’s portfolio consists of nine properties in China, Hong Kong SAR and Japan with a total book value of S$7.2 billion as of 31 Dec 2018.</li>
</ul>
For the quarter, MCT, MLT and MNACT reported DPU growth for 3QFY18/19 from 3QFY17/18.

STI Reserve List

The STI Reserve List is used in the event that one or more of the STI constituents are deleted during the period up to the next quarterly review. As detailed in the STI Ground Rules, when a company is going to be removed from the STI, the vacancy will be filled by selecting the highest ranking security by full market value in the Reserve List as at the close of the index calculation two days prior to the deletion.

There are further qualifications for the framework of the STI Reserve List in the case as Mergers, Restructuring and Complex Takeovers as described in Section 6.4 of the STI Ground rules.
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The STI Reserve List is comprised of Mapletree Commercial Trust, Suntec REIT, Mapletree Logistics Trust, Keppel REIT and Mapletree North Asia Commercial Trust. Together, the five REITs have averaged a 13.4% total return in 2019 YTD. 
	 
	
In 2019 YTD, trading volumes for four of the five REITs, Mapletree Commercial Trust, Mapletree Logistics Trust, Keppel REIT and Mapletree North Asia Commercial Trust, have surged 40% compared to their combined trading volumes in 2018. 
	 
	Coinciding with higher unit prices &amp; trading volumes, the four REITs saw their combined average daily turnover surge 51% to S$48.2 million in 2019 YTD, from S$31.8 million in 2018. These REITs were recipient of a combined S$50 million in institutional net inflow in first 10 weeks of 2019

While the Straits Times Index (“STI”) includes three Real Estate Investment Trusts (“REITs”), the STI Reserve List is currently wholly comprised of REITs. The five REITs are Mapletree Commercial Trust (“MCT”), Suntec REIT, Mapletree Logistics Trust (“MLT”), Keppel REIT and Mapletree North Asia Commercial Trust (“MNACT”). 

REITs have been listed on Singapore Exchange since 2002 and in the last five trading sessions alone accounted for 14 of the top 50 stocks by turnover or traded value. 

Turnover and Volume Surges

Four of the five REITs that make up the STI Reserve List – MCT, MLT, Keppel REIT and MNACT have seen trading activity surge in the 2019 year-to-date. The combined average daily volume traded in 2019 through to 12 March for the four REITs has been 40% higher than the respective daily volumes for the full 2018 calendar year. Likewise, average daily turnover or daily traded values for the four REITS combined has also surged, and combined has been 51% higher than the respective 2018 levels.

      
    
    Trading and Volume Growth
These four REITs saw their combined average daily turnover surge to S$48.2 million in the 2019 year-to-date from S$31.8 million in 2018.

For the five sessions through to 12 March, MCT and MLT ranked #19 and #20 by average daily turnover for all of the stocks listed on SGX.  Meanwhile, Keppel REIT and MNACT ranked #27 and #32, while Suntec REIT, not illustrated above ranked #30.

The four REITs have also performed similarly in the 2019 year through to 12 March, averaging 13.7% total returns. Suntec REIT, which makes up the fifth REIT of the STI Reserve List averaged a 12.2% total return in the 2019 year through to 12 March. The four REITs have been recipient of S$50 million in institutional net inflow in the 2019 year to 8 March.

 




			Four of Five REITs in STI Reserve List with  Strong Volume Growth in 2019 YTD
			
			
			SGX Code
			
			
			Mkt Cap S$Bn
			
			
			Total Return 2016 %
			
			
			Total Return 2017 %
			
			
			Total Return 2018 %
			
			
			Total Return YTD %
			
			
			Latest Fin Results
			
			
			Div. Yield (%)
			
		


			Mapletree Commercial Trust
			
			
			N2IU
			
			
			5.2
			
			
			14.9
			
			
			23.0
			
			
			7.6
			
			
			11.2
			
			
			Link
			
			
			5.0
			
		


			Mapletree Logistics Trust
			
			
			M44U
			
			
			5.2
			
			
			10.8
			
			
			38.7
			
			
			1.5
			
			
			15.2
			
			
			Link
			
			
			5.5
			
		


			Keppel REIT
			
			
			K71U
			
			
			4.4
			
			
			17.0
			
			
			30.1
			
			
			-5.2
			
			
			13.6
			
			
			Link
			
			
			4.3
			
		


			Mapletree North Asia Commercial Trust
			
			
			RW0U
			
			
			4.1
			
			
			11.7
			
			
			38.3
			
			
			-1.1
			
			
			14.9
			
			
			Link
			
			
			7.4
			
		


			Average:
			
			
			 
			
			
			 
			
			
			13.6
			
			
			32.5
			
			
			0.7
			
			
			13.7
			
			
			 
			
			
			5.6
			
		

Source: SGX My Gateway, Bloomberg, Thomson Reuters (Data as of 12 March 2019)

 

The four REITs were recipient of a combined S$50 million in institutional net inflow in first 10 weeks of 2019, led by net inflow of S$21 million for Keppel REIT.

The Four REITs Recently Reported FY or FY-to-date DPU Growth 

These REITs also recently reported financial results, and grew in every instance distribution per unit (“DPU”) for either their financial year-to-date, or the complete FY:



MCT’s 9MFY18/19 gross revenue (ending 31 Dec 2018) gained 2.0% YoY, with its DPU up 0.9%.  MCT’s portfolio comprises VivoCity, MBC I, PSA Building, Mapletree Anson and MLHF. These five assets have a total value of S$6.7 billion. 
	 
	
MLT’s 9MFY18/19 gross revenue (ending 31 Dec 2018) gained 15.7% YoY, with its distribution per unit (“DPU”) up 4.2%.  As at 31 Dec 2018, MLT’s portfolio comprised 140 properties with a total AUM value of S$7.8 billion. 
	 
	
At S$165.9 million, Keppel REIT’s property income for FY18 (ending 31 Dec 2018) grew modestly above its FY17 property income of S$164.5 million, with the distribution per unit (“DPU”) up 2.5%. As of 31 Dec, Keppel REIT had AUM of over S$8 billion in Singapore as well as key Australian cities. 
	 
	
MNACT’s 9MFY18/19 gross revenue (ending 31 Dec 2018) gained 14.8% YoY, with its DPU up 2.7%. MNACT’s portfolio consists of nine properties in China, Hong Kong SAR and Japan with a total book value of S$7.2 billion as of 31 Dec 2018.

For the quarter, MCT, MLT and MNACT reported DPU growth for 3QFY18/19 from 3QFY17/18.

STI Reserve List

The STI Reserve List is used in the event that one or more of the STI constituents are deleted during the period up to the next quarterly review. As detailed in the STI Ground Rules, when a company is going to be removed from the STI, the vacancy will be filled by selecting the highest ranking security by full market value in the Reserve List as at the close of the index calculation two days prior to the deletion.

There are further qualifications for the framework of the STI Reserve List in the case as Mergers, Restructuring and Complex Takeovers as described in Section 6.4 of the STI Ground rules.



Mapletree Pan Asia Commercial Trust (MCT SP)

Mapletree North Asia Commercial Trust (MAGIC SP)

Trading Surges for Four REITs in the STI Reserve List