• REITs was the second-best performing sector in the month of March, generating a market capitalisation-weighted total return of 0.8%, behind the best performing IT sector’s 1.0% total return. In comparison, the STI registered a 2.6% decline in total return during the month.
  • The five largest REITs on SGX are Ascendas REIT, CapitaLand Mall Trust, CapitaLand Commercial Trust, Suntec REIT and Mapletree Commercial Trust, and they have a combined market capitalisation of about S$30 billion. They are catergorised by GICS under the Industrial, Retail and Office REIT sub-segments.
  • In the month of March, CapitaLand Commercial Trust – Singapore’s largest commercial REIT by market capitalisation – was the best-performing constituent of the STI, with price gain of 5.8%. The trust has a 1.41% weighting in the benchmark index.

Singapore Exchange has a total of 43 REITs and property trusts with a combined market capitalisation of more than S$88 billion and an average price-to-book (P/B) ratio of 1.0x. These 43 REITs and property trusts also average a dividend yield of 6.0%.

REITs was the second-best performing sector in the month of March, generating a market capitalisation-weighted total return of 0.8%, behind the best performing IT sector’s 1.0% total return. In comparison, the benchmark Straits Times Index (STI) registered a 2.6% decline in total return during the month. For a previously published Market Update on Singapore’s IT sector performance in 1Q 2018, click here.

Phillip Capital noted in a report published last month that higher interest rates are not necessarily negative for Singapore REITs, if the hikes were made in response to improving economic conditions. In a widely anticipated move last month, the Federal Reserve raised US interest rates by 25 basis points – the first so far this year –while maintaining its forecast of a total of three rate increases for 2018.

 Key REIT Facts

  • The five largest REITs listed on SGX are Ascendas REIT, CapitaLand Mall Trust, CapitaLand Commercial Trust, Suntec REIT and Mapletree Commercial Trust, and they have a combined market capitalisation of about S$30 billion. They are catergorised by the Global Industry Classification Standard (GICS) under the Industrial, Retail and Office REIT sub-segments.
  • Most of the real estate assets owned by the five REITs are located in Singapore, while Ascendas REIT and Suntec REIT also have exposure to assets in Australia. Likewise, apart from Singapore office properties, CapitaLand Commercial Trust also has a stake in a portfolio of commercial properties in Malaysia.
  • In the month of March, CapitaLand Commercial Trust – Singapore’s largest commercial REIT by market capitalisation – was the best-performing constituent of the STI, with price gain of 5.8%. The trust has a 1.41% weighting in the benchmark index.
  • The five largest REITs have averaged a total return of +0.7% during the month of March. In the 2018 year-to-date, they averaged a total return of -4.6%, bringing their 12-month total return to +12.1%. These five trusts also average a dividend yield of 5.6%.

The table below details Singapore’s five largest REITs, sorted by market capitalisation. Click on a trust name to view its profile in StockFacts.

Name SGX Code Market Cap S$M 4 Apr 

Closing Price

March 2018 

Total Return %

Total Return YTD % Total 

Return

12M %

Dvd 

Ind Yld %

GICS Sub 

Ind

Ascendas REIT A17U 7,623 2.64 -0.8 -2.9 8.3 6.8 Industrial REITs
CapitaLand Mall Trust C38U 7,274 2.05 3 -2.4 9.9 5.4 Retail REITs
CapitaLand Commercial Trust C61U 6,537 1.81 5.8 -4.2 24.5 4.8 Office REITs
Suntec REIT T82U 4,950 1.86 -4.6 -12.4 9.2 5.4 Diversified REITs
Mapletree Commercial Trust N2IU 4,551 1.58 0 -1.1 8.5 5.7 Retail REITs
Average 0.7 -4.6 12.1 5.6

Source: SGX, Bloomberg & SGX StockFacts (data as of 4 April 2018).

Improving Residential Outlook

Meanwhile, the residential segment of Singapore’s property market appears to be recovering, according to preliminary flash estimates released by the Urban Redevelopment Authority (URA) earlier this week.

  • The URA’s overall private home price index climbed 3.1% QoQ in the first three months of 2018, its steepest QoQ gain since the second quarter of 2010, when the index rose 5.3%.
  • The flash estimates are compiled based on transaction prices given in contracts submitted for stamp duty payment and data on units sold by developers up till mid-March. The statistics will be updated on 27 April 2018 when the URA releases its full set of real estate statistics for the first quarter. For the full statement on the 1Q 2018 private residential property price index, click here.

The five largest Real Estate stocks that reported at least 80% of their revenues to Singapore in their latest Annual Reports are: UOL Group, United Industrial Corp, Guocoland, Wheelock Properties and Oxley Holdings.

In the year thus far, these five real estate developers have averaged a total return of -8.2%, bringing their 12-month total return to 8.4%. These five stocks also average a dividend yield of 2.5%.

The five largest Real Estate stocks that reported at least 80% of their revenues to Singapore are tabled below, sorted by market capitalisation. Click on a stock name to view its profile in StockFacts.

Name SGX Code Market Cap S$M 4 Apr 

Closing Price

March 2018 

Total Return %

Total Return YTD % Total Return 

12M %

Dvd Ind Yld % GICS Sub Ind
UOL Group U14 7,008 8.32 0.4 -6.2 21 2.1 Diversified Real Estate Activities
United Industrial Corp U06 4,641 3.24 -2.4 -2.1 5.9 0.9 Diversified Real Estate Activities
Guocoland F17 2,449 2.07 -1.9 -7.6 15.5 3.3 Real Estate Development
Wheelock Properties (S) M35 2,106 1.76 -4.3 -7.4 -3.5 3.4 Real Estate Development
Oxley Holdings 5UX 1,822 0.45 -14.8 -17.6 3.1 3 Real Estate Development
Average -4.6 -8.2 8.4 2.5

 Source: SGX, Bloomberg & SGX StockFacts (data as of 4 April 2018).