- Following strong growth of Singapore private property prices at 9.1% over the past 12M & subsequent further tightening of private property cooling measures, the 34 REITs & six Stapled Trusts maintain an average distribution yield of 6.7%.
- The five trusts that maintain the highest indicative yields are Lippo Malls Indonesia Retail Trust, Viva Industrial Trust*, Cache Logistics Trust, Soilbuild Business Space REIT and EC World REIT. These four REITs and one Stapled Trust* maintain an average yield of 8.8%.
- Institutional Investors have been net buyers of REITs over the past three weeks. Last week, Ascendas REIT, CapitaLand Mall Trust, CapitaLand Commercial Trust and Fraser Logistics & Industrial Trust ranked amongst the 10 stocks with the highest institutional inflows.
Real Estate Investment Trusts (REITs) and Stapled Trusts invest in a diversified pool of professionally managed real estate assets and raise capital to purchase primarily real estate assets, usually with a view to generate income for unit holders of the fund.
As REITAS President and CapitaLand Group CFO Andrew Lim noted in May, the S-REIT landscape in Singapore continues to evolve rapidly, and now has a broad base of different platforms, ranging from sponsor driven, to new and exciting asset classes such as data centres and outlet malls as well as platforms investing solely in overseas markets.
Institutional Investors have been net buyers of REITs and Stapled Trusts (+S$26.1 million) over the past three weeks according to SGX data. Last week Ascendas REIT, CapitaLand Mall Trust, CapitaLand Commercial Trust and Fraser Logistics & Industrial Trust ranked amongst the 10 stocks with the highest institutional inflows. Over the five sessions ending 6 July, institutions were net buyers of the REITs and Stapled Trusts with S$16.3 million of net inflow. This was the largest net institutional inflow to a Sector recorded over the past two weeks. Click here for more.
The 34 REITs and six Stapled Trusts currently average an indicative distribution yield of 6.7%. In the 2018 year through to 6 July, the 34 REITs and six Stapled Trusts have averaged a 3.5% decline in total return, bringing the average 12 month total return to 2.6%. The five trusts that maintain the highest indicative yields are Lippo Malls Indonesia Retail Trust, Stapled Trust Viva Industrial Trust, Cache Logistics Trust, Soilbuild Business Space REIT and EC World REIT.
The table below includes the 34 REITs and six Stapled Trusts. To see more detail on each trust in SGX StockFacts, click on the trust name.
|REITS & Stapled Trusts||Trust Structure||SGX Code||Market Cap S$M||YTD Total Return %||12M Total Return %||Indicative Dividend Yield %|
|CapitaLand Mall Trust||REIT||C38U||7,381||0.3||12.0||5.4|
|CapitaLand Commercial Trust||REIT||C61U||6,363||-8.1||10.3||5.1|
|Mapletree Commercial Trust||REIT||N2IU||4,588||0.9||6.4||5.7|
|Mapletree Logistics Trust||REIT||M44U||4,054||-1.2||12.5||6.1|
|Mapletree Industrial Trust||REIT||ME8U||3,715||-0.7||12.7||6.0|
|Mapletree North Asia Commercial Trust||REIT||RW0U||3,618||-2.9||13.0||6.5|
|Ascott Residence Trust||REIT||A68U||2,332||-8.8||-1.8||6.6|
|Frasers Logistics & Industrial||REIT||BUOU||2,147||-3.2||8.5||6.2|
|Frasers Centrepoint Trust||REIT||J69U||2,047||1.4||9.6||5.5|
|CDL Hospitality Trusts||Stapled||J85||1,878||-5.0||1.3||5.9|
|Keppel DC REIT||REIT||AJBU||1,838||-0.6||14.1||5.2|
|Parkway Life Real Estate||REIT||C2PU||1,652||-6.6||9.2||4.9|
|Cromwell European REIT**||REIT||CNNU||1,506||7.3||N/A||N/A|
|Manulife US REIT**||REIT||BTOU||1,474||-0.3||5.6||6.8|
|CapitaLand Retail China Trust||REIT||AU8U||1,445||-7.5||-4.8||6.8|
|Starhill Global REIT||REIT||P40U||1,429||-12.8||-11.8||7.1|
|OUE Hospitality Trust||Stapled||SK7||1,409||-6.1||9.3||6.6|
|Frasers Hospitality Trust||Stapled||ACV||1,271||-10.5||-0.6||7.3|
|Frasers Commercial Trust||REIT||ND8U||1,210||-5.0||3.1||7.0|
|Far East Hospitality Trust||Stapled||Q5T||1,157||-11.5||-1.3||6.3|
|OUE Commercial REIT||REIT||TS0U||1,060||-1.8||-0.6||6.8|
|AIMS AMP Capital Industrial||REIT||O5RU||936||3.2||-0.8||7.5|
|Lippo Malls Indonesia Retail Trust||REIT||D5IU||898||-17.9||-24.9||10.2|
|Ascendas Hospitality Trust||Stapled||Q1P||883||-5.7||2.0||7.5|
|Viva Industrial Trust||Stapled||T8B||847||-3.2||5.3||8.6|
|Cache Logistics Trust||REIT||K2LU||809||-8.4||-10.5||8.5|
|Keppel-KBS US REIT||REIT||CMOU||745||-2.3||N/A||N/A|
|Soilbuild Business Space REIT**||REIT||SV3U||691||1.7||-2.8||8.5|
|EC World REIT||REIT||BWCU||564||-2.1||-4.0||8.3|
|Sabana Shariah Comp Ind REIT||REIT||M1GU||458||14.7||3.1||7.6|
|BHG Retail REIT||REIT||BMGU||366||2.1||6.5||7.5|
Source: Bloomberg & SGX StockFacts (data as of 6 July 2018). **Note Cromwell European REIT is traded in EUR, Fortune REIT is traded in HKD, Manulife US REIT and Keppel-KBS US REIT are traded in USD. All returns are denominated in SGD.
Like stocks, REITs and Stapled Trusts have market risk – that is unit prices can move against the investor’s expectations. Other risks associated with a REIT or Stapled Trust investment can vary and depend on the unique characteristics of each Trust (i.e. leverage ratio, cost of refinancing, alignment of management fees), as well as the geographical location and quality of the underlying property investments (i.e. concentration of properties, length of lease). Other risks associated with stock investing (i.e. price risk, volatility and liquidity risks) also apply.
This article was originally published on SGX.