• 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 %
Ascendas REIT REIT A17U 7,824 1.1 9.8 6.0
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
Suntec REIT REIT T82U 4,662 -16.6 -0.7 5.7
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
Keppel REIT REIT K71U 3,749 -10.7 -0.2 5.2
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
Fortune REIT** REIT F25U 3,049 -0.1 0.0 5.4
SPH REIT REIT SK6U 2,557 -2.7 5.1 5.6
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
First REIT REIT AW9U 1,028 -2.8 4.8 6.6
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
ESR-REIT REIT J91U 808 -5.8 -9.1 7.3
Sasseur REIT REIT CRPU 785 N/A N/A N/A
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
IREIT Global REIT UD1U 478 1.7 7.6 7.8
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
Average  3.5 2.6 6.7

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.

Get weekly updates from us

Build your wealth. Start now.

Enjoying our content? You might want to subscribe to our weekly newsletter.
Hand-picked content and wealth-building resources for you.

You May Also Like

Editor's Picks