Real Estate Investment Trusts (REITs) have been one of the best performing asset classes in recent years. REITs are an increasingly popular asset class in Singapore, a market which really loves our property investments.
In fact, Singapore is now one of the largest REIT markets in the world, coming in second in Asia, behind Japan. In the past five years alone, the SGX S-REIT 20 Index, consisting of the 20 largest and most highly traded REITs listed on the Singapore Exchange (SGX), delivered a return of close to 11.1%.
This is compared to the Straits Times Index (STI), which has delivered a return of close to 5.6%, or nearly half as much.
We’ve been focusing on REIT performances for a while now, and regularly update our readers with how REITs have performed in each quarter. Here’s how they’ve done in 3Q2017 (or the third quarter of 2017).
1 New REIT, And 1 New REIT ETF Listing; And 1 REIT Delisting In Singapore In The Third Quarter Of 2017
After the listing of China-based Dasin Retail Trust and NikkoAM-Straits Trading Asia Ex Japan REIT ETF in the first half of the year, the SGX welcomed US office properties-focused REIT, Keppel-KBS US REIT, and the Lion-Phillip S-REIT ETF, the third REIT ETF on SGX and the only one solely invested into Singapore-based REITs.
Keppel-KBS US REIT debuted on the SGX on 9 September 2017. It has 11 freehold properties across seven key markets in the US. Keppel-KBS US REIT currently trades 3.4% higher at, US$0.91 (as at 21 November 2017), than its IPO price of US$0.88.
The Lion-Phillip S-REIT ETF became the third listed REIT ETF in Singapore in close to a year when it listed on the SGX on 30 October 2017. Setting itself apart from the previous two REITs, Lion-Phillip S-REIT ETF is only investing in REITs that are listed in the Singapore market. Shares in the ETF were offered at $1 per unit, and it currently trades at $1.02, or nearly 2% higher.
As mentioned in our previous update, Croesus Retail Trust, a Japan-based retail REIT delisted on 24 October 2017.
1 REIT To Be Listed, 1 Trust To Be Delisted
Also featured in our previous update, Cromwell European REIT had planned to list in 3Q2017. Those plans were subsequently dropped, only to be revived recently, in November 2017. After carving out its Polish retail properties, which it said local investors were less receptive to, the REIT plans to list by December 2017.
On 14 November 2017, RHT Health Trust received an offer of $966 million from Fortis Healthcare, its controlling shareholder, for its entire portfolio of healthcare assets based in India. This was estimated to be close to 11% premium over its closing share price the day before. If it goes ahead, only the assets would be bought out rather than the trust itself.
44 REITs And Property-Related Stapled Securities And Trusts, And 3 REIT ETFs In Singapore
|No.||All REITs, Stapled Securities And Other Trusts||Industry (Country)||Price On 1 Jan 2017 (SGD)||Price On 21 Nov 2017 (SGD)||Dividend Yield In 2017 (%) +++++||Return In YTD 2017 (%) +++++|
|REITs and Stapled Securities|
|1||AIMS AMP Capital Industrial Reit||Industrial (Singapore and Australia)||1.310||1.400||7.6||15.3|
|2||Ascendas Reit||Industrial (Singapore, Australia and China)||2.270||2.650||6.0||23.7|
|3||Ascendas Hospitality Trust||Hospitality (Australia, Japan, Singapore and China)||0.705||0.865||6.7||31.6|
|4||Ascott Residence Trust||Hospitality (Japan, China, Singapore and others)||1.130||1.190||5.8||17.3|
|5||BHG Retail REIT||Retail (China)||0.655||0.745||N.A||22.5|
|6||Cache Logistics Trust||Industrial (Singapore and Australia)||0.810||0.860||7.9||19.0|
|7||CapitaLand Commercial Trust||Commercial (Singapore)||1.480||1.910||4.8||38.4|
|8||CapitaLand Mall Trust||Retail (Singapore)||1.885||2.060||5.3||16.1|
|9||CapitaRetail China Trust||Retail (China)||1.370||1.670||6.6||29.4|
|10||CDL Hospitality Trust||Hospitality (Singapore, Australia, Maldives, New Zealand, Japan, United Kingdom)||1.340||1.640||5.5||36.6|
|11||EC World Reit||Logistics (China)||0.760||0.765||N.A||8.7|
|13||Far East Hospitality Trust||Hospitality and Commercial (Singapore)||0.600||0.700||5.7||24.3|
|14||First REIT||Healthcare (Indonesia)||1.265||1.360||6.3||15.4|
|15||Fortune REIT (HKD)||Retail and Commercial (Hong Kong)||8.610||9.440||5.5||15.1|
|16||Frasers Centrepoint Trust||Retail (Singapore)||1.900||2.20||5.6||22.0|
|17||Frasers Commercial Trust||Commercial (Singapore and Australia)||1.260||1.420||6.7||22.0|
|18||Frasers Hospitality Trust||Hospitality (Singapore, UK, Japan, Australia and Germany)||0.650||0.775||6.7||27.6|
|19||Frasers Logistics & Industrial Trust||Logistics and Industrial (Australia)||0.925||1.100||6.5||25.9|
|20||IREIT Global||Commercial (Germany)||0.715||0.765||7.8||15.1|
|21||Keppel DC REIT||Data Centres (Diversified)||1.185||1.390||5.2||23.4|
|22||Keppel-KBS US REIT (USD)||Commercial (USA)||0.88||0.910||6.6||3.4|
|23||Keppel REIT||Commercial (Singapore and Australia)||1.055||1.190||5.1||22.9|
|24||Lippo Malls Indonesia Trust||Retail (Indonesia)||0.370||0.430||8.7||27.8|
|25||Manulife REIT (USD)||Commercial (USA)||0.830||0.895||6.1||27.3|
|26||Mapletree Commercial Trust||Retail and Commercial (Singapore)||1.215||1.550||5.7||18.5|
|27||Mapletree GCC Trust||Commercial and Retail (China and Hong Kong)||0.950||1.160||6.4||30.4|
|28||Mapletree Industrial Trust||Industrial (Singapore)||1.645||1.990||6.0||29.6|
|29||Mapletree Logistics Trust||Industrial (Singapore, Japan, Hong Kong and others)||1.020||1.280||6.0||33.4|
|30||OUE Commercial REIT||Commercial (Singapore, China)||0.695||0.710||6.8||9.5|
|31||OUE Hospitality Trust||Hospitality (Singapore)||0.660||0.810||6.3||31.7|
|32||Parkway Life REIT||Healthcare (Singapore and Japan)||2.360||2.840||4.8||26.0|
|33||Sabana REIT||Industrial (Singapore)||0.380||0.425||N.A||22.2|
|34||Soilbuild Business Space REIT||Industrial (Singapore)||0.640||0.645||8.7||9.9|
|35||SPH REIT||Retail (Singapore)||0.950||1.030||5.5||15.7|
|36||Starhill Global REIT||Retail and Commercial (Singapore, Australia, Malaysia and others)||0.740||0.755||6.6||9.4|
|37||Suntec REIT||Commercial and Retail (Singapore)||1.650||1.970||5.1||26.7|
|38||Viva Industrial Trust||Industrial (Singapore)||0.755||0.980||7.6||39.4|
|Other Property Trusts|
|39||Accordia Golf Trust||Golf Courses (Japan)||0.630||0.700||7.5||16.8|
|40||Ascendas India Trust||Industrial (India)||1.015||1.150||5.4||18.1|
|41||Dasin Retail Trust||Retail (China)||0.800+||0.840||N.A||N.A|
|42||Hutchison Port Holdings Trust||Port Assets (Hong Kong and China)||0.435||0.570||6.3||3.4|
|43||Keppel Infrastructure Trust||Infrastructure (Singapore)||0.475||0.575||7.0||27.6|
|44||RHT Health Trust||Healthcare (India)||0.915||0.845++++||6.1||-4.1+++|
|45||Lion-Phillip S-REIT ETF||ETF||1.000+++||1.021||N.A||2.1|
|46||NikkoAM-Straits Trading Asia Ex Japan REIT ETF||ETF||1.000++||1.124||N.A||6.8*|
|47||Phillip SGX APAC Dividend Leaders REIT ETF||ETF||1.260||1.36||5.0||6.9*|
+ Based on IPO price (as at listing on 20 January 2017)
++ Based on IPO price (as at listing on 29 March 2017)
++ Based on IPO price (as at listing on 30 October 2017)
++++ RHT Health Trust divested part of its portfolio in February 2017; it paid out a special dividend of $0.248 per unit to shareholders
+++++ Based on OCBC Investment Research Indications
* From respective product factsheets
Benchmarking Your Returns
The benchmark you should be comparing your investments to are the REIT ETFs. As they’re newly-listed, a more accurate gauge can be made next year.
The other benchmark is to use the SGX S-REIT 20 Index, which, as stated earlier in the article, has returned close to 11.1% in the past five years, and if you look at it within the past year, it has returned close to 16.9%.
You could also benchmark your portfolio’s performance to the STI ETF, which has delivered close to 20.6% in returns this year.