With 34 Real Estate Investment Trusts (REITs), five stapled trusts and three property trusts listed on the Singapore Exchange (SGX), most investors would know by now that property is a major component of the SGX.
In this week’s edition of 4 Stocks This Week, we look at four stocks within the Singapore REITs sector that have outperformed not just the general stock market, but also their peers in the REITs sector.
#1 Sasseur REIT (SGX: CRPU)
We discussed about Sasseur a month ago as possibly a stock to watch for due to its low price-book ratio and it comes as no surprise to us that the stock has done extremely well since, increasing from $0.725 (8 March) to $0.80 (5 April). Since the start of the year, the company has generated a return of about 25% for its investors.
Sasseur REIT is the first outlet mall REIT to be listed in Singapore, comprising of 4 retail outlet malls located in Chongqing, Bishan, Hefei and Kunming. It’s entirely based in China so potential investors should be mindful that it will be heavily exposed to country risk.
#2 CapitaLand Retail China Trust (SGX: AU8U)
CapitaLand Retail China Trust, listed since 2006, is the first China shopping mall real estate investment trust (REIT) in Singapore, with a portfolio of 11 income-producing shopping malls. Similar to Sasseur, it holds most of its assets in China. This means that its performance will be closely linked to the performance of the property sector in mainland China.
To date, the company has generated a return of about 19.4% since the start of the year. The price-to-book (P/B) value of the company is currently 0.97, with a price-to-earning (P/E) ratio of 11.49.
#3 Keppel-KBS US REIT (SGX: CMOU)
Not to be confused with Keppel REIT, Keppel-KBS US REIT is a unique office REIT with its portfolio properties located in key growth markets of the US. The REIT’s investment strategy is to invest in a diversified portfolio of income-producing commercial assets and real estate-related assets in key growth markets of the US to provide sustainable distributions and strong total returns for its investors.
Since the start of the year, the company has generated a return of about 18.2% for its investors. Do note however that the stock took a huge tumble in its price towards the 4th quarter of 2018 and hence, the increase in its share price since the beginning of the year started out from a low base. The company is also relatively new to the market having only been listed since November 2017.
#4 Mapletree Logistic Trust (SGX: M44U)
The only stock on our list today that actually has a sizeable portfolio of properties within Singapore, Mapletree Logistic Trust has a large portfolio of industrial buildings both in Singapore and around the region. It has a portfolio of about 140 properties across Singapore, Hong Kong, Japan, China, Australia, South Korea, Malaysia and Vietnam.
Being a local company, it comes as no surprise that Temasek Holdings is its biggest shareholder, owning more than 30% of the company. It currently has a P/B ratio of 1.15 and a P/E ratio of 10.16. Since the start of the year, the company has generated a return of about 17.6% for its investors.
You can read more about some of the best performing S-REITs in a market update written by Jennifer Tan of SGX.
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4 Stocks This Week is not a recommendation from us to buy or sell any of these stocks. For investors who are keen to find out more, you should continue researching about them before making your investment decisions.