January 2020 showed that Singapore REITs was the top net buy sector, as it generated net institutional inflows of S$174.9 million. This contrasted the net outflows of S$102.5 million and S$127.5 million in December 2019 and November 2019 respectively.
The top institutional net buy REITs in January generated a total return of 8.1%. These were Capitaland Commercial Trust (+$68.1 million), Ascendas REIT (+S$64.0 million), CapitaLand Mall Trust (+S$25.7 million) and Mapletree Industrial Trust (+S$22.3 milion). Through the calendar year 2019, the average total return was 25.2% which brought the 3-year total return to 66.9%.
Let’s take a closer look into the top 4 international net buy REITs and the business that they are involved in.
CapitaLand Commercial Trust (SGX: C61U)
CapitaLand Commercial Trust (CCT) and CapitaLand Mall Trust (CMT) have brought in high fund inflows in early 2020 after announcing their proposed merger to create Asia Pacific’s third-largest REIT – CapitaLand Integrated Commercial Trust (CICT). This comes through in an S$8.3 million stock deal. The merger, at least the fifth tie-up among Singapore-listed REITs in the past 12 months, is expected to create a combined entity with a market cap of about S$17 billion and property value of over $20 billion.
CCT aims to own and invest in income-producing commercial real estate and real estate-related assets. Currently, its portfolio includes over 5 million square feet comprises eight well-located and distinguished properties in Singapore’s Central Area and two in Frankfurt, Germany.
As of 21 February 2020, CapitaLand Commercial Trust has a market cap of about S$7,869.6 million and closed at $2.050 per share.
Ascendas REIT (SGX: A17U)
Ascendas REIT is the largest and most diversified business space and industrial REIT listed in Singapore. Its portfolio consists of 102 properties in Singapore, 26 properties in Australia and 2 business park properties in China. Its total asset base is valued at about S$8.3 billion.
Ascendas REIT’s properties cater to a tenant base of about 1,430 international and local companies hailing from a range of industries including research and development, life sciences, informational technology, engineering, light manufacturing, logistics, electronics, telecommunications, manufacturing services and more.
As of 21 February 2020, its market cap was S$11,903.8 million and it closed at $3.280 per share.
CapitaLand Mall Trust (SGX: C38U)
CMT is, at present, the largest mall owner in Singapore, managing 16 shopping centres on the island state. CMT owns and invests in quality income-producing assets which are used or predominantly used for retail purposes primarily in Singapore. CMT’s portfolio consists of a diverse list of close to 3,000 leases with local and international retailers, with an achieved committed occupancy of 97.2%.
CMT has a market cap of S$9,222.01 million and $2.510 per share as of 21 February 2020.
Mapletree Industrial Trust (SGX: ME8U)
Mapletree Industrial Trust (MIT) was constituted as a private trust on 29 January 2008. MIT acquired its portfolio of 64 properties from JTC Corporation on 1 July 2008, which consisted of 27 property clusters.
MIT is a Singapore REIT established with the principal investment strategy of investing, directly or indirectly, in a diversified portfolio of income-producing real estate used mainly for industrial purposes, as well as real estate-related assets. Mapletree Industrial Trust Management Ltd is the manager of MIT.
MIT closed with a market cap of S$6,303.9 million and $2.960 per share as of 21 February 2020.
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