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How REITs In Singapore Performed In 2016

There were 3 new REITs and 1 REIT ETF listed on the SGX in 2016

For the past few years, Real Estate Investment Trusts (REITs) have been a hot investment topic in Singapore. This is mainly because people on the island-nation love property and dividends – the two basic traits of REITs investments.

With the start of 2017, it’s also timely that people start reviewing their investment portfolios over the past year. Overall, the Straits Times Index (STI) has returned approximately 5.19% in 2016[1], including dividends, and we can use this as a gauge for our investments in other stocks or financial products.

In this article, we look at how REITs in Singapore have performed in 2016. As a rule of thumb, we can use the returns of the SGX S REIT 20 Index, which is an index of 20 of the largest and most tradeable REITs in Singapore, which is approximately 9.9%.[2]

Also Read: 5 Things You Need To Know About Investing In REITs In Singapore

3 New REIT, And 1 REIT ETF, Listings In Singapore In 2016

There were three new REIT listings in Singapore in 2016 – EC World REIT, Fraser Logistics and Industrial Trust and Manulife REIT. While we can make some assumptions on how they have performed, they have only been listed for approximately six months and this does not give a complete picture.

EC World REIT is focused on China’s e-commerce space with six properties in China. When Fraser Logistics and Industrial Trusts was listed, there was some fanfare as this was the largest new listing, raising over $903 million, in Singapore in the past three years. Manulife REIT’s listing was also greeted with enthusiasm as it had been delayed since initial plans in mid-2015.

In addition, 2016 also saw the first Singapore listing of a REIT ETF, the Phillip SGX APAX Dividend Leaders REIT ETF, in Singapore.

Also Read: What You Need To Know About Singapore’s First REIT ETF Before Investing In It

Here’s how the new listings fared in 2016.

No. Newly Listed REITs, Stapled Securities And Trusts Industry (Country) Listed On Listing Price Price On 1 Jan 2017 Expected Dividend Yield In 2017+ Return In 2016
1 EC World REIT Logistics (China) 28 July 2016 $0.810 $0.76 7.3% -4.9%*
2 Fraser Logistics and Industrial Trust Logistics and Industrial (Australia) 21 June 2016 $0.890 $0.925 7.3% 6.0%**
3 Manulife REIT (USD) Commercial (USA) 20 May 2016 $0.825 $0.83 7.1% 1.2%***
4 Phillip SGX APAC Dividend Leaders REIT ETF Diversified (APAC) 20 October 2016 $1.310 $1.260 4.8% -3.8%***

+ Based on price at listing

* Taking into consideration dividend payment of 0.991 cents paid on 28 November 2016.

** Taking into consideration dividend payment of 1.84 cents paid on 15 December 2016

*** No distribution in 2016

43 REITs and Property-Related Stapled Securities And Trusts In Singapore

As at 2 January 2017, there are 37 REITs and Stapled Securities listed in Singapore.

No. All REITs, Stapled Securities And Other Trusts Industry (Country) Price On 1 Jan 2016 Price On 1 Jan 2017 Dividend Yield In 2016++ Return In 2016++
REITs and Stapled Securities
1 AIMS AMP Capital Industrial Reit Industrial (Singapore and Australia) 1.375 1.31 8.63% 3.90%
2 Ascendas Reit Industrial (Singapore, Australia and China) 2.28 2.27 8.88% 8.44%
3 Ascendas Hospitality Trust Hospitality (Australia, Japan, Singapore and China) 0.74 0.705 7.69% 2.96%
4 Ascott Residence Trust Hospitality (Japan, China, Singapore and others) 1.185 1.13 8.46% 3.82%
5 Cache Logistics Trust Industrial (Singapore and Australia) 0.91 0.81 8.70% -2.29%
6 Cambridge Industrial Trust Industrial (Singapore) 0.565 0.54 7.99% 3.57%
7 CapitaLand Commercial Trust Commercial (Singapore) 1.35 1.48 8.84% 18.47%
8 CapitaLand Mall Trust Retail (Singapore) 1.93 1.885 5.90% 3.57%
9 CapitaRetail China Trust Retail (China) 1.49 1.37 7.70% -0.35%
10 CDL Hospitality Trust Hospitality (Singapore, Australia, Maldives, New Zealand, Japan, United Kingdom) 1.325 1.34 7.33% 8.46%
11 Far East Hospitality Trust Hospitality and Commercial (Singapore) 0.665 0.6 7.30% -2.47%
12 First REIT Healthcare (Indonesia) 1.2 1.265 6.66% 12.08%
13 Fortune REIT (HKD) Retail and Commercial (Hong Kong) 7.9 8.61 5.61% 14.59%
14 Frasers Commercial Trust Commercial (Singapore and Australia) 1.27 1.26 7.80% 7.01%
15 Frasers Centrepoint Trust Retail (Singapore) 1.845 1.9 6.21% 9.19%
16 Frasers Hospitality Trust Hospitality (Singapore, UK, Japan, Australia and Germany) 712 0.65 8.29% -91.62%
17 IREIT Global Commercial (Germany) 0.69 0.715 8.69% 12.31%
18 Keppel DC REIT Data Centres (Diversified) 0.998 1.185 5.59% 24.32%
19 Keppel REIT Commercial (Singapore and Australia) 0.93 1.055 6.23% 19.67%
20 Lippo Malls Indonesia Trust Retail (Indonesia) 0.32 0.37 9.05% 24.68%
21 Mapletree Industrial Trust Industrial (Singapore) 1.52 1.645 6.88% 15.10%
22 Mapletree GCC Trust Commercial and Retail (China and Hong Kong) 0.915 0.95 7.77% 11.59%
23 Mapletree Logistics Trust Industrial (Singapore, Japan, Hong Kong and others) 0.99 1.02 7.24% 10.27%
24 OUE Commercial REIT Commercial (Singapore, China) 0.655 0.695 7.28% 13.39%
25 OUE Hospitality Trust Hospitality (Singapore) 0.717 0.66 7.50% -0.45%
26 Parkway Life REIT Healthcare (Singapore and Japan) 2.33 2.36 5.27% 6.55%
27 Sabana REIT Industrial (Singapore) 0.625 0.38 13.884% -25.36%
28 Saizen REIT**** Cash (Sold off entire Japan Hospitality portfolio) 1.09 0.051 22.73% 2177.82%
29 Soilbuild Business Space REIT Industrial (Singapore) 0.764 0.64 9.59% -6.64%
30 SPH REIT Retail (Singapore) 0.955 0.95 5.79% 5.27%
31 Starhill Global REIT Retail and Commercial (Singapore, Australia, Malaysia and others) 0.755 0.74 6.99% 5.00%
32 Suntec REIT Commercial and Retail (Singapore) 1.55 1.65 6.16% 12.61%
33 Viva Industrial Trust Industrial (Singapore) 0.71 0.755 9.65% 15.98%
34 BHG Retail REIT Retail (China) 0.8 0.655 4.25% -13.77%
35 Manulife REIT (USD) Commercial (USA) 0.825 0.83 N.A*** 0.61%
36 EC World Reit Logistics (China) 0.81 0.76 1.30%* -4.87%
37 Frasers L&I Tr Logistics and Industrial (Australia) 0.89 0.925 1.99%** 5.92%
Other Property Trusts
38 Keppel Infrastructure Trust Infrastructure (Singapore) 0.51 0.475 5.87% -0.99%
39 Ascendas India Trust Industrial (India) 0.87 1.015 5.41% 22.08%
40 Accordia Golf Trust Golf Courses (Japan) 0.535 0.63 10.73% 28.49%
41 Hutchison Port Holdings Trust Port Assets (Hong Kong and China) 0.53 0.435 9.69%

 

 -8.24%
42 Religare Health Trust Healthcare (India) 1.00 0.915 35.21%**** 26.71%
43 Croesus Retail Trust Retail (Japan) 0.808 0.835 8.46% 11.80%

++ Based on Price as at 1 January 2017

* Taking into consideration dividend payment of 0.991 cents paid on 28 November 2016.

** Taking into consideration dividend payment of 1.84 cents paid on 15 December 2016

*** No distribution in 2016

**** Includes distribution from divestment

Poised To Play Bigger Roles In Singapore’s Investment Market

In Singapore, there are three REITs and trusts already included on the Straits Time Index (STI), an index that tracks the Singapore’s 30 largest stocks. They are Ascendas REIT, CapitaLand Commercial Trust and CapitaLand Mall Trust. They are the largest and most liquid REITs in Singapore and offer investors a good way to get started in REITs either by investing in the STI or through these individual REITs.

REITs are also set to play an increasingly more important role in Singapore as there are three REITs in the reserve list of the STI. This means should any of the STI components fail to meet the requirements to remain within the index, these stocks will replace them. These counters are Suntec REIT, Mapletree Commercial Trust and Keppel REIT.

What are your thoughts about how REITs will fare in 2017? Discuss it with us on Facebook.

 

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