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S-REIT Report Card: Here’s How Singapore REITs Performed In Fourth Quarter 2019

Singapore REITs have risen 23.5% in the year-to-date 2019.


REITs are a popular and important part of the Singapore Exchange (SGX). There are close to 50 listed REITs, property-related business trust and REIT ETFs in Singapore. There are also numerous other unit trusts invested into Singapore and foreign listed REITs in Singapore.

To get a better understanding of how well or badly Singapore REITs have performed, we dedicate significant time and resources to publish a report card each quarter. If you wish to catch up on previous quarters, you can refer to our regular REITs Report Card column.

Read Also: Complete Guide To Investing In Singapore REITs

How Has Singapore REITs Performed In The Year-To-Date 2019

To gauge how the Singapore REIT market has performed in the year-to-date (YTD) 2019, we can look at the iEdge S-REIT Index and the iEdge S-REIT 20 Index.

Tracking all Singapore-listed REITs, the iEdge S-REIT Index has risen 17.7% in 2019. If we just look at just the last quarter of the year, from October to the YTD, REITs in Singapore have actually dipped about 1.6%.

Chart 1: iEdge S-REIT Index

Source: SGX

On the other hand, the iEdge S-REIT 20 Index, as its name suggests, tracks the top 20 largest and most tradeable Singapore REITs. This index is a subset of the iEdge S-REIT Index, and comprises the top REITs also listed within it.

As you can see, the chart closely resembles the one above. This is because the biggest REITs are also found within the earlier chart, and moreover, they have the biggest impact on it as well.

Similar to the previous chart, the iEdge S-REIT 20 Index also experienced an increase of 18.1% in the YTD 2019. In the last quarter, since October, the index has dropped 2.1%.

This tells us two things, 1) larger REITs in Singapore outperformed smaller REITs during in the YTD 2019; and 2) when prices dipped in the final quarter since October, the larger REITs dropped by more as well.

Chart 2: iEdge S-REIT 20 Index

Source: SGX

Lastly, we can look at a global REIT index to really understand how Singapore REITs have fared compared to its global peers. One that we can compare against is the S&P Global REIT (USD), which has risen close to 19.2% in the YTD 2019. This shows that while global REITs may have risen by more than Singapore REITs, the figures are relatively close.

Chart 3: S&P Global REIT (USD)

Of course, the main attractions of REITs investing is that it distributes relatively high yields to investors. The above charts show only the price movements, without taking distribution returns into consideration yet. This means total returns for REITs is more than the figures stated above.

In the section below, we look at the distributions and yields of all the Singapore-listed REITs in the latest quarterly announcements.

S-REITs Total Returns In YTD 2019

No. All REITs, Stapled Securities And Other Trusts, And ETFs
(Property Locations)
Price (SGD) ^^^  Distribution Yield +
(Actual)
Return In YTD 2019 +
REITs and Stapled Securities
Commercial/Office REITs
1 CapitaLand Commercial Trust (Singapore, Malaysia) $1.98 4.5%
(N.A.)++++ 
18.6%
2 Cromwell European REIT (EUR)
(Denmark, France, Germany, Italy, the Netherlands, Finland and Poland)
€0.505 8.1%
(N.A.)++++ 
23.5%
3 Frasers Commercial Trust
(Singapore, Australia, and UK)
$1.62 6.0%
($0.024)
25.8%
4 IREIT Global
(Germany)
$0.795 7.6%
(N.A.)++++ 
18.3%
5 Keppel REIT
(Singapore, Australia and South Korea)
$1.22 4.6%
($0.014)
12.0%
6 Keppel Pacific Oak US REIT (USD)
(USA)
US$0.75 8.1%
(N.A.)++++ 
34.9%
7 Manulife US REIT (USD)
(USA)
US$0.935 6.4%
($0.0147) ^
22.8%
8 OUE Commercial REIT
(Singapore, China)
$0.54 5.9%
($0.0053)^^^^^
18.6%
9 Prime US REIT
(USA)
US$0.95 6.9%
(N.A.)++++
2.3%++
10 Suntec REIT
(Singapore, Australia)
$1.84 5.2%
($0.02365)
12.8%
Retail REITs
11 BHG Retail REIT
(China)
$0.69 6.0%++
(N.A.)++++
N.A.
12 CapitaLand Mall Trust
(Singapore, China)
$2.52 4.8%
($0.0306)
16.2%
13 CapitaLand Retail China Trust
(China)
$1.54 6.7%
(N.A.)++++
22.1%
14 Frasers Centrepoint Trust
(Singapore)
$2.72 4.8%
($0.02913)
31.7%
15 Lendlease Global Commercial REIT
(Singapore, Italy)
$0.92 5.8%^^^^
(N.A.)++++
4.5%^^^^
16 Lippo Malls Indonesia Trust
(Indonesia)
$0.235 9.5%++
($0.0056)
41.0%
17 Mapletree Commercial Trust
(Singapore)
$2.31 4.1%
($0.02921)
47.5%
18 Mapletree North Asia Commercial Trust
(China and Hong Kong, and Japan)
$1.16 6.8%
($0.01937)
8.0%
19 Sasseur REIT
(China)
$0.845 7.7%
($0.0164)
42.0%
20 SPH REIT
(Singapore and Australia)
$1.11 5.2%
($0.0146)
16.9%
21 Starhill Global REIT
(Singapore, Australia, Malaysia, China and Japan)
$0.725 6.3%
($0.0113)
13.2%
Industrial REITs
22 AIMS APAC REIT
(Singapore and Australia)
$1.44 7.2%
($0.025)
16.4%
23 Ascendas REIT
(Singapore, Australia and UK)
$2.89 5.6%
($0.07834)++++
20.9%
24 Cache Logistics Trust
(Singapore and Australia)
$0.705 8.2%
($0.01313)
9.5%
25 EC World REIT
(China)
$0.735 8.6%
($0.01498)
15.4%
26 ESR-REIT
(Singapore)
$0.53 7.5%
($0.01145)
12.3%
27 Frasers Logistics & Industrial Trust
(Australia, Germany, and the Netherlands)
$1.24 5.9
($0.0101)+++
27.7%
28 Keppel DC REIT
(Singapore, Malaysia, Australia, Germany, the Netherlands, Ireland, UK, Italy)
$1.99 4.0%

($0.0181)+++

58.8%
29 Mapletree Industrial Trust
(Singapore and USA)
$2.49 5.0%
($0.0293)+++
37.8%
30 Mapletree Logistics Trust
(Singapore, Malaysia, China, Japan, Hong Kong, Australia, South Korea and Vietnam)
$1.65 4.9%
($0.02705)
38.7%
31 Sabana REIT
(Singapore)
$0.475 5.7%
($0.0075)
30.0%
32 Soilbuild Business Space REIT
(Singapore, Australia)
$0.485 9.9%
($0.00918)
-9.2%
Hospitality REITs
33 ARA US Hospitality Trust
(USA)
US$0.845 N.M.
(N.A.)++++
N.A.
34 Ascendas Hospitality Trust
(Australia, Japan, Singapore and South Korea)
$1.08 4.9%++
($0.0266)++++
48.7%
35 Ascott Residence Trust
(Singapore, Malaysia, Australia, Japan, China, USA, Vietnam, Indonesia, the Philippines, Germany, France, Spain and Belgium)
$1.31 5.5%
(N.A.)++++
28.9%
36 CDL Hospitality Trust
(Singapore, Australia, the Maldives, New Zealand, Japan, UK, Germany and Italy)
$1.60 5.6%
(N.A.)++++
15.9%
37 Eagle Hospitality Trust
(USA)
US$0.535 10.3%
(N.A.)++++
-31.4%
38 Far East Hospitality Trust
(Singapore)
$0.715 5.6%
($0.0104)
25.1%
39 Frasers Hospitality Trust
(Singapore, Malaysia, UK, Japan, Australia and Germany)
$0.71 6.2%
($2.174)++++
7.8%
Healthcare REITs
40 First REIT
(Indonesia, Singapore, South Korea)
$1.02 8.4%
($0.0215)
12.7%
41 Parkway Life REIT
(Singapore, Malaysia and Japan)
$3.25 4.0%
($0.033)
29.1%
Other Property Trusts
42 Accordia Golf Trust

(Japan)

$0.61 8.7%
($0.0261)
25.6%
43 Ascendas India Trust
(India)
$1.56 4.9%
(N.A.)++++
52.7%
44 Dasin Retail Trust
(China)
$0.83 8.3%
(N.A.)++++
4.0%
45 Hutchison Port Holdings
(Hong Kong and China)
US$0.159 9.8%
(N.A.)++++
-29.8%
46 Keppel Infrastructure Trust
(Singapore, Australia and New Zealand)
$0.53 7.4%
($0.0093)
19.0%
REIT ETFs ++
47 Lion-Phillip S-REIT ETF $1.146 4.3%
(N.A.)++++
23.2%
48 NikkoAM-Straits Trading Asia Ex Japan REIT ETF $1.245 4.0%
($0.0125)
17.5%
49 Phillip SGX APAC Dividend Leaders REIT ETF $1.092 6.0%
(N.A.)++++
18.1%

 

Footnotes For Clarity:

Based on OCBC Investment Research

++ From Bloomberg Markets

+++ These companies paid out advanced distribution for the quarter

++++ These companies did not announce any distributions in the most recent quarter

Manulife US REIT announced a 3Q 2019 distribution of US$0.0148. The remaining US$0.0001 will be paid along with its 4Q distributions in the next quarter

^^ Based on IREIT Global’s 9M2019 distribution

^^^ On 18 November 2019. Prices in Singapore Dollar (SGD), unless otherwise stated

^^^^ Based on Lendlease Global Commercial REIT IPO prospectus

^^^^^ OUE Commercial Trust announced a clean-up distribution of $0.0053 for the period before its merger with OUE Hospitality Trust

2 REITs Delisted, 1 REIT To Be Delisted, 1 New REIT Was Listed, And 1 REIT Changed Its Name

In the most recent quarter, there were two REITs that delisted: Fortune REIT and OUE Hospitality REIT. Hong Kong-based Fortune REIT was a secondary listing on SGX, and was delisted on 11 October 2019. It cited cost of compliance and low trading volume for the reason.

On the other hand, OUE Hospitality Trust, which delisted on 17 September 2019, was merged into OUE Commercial REIT to form a larger entity. This means its properties are still available for REIT investors to buy into. It cited higher trading liquidity, bigger investor base, better access to investor funds and a potential for re-rating as some of the reasons for the merger.

Ascendas Hospitality Trust’s properties will soon be merged into Ascott Residence Trust, creating Asia Pacific’s largest hospitality trust. Post-merger, Ascendas Hospitality Trust’s units will be delisted from SGX on 3 January 2020. This follows the merger of the two respective REIT’s parents CapitaLand and Ascendas-Singbridge.

During this period, Lendlease Global Commercial REIT was listed on the SGX on 2 October 2019. With an IPO price of $0.88, Lendlease has already risen close to 4.5% in under two months to $0.92.

Read Also: Lendlease Global Commercial REIT: 10 Things You Should Know Before Subscribing

Finally, Keppel Pacific Oak US REIT was renamed from Keppel-KBS US REIT previously. This became effective from 5 September 2019. The main reason for this was that it entered into a new outsourcing management agreement with a different US property manager. This was brought about after the listing of Prime US REIT, which is managed by KBS, and would have brought about some degree of conflicts of interest.

Best Performing S-REIT In YTD 2019

Best Total Return In YTD 2019: In YTD 2019, Keppel DC REIT delivered the highest total return of 58.8%, making it the best performing REIT. It also pays a 4.0% distribution yield, and should continue to remain a stable investment for REIT investors.

Ascendas India Trust has also been a good performing REIT, with a total return of 52.7% in YTD 2019.

Other counters that achieved higher than 30% returns include:

– Keppel Pacific Oak US REIT (34.9%)
– Frasers Centrepoint Trust (31.7%)
– Lippo Malls Indonesia Trust (41.0%)
– Mapletree Commercial Trust (47.5%)
– Sasseur REIT (42.0%)
– Ascendas Hospitality Trust (48.7%)

On the opposite end of the spectrum, Eagle Hospitality Trust was the worst performing counter in YTD 2019, with a total return of negative 31.4%. Other poor performing REITs include:

– Hutchison Port Holdings (-29.8%)
– Soilbuild Business Space REIT (-9.2%)

Best Distribution Yield: As a result of a sharp unit price drop, Eagle Hospitality Trust, Soilbuild Business Space REIT and Hutchison Port Holdings are paying high distribution yields of 10.3%, 9.9% and 9.8% respectively. They are riskier REITs to invest in, and their current distribution yields reflect that.

Paying out a distribution of 10.0%, Accordia Golf Trust currently has the highest distribution yield of the REITs and property-related business trusts listed in Singapore. However, we need to be more holistic is assessing “best” as its total return for YTD 2019 is 9.1% – which means its share price has likely tapered in the year.

Other counters that are paying a distribution yield of higher than 8% include:

– Lippo Malls Indonesia Trust (9.5%)
– Accordia Golf Trust (8.7%)
– EC World REIT (8.6%)
– First REIT (8.4%)
– Dasin Retail Trust (8.3%)
– Cache Logistics Trust (8.2%)
– Keppel Pacific Oak US REIT (8.1%)
– Cromwell European REIT (8.1%)

Of course, we should always look at a REIT’s property portfolio, and other relevant information, when deciding to invest in them.

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