Real estate investment trusts (REITs) are an asset class that investors in Singapore are highly interested in. The opportunity to own properties, not only in Singapore, but the rest of the world is enticing. This is coupled with relatively high yields – returning close to 6.5% per annum in distributions currently.
Since the launch of CapitaLand Mall Trust, the first Singapore-listed REIT, in 2002, Singapore has gone on to see its REITs and business trusts market grow in breath and depth, to a combined market capitalisation of close to $100 billion today.
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The Singapore Exchange (SGX) has attracted REIT and business trust listings not only from Singapore but Europe, USA, China, Hong Kong, Indonesia, Japan, Malaysia, India, and Australia. SGX has also seen diverse listings of retail REITs, commercial REITs, industrial REITs (including logistics REITs), data centre REITs, healthcare REITs and hospitality REITs. In addition, SGX has also attracted business trusts with a portfolio of properties including golf courses, retail properties, industrial properties, infrastructure properties, telecommunication networks, ships, ports and healthcare properties.
Performance Of REITs And Business Trusts In Singapore
In the year-to-date, the SGX S-REIT Index, comprising all REITs listed in Singapore, has declined close to 6.3% on average. This is offset by its 6.5% per annum yield that the REITs pay out on average.
A similar decline was witnessed in all three REIT ETFs listed in Singapore – the Lion-Phillip S-REIT ETF (declining 6.8% in year-to-date 2018); NikkoAM-Straits Trading Asia Ex Japan REIT ETF (declining 6.3% in year-to-date 2018); and the Phillip SGX APAC Dividend Leaders REIT ETF (declining 5.5% in year-to-date 2018).
In contrast, the Straits Times Index (STI) has turned in a 3.9% gain in the year-to-date. On average, companies on the STI offer a dividend yield of 2.8% per annum.
1 New REIT Listing In Singapore In 1Q2017
In 1Q2017, there was one new REIT listed on the SGX – Sasseur REIT – on 28 March 2018. Sasseur REIT has a portfolio of four retail malls in Chongqing, Bishan, Hefei and Kunming, in China.
Listed at an Initial Public Offering (IPO) price of $0.80, Sasseur REIT has dipped 3.1% to trade at $0.78 today.
In the year-to-date 2018, there have been no REIT delistings.
1 REIT To Be Delisted
Two REITs, ESR-REIT and Viva Industrial Trust is set to be merged to form the fourth largest industrial REIT in Singapore, with combined assets of close to $3 billion.
Under the merger scheme, shareholders of Viva Industrial Trust will receive $0.96 per unit. This is 8% higher than its closing price of $0.89 on Thursday (17 May 2018). The $0.96 will be delivered to shareholders in cash (10%) and new ESR-REIT units (90%) at a rate of $0.54. This rate is, however, a premium of 2.9% to ESR-REIT’s closing share price of $0.525 on Thursday (17 May 2018).
Once approved by shareholders, Viva Industrial Trust will be delisted from SGX.
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46 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 23 Feb 2018 (SGD) | Price On 14 May 2018 (SGD) | Dividend Yield (%) + | Return In YTD 2018 (%) + |
| REITs and Stapled Securities | ||||||
| 1 | AIMS AMP Capital Industrial Reit | Industrial (Singapore and Australia) | 1.36 | 1.39 | 7.9 | 3.9 |
| 2 | Ascendas Reit | Industrial (Singapore, Australia and China) | 2.59 | 2.67 | 6.2 | 1.1 |
| 3 | Ascendas Hospitality Trust | Hospitality (Australia, Japan, Singapore and China) | 0.84 | 0.82 | 7.1 | -4.7 |
| 4 | Ascott Residence Trust | Hospitality (Japan, China, Singapore and others) | 1.17 | 1.12 | 6.3 | -6.3 |
| 5 | BHG Retail REIT | Retail (China) | 0.75 | 0.76 | N.A. | 6.2 |
| 6 | Cache Logistics Trust | Industrial (Singapore and Australia) | 0.84 | 0.80 | 7.8 | -2.9 |
| 7 | CapitaLand Commercial Trust | Commercial (Singapore) | 1.74 | 1.77 | 5.0 | -6.3 |
| 8 | CapitaLand Mall Trust | Retail (Singapore) | 1.97 | 2.10 | 5.2 | 1.3 |
| 9 | CapitaRetail China Trust | Retail (China) | 1.54 | 1.56 | 6.6 | -3.2 |
| 10 | CDL Hospitality Trust | Hospitality (Singapore, Australia, Maldives, New Zealand, Japan, United Kingdom) | 1.66 | 1.69 | 5.8 | 2.9 |
| 11 | Cromwell European REIT (EUR) | Commercial (Denmark, France, Germany, Italy, and the Netherlands) | 0.58 | 0.62 | 6.9 | 11.7 |
| 12 | EC World REIT | Logistics (China) | 0.755 | 0.74 | 8.2 | 0.0 |
| 13 | ESR-REIT | Industrial (Singapore) | 0.575 | 0.530 | 7.5 | -1.2 |
| 14 | Far East Hospitality Trust | Hospitality and Commercial (Singapore) | 0.710 | 0.695 | 6.0 | -0.8 |
| 15 | First REIT | Healthcare (Indonesia) | 1.36 | 1.36 | 6.5 | 0.9 |
| 16 | Fortune REIT (HKD) | Retail and Commercial (Hong Kong) | 9.17 | 9.28 | 5.6 | -1.4 |
| 17 | Frasers Centrepoint Trust | Retail (Singapore) | 2.17 | 2.21 | 5.5 | 0.9 |
| 18 | Frasers Commercial Trust | Commercial (Singapore and Australia) | 1.42 | 1.38 | 6.9 | -4.3 |
| 19 | Frasers Hospitality Trust | Hospitality (Singapore, UK, Japan, Australia and Germany) | 0.780 | 0.720 | 6.9 | -4.6 |
| 20 | Frasers Logistics & Industrial Trust | Logistics and Industrial (Australia) | 1.10 | 1.12 | 6.3 | -5.2 |
| 21 | IREIT Global | Commercial (Germany) | 0.790 | 0.775 | N .A | 3.0 |
| 22 | Keppel DC REIT | Data Centres (Singapore, Malaysia, Australia, Germany, Ireland, Italy and UK) | 1.35 | 1.37 | 5.6 | 1.6 |
| 23 | Keppel-KBS US REIT (USD) | Commercial (USA) | 0.890 | 0.885 | 6.7 | -2.2 |
| 24 | Keppel REIT | Commercial (Singapore and Australia) | 1.20 | 1.19 | 5.0 | -2.5 |
| 25 | Lippo Malls Indonesia Trust | Retail (Indonesia) | 0.390 | 0.320 | 8.1 | -17.9 |
| 26 | Manulife REIT (USD) | Commercial (USA) | 0.900 | 0.940 | 6.5 | 6.2 |
| 27 | Mapletree Commercial Trust | Retail and Commercial (Singapore) | 1.57 | 1.60 | 5.6 | 2.2 |
| 28 | Mapletree GCC Trust | Commercial and Retail (China and Hong Kong) | 1.18 | 1.15 | 6.7 | -2.9 |
| 29 | Mapletree Industrial Trust | Industrial (Singapore) | 1.92 | 1.99 | 6.3 | 0.4 |
| 30 | Mapletree Logistics Trust | Industrial (Singapore, Japan, Hong Kong and others) | 1.18 | 1.24 | 6.3 | -3.1 |
| 31 | OUE Commercial REIT | Commercial (Singapore, China) | 0.710 | 0.720 | 6.3 | 2.5 |
| 32 | OUE Hospitality Trust | Hospitality (Singapore) | 0.855 | 0.815 | 6.3 | -2.4 |
| 33 | Parkway Life REIT | Healthcare (Singapore and Japan) | 2.81 | 2.75 | 4.7 | -5.6 |
| 34 | Sasseur REIT | Retail (China) | 0.800^ | 0.785 | 7.6 | N.A. |
| 35 | Sabana REIT | Industrial (Singapore) | 0.390 | 0.425 | N.A | 13.4 |
| 36 | Soilbuild Business Space REIT | Industrial (Singapore) | 0.655 | 0.655 | 7.8 | 2.5 |
| 37 | SPH REIT | Retail (Singapore) | 0.955 | 0.995 | 5.6 | -3.2 |
| 38 | Starhill Global REIT | Retail and Commercial (Singapore, Australia, Malaysia, China and Japan) | 0.725 | 0.685 | 7.2 | -8.8 |
| 39 | Suntec REIT | Commercial and Retail (Singapore) | 1.93 | 1.91 | 5.2 | -9.4 |
| 40 | Viva Industrial Trust | Industrial (Singapore) | 0.875 | 0.890 | 8.2 | -3.5 |
| Other Property Trusts | ||||||
| 41 | Accordia Golf Trust | Golf Courses (Japan) | 0.640 | 0.620 | 7.8 | -8.8 |
| 42 | Ascendas India Trust | Industrial (India) | 1.01 | 1.06 | 6.1 | -6.5 |
| 43 | Dasin Retail Trust | Retail (China) | 0.845 | 0.870 | N.A. | 3.6 |
| 44 | Hutchison Port Holdings Trust | Port Assets (Hong Kong and China) | 0.480 | 0.345 | 7.5 | -13.4 |
| 45 | Keppel Infrastructure Trust | Infrastructure (Singapore) | 0.560 | 0.530 | 7.4 | -3.8 |
| 46 | RHT Health Trust | Healthcare (India) | 0.785 | 0.795 | 6.3 | -4.5 |
| REIT ETFs* | ||||||
| 47 | Lion-Phillip S-REIT ETF | ETF | 1.015 | 0.998 | N.A | -4.7 |
| 48 | NikkoAM-Straits Trading Asia Ex Japan REIT ETF | ETF | 1.085 | 1.093 | 4.5 | -4.5 |
| 49 | Phillip SGX APAC Dividend Leaders REIT ETF | ETF | 1.295 | 1.317 | 4.2 | -4.9 |
+ Based on OCBC Investment Research Indications
* From Bloomberg Markets
^ Sasseur REIT’s listed at $0.800.
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