Real Estate Investment Trusts (REITs) are popular investments in Singapore, as they own a portfolio of properties and pay out relatively good distributions from the rental income they receive on the properties.
In our REITs Report Card column, we feature the performance of REITs every quarter.
How Singapore-listed REITs Performed In The Year-To-Date 2020
The first three months of 2020 has seen its fair share of volatility, with the ongoing US-China trade war sanctions, a generally slowing global economy, and also hit with Covid-19, a novel Coronavirus which originated in Wuhan, China.
This has given rise to greater price fluctuations in the stock market in 2020.
To gauge how Singapore-listed REITs have performed in the year-to-date (ytd) 2020, we take reference from the iEdge S-REIT Index tracking all REITs listed in Singapore.
The iEdge S-REIT Index has risen 2.4% in 2020. We can also see in the chart below, that while prices have increased in the first quarter of 2020, the direction of the market has been volatile.
Chart 1: iEdge S-REIT Index
We can also tell that the 2.4% increase in Singapore REIT prices is a reasonable gain, given that Singapore’s benchmark Straits Times Index (STI) has fallen 8.1% in the same period.
Chart 2: Straits Times Index (STI)
We can also compare Singapore REITs to its global peers to understand how it has fared. is The S&P Global REIT (USD) tracks close to 400 REITs globally, and has dipped 5.0% in the ytd 2020. This highlights that Singapore-listed REITs have actually outperformed its global peers, thus far.
Chart 3: S&P Global REIT (USD)
That said, all this could have changed by the time you read this article, as the market has proven to be relatively volatile. As of 6 March 2020, the information in this article is accurate, and you may want to double-check any information in the article.
S-REITs Total Returns In 1st quarter 2020
One of the biggest draws to investing in REITs is that it pays out distributions on a regular basis. The above charts only depict the price movements, without taking distribution returns into consideration. This means total returns for REITs may be greater 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.
|No.||All REITs, Stapled Securities And Other Trusts, And ETFs
|Price (SGD) ^^^||Distribution Yield +
|Return In YTD 2019 +|
|REITs and Stapled Securities|
|1||CapitaLand Commercial Trust (Singapore, Malaysia)||$1.86||4.8%
|2||Cromwell European REIT (EUR) (Denmark, France, Germany, Italy, the Netherlands, Finland and Poland)||€0.53||7.7%
|3||Elite Commercial REIT||£0.725+++||7.1%^^^^^^
|4||Frasers Commercial Trust (Singapore, Australia and the UK)||$1.64||6.0%
|5||IREIT Global (Germany)||$0.77||7.2%
|6||Keppel REIT (Singapore, Australia and South Korea)||$1.23||4.7%
|7||Keppel Pacific Oak US REIT (USD) (USA)||US$0.735||8.4%
|8||Manulife US REIT (USD (USA)||US$0.97||6.4%
|9||OUE Commercial REIT (Singapore and China)||$0.48||6.7%
|10||Prime US REIT (USA)||US$0.955||6.9%
(Singapore and Australia)
|12||BHG Retail REIT (China)||$0.63||5.6%++
|13||CapitaLand Mall Trust (Singapore and China)||$2.27||5.6%
|14||CapitaLand Retail China Trust (China)||$1.41||7.0%
|15||Frasers Centrepoint Trust (Singapore and Malaysia)||$2.79||4.7%
|16||Lendlease Global Commercial REIT (Singapore and Italy)||$0.86||5.3%
|17||Lippo Malls Indonesia Trust (Indonesia)||$0.21||11.4%
|18||Mapletree Commercial Trust (Singapore)||$2.10||4.5%
|19||Mapletree North Asia Commercial Trust (Hong Kong, China and Japan)||$1.10||6.5%
|20||Sasseur REIT (China)||$0.79||8.0%
|21||SPH REIT (Singapore and Australia)||$1.01||5.6%
|22||Starhill Global REIT (Singapore, Australia, Malaysia, China and Japan)||$0.675||6.8%
|23||AIMS APAC REIT (Singapore and Australia)||$1.40||7.5%
|24||Ascendas REIT (Singapore, Australia and the UK)||$3.06||5.3%
|25||Cache Logistics Trust (Singapore and Australia)||$0.685||8.2%
|26||EC World REIT (China)||$0.705||8.9%
|28||Frasers Logistics & Industrial Trust (Australia, Germany, and the Netherlands)||$1.24||6.1%
|29||Keppel DC REIT (Singapore, Malaysia, Australia, Germany, the Netherlands, Ireland, the UK and Italy)||$2.32||3.9%
|30||Mapletree Industrial Trust (Singapore and the USA)||$2.68||4.7%
|31||Mapletree Logistics Trust (Singapore, Malaysia, China, Japan, Hong Kong, Australia, South Korea and Vietnam)||$1.85||4.4%
|32||Sabana REIT (Singapore)||$0.45||6.4%
|33||Soilbuild Business Space REIT (Singapore and Australia)||$0.495||9.1%
|34||ARA US Hospitality Trust (USA)||US$0.75||7.4%++
|35||Ascott Residence Trust (Singapore, Malaysia, Australia, Japan, China, the USA, Vietnam, Indonesia, the Philippines, Germany, France, Spain and Belgium)||$1.18||6.4%
|36||CDL Hospitality Trust (Singapore, Australia, the Maldives, New Zealand, Japan, the UK, Germany and Italy)||$1.38||6.5%
|37||Eagle Hospitality Trust (USA)||US$0.405||14.8%
|38||Far East Hospitality Trust (Singapore)||$0.595||5.9%
|39||Frasers Hospitality Trust (Singapore, the UK, Japan, Australia and Germany)||$0.65||6.9%
|40||First REIT (Indonesia, Singapore and South Korea)||$0.98||8.7%
|41||Parkway Life REIT (Singapore, Malaysia and Japan)||$3.43||4.0%
|Other Property Trusts|
|42||Accordia Golf Trust (Japan)||$0.615||8.9%
|43||Ascendas India Trust (India)||$1.65||4.9%
|44||Dasin Retail Trust (China)||$0.815||8.6%
|45||Hutchison Port Holdings (Hong Kong and China)||US$0.147||9.0%
|46||Keppel Infrastructure Trust (Singapore, Australia and New Zealand)||$0.52||7.5%
|REIT ETFs +++|
|47||Lion-Phillip S-REIT ETF||$1.179||4.8%
|48||NikkoAM-Straits Trading Asia Ex Japan REIT ETF||$1.273||4.4%
|49||Phillip SGX APAC Dividend Leaders REIT ETF||$1.43||3.1%
Footnotes For Clarity
+ Based on OCBC Investment Research (as of 2 March 2020)
++ From Individual REIT results announcement
+++ From SGX / Bloomberg
++++ These companies did not announce any distributions in the most recent quarter
^ CapitaLand Commercial Trust distribution was from 29 July to 31 December 2019. Including distributions from 1 July to 28 July 2019, paid on 29 August 2019, 2H2019 distribution would have been $0.0448.
^^ Mapletree Commercial Trust distribution was from 25 October to 31 December 2019. Including distributions from 1 October to 24 October 2019, paid on 24 November 2019, 3Q2019 distribution would have been $0.0246.
^^^ Mapletree Industrial Trust distribution included a $0.002 balance distribution from the previous quarter. Disregarding this, its distribution would have been $0.0316.
^^^^ Ascendas India Trust distribution was as advanced distribution for the period from 28 November to 31 December 2019. It would not have paid out a distribution in the current quarter otherwise.
^^^^^ Dasin Retail Trust distribution was from 12 September to 31 December 2019. Including distributions from 1 July to 11 September 2019, 2H2019 distribution would have been $0.0343.
^^^^^^ Based on Elite Commercial REIT’s IPO prospectus
Best Performing S-REIT In YTD 2020
Best Total Return In YTD 2020: In ytd 2020, Keppel DC REIT delivered the highest total return of 14.5%, making it the best performing REIT. It also pays a 3.9% distribution yield, which has narrowed as its share price increased.
Other counters that achieved relatively good returns in ytd 2020 include:
- Keppel DC REIT (14.5%)
- Ascendas India Trust (9.4%)
- Mapletree Logistics Trust (7.1%)
- Mapletree Industrial Trust (6.7%)
- Elite Commercial REIT (6.5%)
On the opposite end of the spectrum, Eagle Hospitality Trust was the worst performing counter in ytd 2020, with a total return of negative 24.4%. The already weakening US tourism market was further hampered by the Covid-19 spread affecting global tourism.
Covid-19 also played a role in many of the other poor performing REITs results, impacting mainly REITs with Chinese properties or dependent on Chinese tourism. Other poor performing REITs include:
- Eagle Hospitality Trust (-24.4%)
- Far East Hospitality Trust (-18.4%)
- OUE Commercial REIT (-15.1%)
- Hutchison Port Holdings (-13.5%)
- CDL Hospitality Trust (-12.7%)
- ARA US Hospitality Trust (-11.1%)
- CapitaLand Retail China Trust (-11.0%)
- Sasseur REIT (-10.7%)
- BHG Retail REIT (-9.5%)
- Mapletree Commercial Trust (-9.3%)
Best Distribution Yield: Paying out a distribution of 14.8%, Eagle Hospitality Trust is currently the REIT with the highest distribution yield. However, we need to be more holistic is assessing “best” as its total return for ytd 2020, as it is also the worst performing REIT.
Many of the other REITs with high distributions yields are also listed among the poorest performing REITs in ytd 2020. If we are able to uncover hidden opportunities among these REITs with high distributions, the upside may be worth taking the risk. Other counters that are paying a distribution yield of higher than 8.5% include:
- Eagle Hospitality Trust (14.8%)
- Lippo Malls Indonesia Trust (11.4%)
- Soilbuild Business Space REIT (9.1%)
- Hutchison Port Holdings (9.0%)
- EC World REIT (8.9%)
- Accordia Golf Trust (8.9%)
- First REIT (8.7%)
- Dasin Retail Trust (8.6%)
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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