Real Estate Investment Trusts (REITs) are one of the most popular investment choices for investors in Singapore. This is because REITs give investors exposure to the property market, in Singapore and in diverse overseas markets, as well as offer relatively good returns.
In 2017, the SGX S-REIT 20 Index, comprising 20 of the largest and most highly-traded REITs listed in Singapore, delivered a return of close to 27.1%. This strong showing has been followed up by relative weakness in the year-to-date 2018, delivering a return of negative 4.8%.
Compared to the broad market, the Straits Times Index (STI) has delivered a slightly lower return of 18.1% in 2017, but continued to deliver a return of 4.3% in the year-to-date 2018.
This month, majority of the REITs announced their FY2017 results. Here’s a breakdown of how the individual REITs have performed.
1 New REIT Listing In Singapore In 4Q2017
In 4Q2017, there was one new REIT listed on the Singapore Exchange (SGX) – Cromwell European REIT. This followed several months of deliberation where it had sought to list, then decided against it, before finally carving out a more appealing portfolio to list on 30 November 2017.
Holding 74 properties across five European countries – Denmark; France; Germany; Italy; and the Netherlands – is the first Euro-denominated REIT and the first diversified Pan-European portfolio REIT to list in Singapore. At an Initial Public Offering Price of €0.55, Cromwell European REIT (CEREIT), has increased 5.5%, closing at €0.58 on 23 February 2018.
Overall, there were three new REIT listings – Cromwell European REIT; Keppel-KBS US REIT; and Dasin Retail Trust – and one new REIT ETF listing – Lion-Phillip S-REIT ETF – on the SGX in 2017. This is contrasted with two REIT delistings – Croesus Retail Trust; and Saizen REIT – on the SGX in the year.
In the year-to-date 2018, there have been no new REIT listings or delistings.
1 REIT To Be Listed, 1 Trust To Be Delisted
Sasseur REIT, with a portfolio of four malls in Chongqing, Bishan, Hefei and Kunming, is reportedly gauging investor interest with an eye on listing in Singapore in March.
In our previous S-REIT report, we noted that RHT Health Trust had received an offer from Fortis healthcare, its controlling shareholder, to buy out its entire portfolio of Indian healthcare assets. Since then, they have signed a master purchase agreement, on 12 February, for Fortis to pay 46.5 billion Indian Rupees for its healthcare assets.
45 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 21 Nov 2017 (SGD)||Price On 23 Feb 2018 (SGD)||Dividend Yield (%) +||Return In YTD 2018 (%) +|
|REITs and Stapled Securities|
|1||AIMS AMP Capital Industrial Reit||Industrial (Singapore and Australia)||1.40||1.36||7.8||-2.4|
|2||Ascendas Reit||Industrial (Singapore, Australia and China)||2.65||2.59||6.2||-5.5|
|3||Ascendas Hospitality Trust||Hospitality (Australia, Japan, Singapore and China)||0.865||0.84||6.4||–|
|4||Ascott Residence Trust||Hospitality (Japan, China, Singapore and others)||1.19||1.17||6.3||-2.9|
|5||BHG Retail REIT||Retail (China)||0.745||0.75||N.A||1.4|
|6||Cache Logistics Trust||Industrial (Singapore and Australia)||0.860||0.84||7.5||1.3|
|7||CapitaLand Commercial Trust||Commercial (Singapore)||1.91||1.74||5.1||-7.9|
|8||CapitaLand Mall Trust||Retail (Singapore)||2.06||1.97||5.6||-7.2|
|9||CapitaRetail China Trust||Retail (China)||1.67||1.54||6.7||-1.3|
|10||CDL Hospitality Trust||Hospitality (Singapore, Australia, Maldives, New Zealand, Japan, United Kingdom)||1.64||1.66||5.9||2.3|
|11||Cromwell European REIT (EUR)||Commercial (Denmark, France, Germany, Italy, and the Netherlands)||N.A||0.58||7.7||0.9|
|12||EC World Reit||Logistics (China)||0.765||0.755||N.A||-0.7|
|14||Far East Hospitality Trust||Hospitality and Commercial (Singapore)||0.700||0.710||5.9||-0.7|
|15||First REIT||Healthcare (Indonesia)||1.36||1.36||6.5||-2.9|
|16||Fortune REIT (HKD)||Retail and Commercial (Hong Kong)||9.44||9.17||5.5||0.4|
|17||Frasers Centrepoint Trust||Retail (Singapore)||2.20||2.17||5.8||-4.1|
|18||Frasers Commercial Trust||Commercial (Singapore and Australia)||1.42||1.42||7.0||-4.7|
|19||Frasers Hospitality Trust||Hospitality (Singapore, UK, Japan, Australia and Germany)||0.775||0.780||6.6||–|
|20||Frasers Logistics & Industrial Trust||Logistics and Industrial (Australia)||1.10||1.10||6.4||-6.9|
|21||IREIT Global||Commercial (Germany)||0.765||0.790||N.A||0.6|
|22||Keppel DC REIT||Data Centres (Diversified)||1.39||1.35||5.5||-0.4|
|23||Keppel-KBS US REIT (USD)||Commercial (USA)||0.910||0.890||6.8||-2.8|
|24||Keppel REIT||Commercial (Singapore and Australia)||1.19||1.20||5.0||-4.5|
|25||Lippo Malls Indonesia Trust||Retail (Indonesia)||0.430||0.390||8.4||-1.2|
|26||Manulife REIT (USD)||Commercial (USA)||0.895||0.900||6.7||4.0|
|27||Mapletree Commercial Trust||Retail and Commercial (Singapore)||1.55||1.57||5.8||-4.3|
|28||Mapletree GCC Trust||Commercial and Retail (China and Hong Kong)||1.16||1.18||6.4||-4.1|
|29||Mapletree Industrial Trust||Industrial (Singapore)||1.99||1.92||6.1||-2.6|
|30||Mapletree Logistics Trust||Industrial (Singapore, Japan, Hong Kong and others)||1.28||1.18||6.1||-3.1|
|31||OUE Commercial REIT||Commercial (Singapore, China)||0.710||0.710||6.5||1.8|
|32||OUE Hospitality Trust||Hospitality (Singapore)||0.810||0.855||6.1||-0.3|
|33||Parkway Life REIT||Healthcare (Singapore and Japan)||2.84||2.81||4.5||-4.3|
|34||Sabana REIT||Industrial (Singapore)||0.425||0.390||N.A||0.8|
|35||Soilbuild Business Space REIT||Industrial (Singapore)||0.645||0.655||7.8||-1.8|
|36||SPH REIT||Retail (Singapore)||1.03||0.955||5.8||-4.5|
|37||Starhill Global REIT||Retail and Commercial (Singapore, Australia, Malaysia and others)||0.755||0.725||6.7||-4.4|
|38||Suntec REIT||Commercial and Retail (Singapore)||1.97||1.93||5.1||-8.6|
|39||Viva Industrial Trust||Industrial (Singapore)||0.980||0.875||8.4||-5.7|
|Other Property Trusts|
|40||Accordia Golf Trust||Golf Courses (Japan)||0.700||0.640||7.6||-5.8|
|41||Ascendas India Trust||Industrial (India)||1.15||1.01||6.0||-8.3|
|42||Dasin Retail Trust||Retail (China)||0.840||0.845||N.A||-3.4|
|43||Hutchison Port Holdings Trust||Port Assets (Hong Kong and China)||0.570||0.480||7.6||-12.1|
|44||Keppel Infrastructure Trust||Infrastructure (Singapore)||0.575||0.560||6.9||-0.1|
|45||RHT Health Trust||Healthcare (India)||0.845||0.785||6.1||-0.9|
|46||Lion-Phillip S-REIT ETF||ETF||1.021||1.015||1.7||-4.3|
|47||NikkoAM-Straits Trading Asia Ex Japan REIT ETF||ETF||1.124||1.085||4.1||-5.4|
|48||Phillip SGX APAC Dividend Leaders REIT ETF||ETF||1.36||1.295||4.3||-5.4|
+ Based on OCBC Investment Research Indications
*From Bloomberg Markets
Benchmarking Your Returns
The start of 2018 has not been positive for many REITs, and this can be seen in the year-to-date return for the REIT ETFs. If you’re investing in REITs, you can benchmark your returns to that of the REIT ETFs. This provides some measurement of how well you’re doing.
You could also benchmark your returns to the SGX S-REIT 20 Index or the STI to provide a greater understanding on how well your portfolio is performing.