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S-REIT Report Card: Here’s How Singapore REITs Performed In Full Year 2017

In 2017, the SGX S-REIT 20 Index delivered a return of close to 27.1%.


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.

Read Also: Singapore’s Property Market: Is 2018 The Right Time To Start Investing In Private Properties Again?

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.

Read Also: Is Your Investment Portfolio Built To Withstand The Next Financial Crisis?

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
13 ESR-REIT Industrial (Singapore) 0.565 0.575 7.6 1.6
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
REIT ETFs*
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

Read Also: 6 Investments In Singapore That Provide Guaranteed Principal And Returns

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.


 
 

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