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S-REIT Report Card: Here’s How Singapore REITs Performed In FY2018

Following the announcements can tell you which REITs you should invest in – and which REITs you shouldn’t.

The US Federal Reserve has indicated that 2019 will likely see slower interest rate hikes. This comes on the back of mounting macroeconomic uncertainties, that has seen investors turn to less risky investments.

This may benefit REITs in three ways:

# 1 Traditionally, REITs take on a lot of debt to fund its capital-intensive property investments. Slower interest rate hikes in 2019 will ease the growing pressure on REITs, in terms of debt repayment.

# 2 Markets are efficient – which means that prices of REITs would have taken into consideration that rate hikes would continue as normal. This stance of slowing down the interest rate hikes in 2019 is new information for the market, and may give REITs a boost. (Do note that most of this new information should already be priced into the markets today.)

# 3 As investors turn to less risky investments. REITs that are well-managed and have a portfolio of high-quality properties have a better chance of shielding investors from volatility in the markets, while still paying out relatively good distributions.

Read Also: Complete Guide To Investing In Singapore REITs

How REITs Performed In Year-To-Date 2019

Some of you may be confused why we’re talking about the year-to-date 2019 performance when we promised an FY2018 update in the headline. This is because most companies, including the listed REITs, have a financial year (FY) that ends on 31 December 2018. However, they’re only able to release their results for how they did in FY2018 a few months later (around the February to March) period. Therefore, any price reactions to their FY2018 results will only be captured a few months later.

To estimate how REITs have done in the year-to-date 2019, we can look to the two REIT indexes in Singapore. The first table depicts the iEdge S-REIT Index – which measures the performance of all Singapore REITs.

In the year-to-date 2019 (till 25 February 2019), the index rose 7.3%.

Source: SGX

The second table below depicts the price movements of the biggest 20 REITs listed in Singapore during the same timeframe. Just by looking at it, we can tell that the price movements are relatively similar to the first table, which tracks all REITs listed in Singapore.

Read Also: S-REIT Report Card: Here’s How Singapore REITs Performed In Third Quarter 2018

In the year-to-date 2019 (till 25 February 2019), the index rose 7.7%. This shows that the biggest REITs, which also tends to be the ones with better quality properties, bigger portfolio of properties and more established managers performed slightly better than the overall market.

Source: SGX

Here’s how the individual Singapore REITs have done in the year-to-date 2019.

No. All REITs, Stapled Securities And Other Trusts Industry (Country) Price On 25 Feb 2019 (SGD) Dividend Yield + Return In YTD 2019 +
REITs and Stapled Securities
Commercial/Office REITs
1 CapitaLand Commercial Trust Commercial (Singapore) $1.92 4.7% 12.3%
2 Cromwell European REIT (EUR) Commercial (Denmark, France, Germany, Italy, and the Netherlands) €0.505 8.5% 14.8%
3 Frasers Commercial Trust Commercial (Singapore and Australia) $1.49 6.6% 10.6%
4 IREIT Global Commercial (Germany) $0.77 N.A. 6.2%
5 Keppel REIT Commercial (Singapore and Australia) $1.24 4.6% 10.0%
6 Keppel-KBS US REIT (USD) Commercial (USA) US$0.665 8.9% 13.0%
7 Manulife REIT (USD) Commercial (USA) US$0.84 7.3% 13.0%
8 OUE Commercial REIT Commercial (Singapore, China) $0.50 6.8% 11.5%
9 Suntec REIT Commercial and Retail (Singapore) $1.92 5.2% 9.3%
Retail REITs
10 BHG Retail REIT Retail (China) $0.70 N.A. -2.1%
11 CapitaLand Mall Trust Retail (Singapore) $2.44 4.9% 8.7%
12 CapitaRetail China Trust Retail (China) $1.45 7.0% 10.2%
13 Fortune REIT (HKD) Retail and Commercial (Hong Kong) HK$9.89 5.4% 13.9%
14 Frasers Centrepoint Trust Retail (Singapore) $2.30 5.4% 7.4%
15 Lippo Malls Indonesia Trust Retail (Indonesia) $0.23 10.9% 26.4%
16 Mapletree Commercial Trust Retail and Commercial (Singapore) $1.79 5.1% 9.9%
17 Mapletree North Asia Commercial Trust Retail and Commercial (China and Hong Kong) $1.24 6.0% 10.5%
18 Sasseur REIT Retail (China) $0.77 8.3% 18.5%
19 SPH REIT Retail (Singapore) $1.03 5.5% 4.4%
20 Starhill Global REIT Retail and Commercial (Singapore, Australia, Malaysia and others) $0.70 6.7% 4.6%
Industrial REITs
21 AIMS AMP Capital Industrial Reit Industrial (Singapore and Australia) $1.38 7.5% 5.7%
22 Ascendas Reit Industrial (Singapore, Australia and China) $2.80 5.8% 8.9%
23 Cache Logistics Trust Industrial (Singapore and Australia) $0.72 8.1% 5.8%
24 EC World REIT Logistics (China) $0.755 8.5% 9.4%
25 ESR-REIT Industrial (Singapore) $0.535 8.2% 6.6%
26 Frasers Logistics & Industrial Trust Logistics and Industrial (Australia) $1.10 6.4% 6.8%
27 Keppel DC REIT Data Centres (Diversified) $1.47 5.4% 11.7%
28 Mapletree Industrial Trust Industrial (Singapore) $2.00 6.0% 7.2%
29 Mapletree Logistics Trust Logistics and Industrial (Singapore, Japan, Hong Kong and others) $1.40 5.6% 12.8%
30 Sabana REIT Industrial (Singapore) $0.425 N.A. 10.8%
31 Soilbuild Business Space REIT Industrial (Singapore) $0.595 8.6% 5.1%
Hospitality REITs
32 Ascendas Hospitality Trust Hospitality (Australia, Japan, Singapore and China) $0.85 6.8% 10.4%
33 Ascott Residence Trust Hospitality (Japan, China, Singapore and others) $1.15 6.2% 10.1%
34 CDL Hospitality Trust Hospitality (Singapore, Australia, Maldives, New Zealand, Japan, United Kingdom) $1.60 6.0% 12.9%
35 Far East Hospitality Trust Hospitality and Commercial (Singapore) $0.64 6.6% 7.4%
36 Frasers Hospitality Trust Hospitality (Singapore, UK, Japan, Australia and Germany) $0.73 6.6% 4.3%
37 OUE Hospitality Trust Hospitality (Singapore) $0.72 7.1% 9.4%
Healthcare REITs
38 First REIT Healthcare (Indonesia) $1.06 8.3% 9.9%
39 Parkway Life REIT Healthcare (Singapore and Japan) $2.84 4.6% 9.3%
Other Property Trusts
40 Accordia Golf Trust Golf Courses (Japan) $0.60 6.6% 18.8%
41 Ascendas India Trust Industrial (India) $1.16 6.0% 7.4%
42 Dasin Retail Trust Retail (China) $0.88 8.8% 1.7%
43 Hutchison Port Holdings Trust Port Assets (Hong Kong and China) US$0.235 8.1% 0.2%
44 Keppel Infrastructure Trust Infrastructure (Singapore) $0.505 7.7% 6.0%
45 RHT Health Trust Healthcare (India) $0.014 N.A. 54.2%
46 Lion-Phillip S-REIT ETF ETF $1.04 4.1% 9.2%
47 NikkoAM-Straits Trading Asia Ex Japan REIT ETF1 ETF $1.19 4.6% 9.4%
48 Phillip SGX APAC Dividend Leaders REIT ETF ETF $1.42 3.7% 9.7%

+ Based on OCBC Investment Research Indications

++ From Bloomberg Markets

Will There Be Another REIT Listing Soon?

It is also interesting to note that the last REIT to list on the SGX – Sasseur REIT – did so almost a year ago on 26 March 2018. No other REIT has listed on SGX since then.

While this could be a sign of some weakness in the REIT market, it may have been a case of new REIT IPOs were waiting for a better time following the increased market volatility in 2018 and the beginning of 2019.

Read Also: Applying For REITs Rights Issue: Here What You Need To Know

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