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S-REIT Report Card: Here’s How Singapore REITs Performed In Third Quarter 2019

We also look at which REITs have achieved the best 1) Total Return and 2) Distribution Yield, so far.


As one of the most popular investments in Singapore, we keep a close eye on the performance of S-REITs. After the corporate earnings announcements each quarter, we compile a comprehensive summary on our REITs Report Card column.

How Singapore REITs Share Prices Have Fared In 2019, So Far

Before we look at how individual REIT prices have moved, let’s look at the broad S-REIT indices in Singapore. There are two main indices – the iEdge S-REIT Index and the iEdge S-REIT 20 Index.

The iEdge S-REIT Index comprises all the REITs listed in Singapore, while the iEdge S-REIT 20 Index, as its name suggests, only comprise the 20 largest and more tradeable REITs on the iEdge S-REIT Index.

Read Also: Complete Guide To Investing In Singapore REITs

The chart below depicts the iEdge S-REIT Index fluctuations in the last 1-year period. From 24 August 2018 to 22 August 2019, S-REITs have seen share price appreciation of close to 13.8%. This is not even taken any distribution into consideration.

Chart 1: iEdge S-REIT Index

Source: SGX

The chart below depicts the S-REIT 20 Index in the last 1-year period. In the same period (24 August 2018 to 22 August 2019), the S-REIT 20 Index has seen a price appreciation of 15.3%. This means that the 20 largest capitalized and tradeable REITs, which also comprise a large part of the iEdge S-REIT Index, has fared better than smaller and less tradeable REITs.

Chart 2: iEdge S-REIT 20 Index

Source: SGX

Of course, one of the main attractions of REITs investing is the relatively high distributions they pay out regularly. In the section below, we look at the yields of all the REITs listed in Singapore, as well as the distributions they have announced in the quarter.

REITs Total Returns

No. All REITs, Stapled Securities And Other Trusts
(Property Locations)
Price On 19 August 2019 (SGD) Distribution Yield +
(Distribution Announced In Latest Results)
Return In YTD 2019 +
REITs and Stapled Securities
Commercial/Office REITs
1 CapitaLand Commercial Trust
(Singapore)
$2.08 4.3%
($0.044)
23.9%
2 Cromwell European REIT (EUR)
(Denmark, France, Germany, Italy, the Netherlands, Finland and Poland)
€0.47 8.7%
(€0.0205)^
14.9%
3 Frasers Commercial Trust
(Singapore and Australia)
$1.59 6.1%
($0.024)
21.7%
4 IREIT Global
(Germany)
$0.755 N.A.
($0.0293)
12.3%
5 Keppel REIT
(Singapore and Australia)
$1.23 4.6%
($0.0139)
13.5%
6 Keppel-KBS US REIT (USD)
(USA)
US$0.765 7.8%
(US$0.03)
34.9%
7 Manulife REIT (USD)
(USA)
US$0.89 6.7%
($0.009) +++
22.8%
8 OUE Commercial REIT
(Singapore, China)
$0.515 6.6%
($0.0168)
18.6%
9 Prime US REIT US$0.90 N.A.
(N.A.)++++
2.3%++
10 Suntec REIT
(Singapore)
$1.92 5.1%
($0.01565)
12.8%
Retail REITs
11 BHG Retail REIT
(China)
$0.69 N.A.
($0.0208)
-0.2%
12 CapitaLand Mall Trust
(Singapore)
$2.62 4.6%
($0.0292)
19.4%
13 CapitaRetail China Trust
(China)
$1.47 6.9%
($0.06281)
17.4%
14 Fortune REIT (HKD)
(Hong Kong)
HK$9.69 5.4%
(HK$0.2613)
17.0%
15 Frasers Centrepoint Trust
(Singapore, Malaysia)
$2.67 4.6%
($0.01091)
27.5%
16 Lippo Malls Indonesia Trust
(Indonesia)
$0.22 N.A.
($0.006)
31.9%
17 Mapletree Commercial Trust
(Singapore)
$2.06 4.5%
($0.0231)
28.9%
18 Mapletree North Asia Commercial Trust
(China and Hong Kong, Japan)
$1.33 5.9%
($0.0195)
22.9%
19 Sasseur REIT
(China)
$0.80 8.1%
($0.01608)
31.7%
20 SPH REIT
(Singapore)
$1.07 5.3%
($0.0139)
13.4%
21 Starhill Global REIT
(Singapore, Australia, Malaysia and others)
$0.75 6.3%
($0.011)
15.4%
Industrial REITs
22 AIMS APAC REIT
(Singapore and Australia)
$1.44 7.2%
($0.025)
14.4%
23 Ascendas REIT
(Singapore, Australia and UK)
$3.03 5.3%
(N.A.)++++
21.1%
24 Cache Logistics Trust
(Singapore and Australia)
$0.735 8.2%
($0.01321)
12.1%
25 EC World REIT
(China)
$0.745 8.5%
($0.01547)
12.3%
26 ESR-REIT
(Singapore)
$0.505 7.7%
($0.00059) +++
4.5%
27 Frasers Logistics & Industrial Trust
(Australia, Germany, and Netherlands)
$1.18 5.8%
($0.0245)
21.6%
28 Keppel DC REIT
(Singapore, Malaysia, Australia, Germany, Netherlands, Ireland, UK, Italy)
$1.71 4.6%
($0.0385)
36.0%
29 Mapletree Industrial Trust
(Singapore)
$2.26 5.6%
($0.031)
23.1
30 Mapletree Logistics Trust
(Singapore, Japan, Hong Kong and others)
$1.56 5.2%
($0.02025)
28.2%
31 Sabana REIT
(Singapore)
$0.44 N.A.
($0.0075)
22.5%
32 Soilbuild Business Space REIT
(Singapore, Australia)
$0.575 8.7%
($0.01179)
6.5%
Hospitality REITs
33 ARA US Hospitality Trust
(USA)
US$0.865 N.A.
(N.A.)++++
-2.3%++
34 Ascendas Hospitality Trust
(Australia, Japan, Singapore and China)
$1.05 5.5%
(N.A.)++++
39.9%
35 Ascott Residence Trust

(Japan, China, Singapore, USA and others)

$1.27 5.7%

($0.03431)

24.9%
36 CDL Hospitality Trust
(Singapore, Australia, Maldives, New Zealand, Japan, United Kingdom)
$1.59 5.7%
($0.04160)
15.2%
37 Eagle Hospitality Trust
(USA)
US$0.695 7.6%
(N.A.)++++
-12.8%++
38 Far East Hospitality Trust
(Singapore)
$0.645 6.2%
($0.0091)
11.3%
39 Frasers Hospitality Trust
(Singapore, UK, Japan, Australia and Germany)
$0.695 6.5%
(N.A.)++++
3.1%
40 OUE Hospitality Trust
(Singapore)
$0.72 7.1%
($0.0106)
12.1%
Healthcare REITs
41 First REIT
(Indonesia, Singapore, South Korea)
$1.01 8.7%
($0.0215)
10.3%
42 Parkway Life REIT
(Singapore and Japan)
$3.01 4.3%
($0.0327)
19.2%
Other Property Trusts
43 Accordia Golf Trust
(Japan)
$0.52 10.0%
(N.A.)++++
9.1%
44 Ascendas India Trust
(India)
$1.46 5.0%
(N.A.)++++
42.0%
45 Dasin Retail Trust
(China)
$0.875 8.0%
(0.0339)
5.4%
46 Hutchison Port Holdings
(Hong Kong and China)
US$0.182 9.6%
(HK$0.06)
-19.7%
47 Keppel Infrastructure Trust
(Singapore)
$0.505 7.7%
($0.0093)
11.5%
REIT ETFs ++
48 Lion-Phillip S-REIT ETF $1.126 4.3%
($0.0281)
21.1%
49 NikkoAM-Straits Trading Asia Ex Japan REIT ETF $1.273 3.6%
($0.0113)
18.9%
50 Phillip SGX APAC Dividend Leaders REIT ETF $1.093 6.0%
(US$0.0325)
18.2%

Based on OCBC Investment Research Indications

++ From Bloomberg Markets

+++ These companies also paid out advanced distribution for the quarter

++++ These companies did not announce any distributions in the most recent quarter

^ Cromwell European REIT announced a distribution of €0.0204 for the latest quarter, and €0.0001 for an advanced distribution from the next quarter.

 

Best Performing REIT In YTD2019

Best Total Return In YTD2019: In the year to date (YTD), Ascendas India Trust has delivered a total return of 42.0%, making it the best performing REIT so far. With its 5.0% distribution yield, it also pays out a relatively lucrative income to investors.

Ascendas Hospitality Trust is also one of the best performing REITs, with a total return of 39.9% in YTD2019. The main reason for its stellar rise has been the fact that the trust will be merged with Ascott Residence Trust, at a price of $1.0868, on the back of CapitaLand’s acquisition of its parent company, Ascendas-Singbridge.

Other counters that achieved higher than 25% returns include:

  • Keppel-KBS US REIT (34.9%)
  • Frasers Centrepoint Trust (27.5%)
  • Lippo Malls Indonesia Trust (31.9%)
  • Mapletree Commercial Trust (28.9%)
  • Sasseur REIT (31.7%)
  • Keppel DC REIT (36.0%)
  • Mapletree Industrial Trust (23.1%)
  • Mapletree Logistics Trust (28.2%)

Best Distribution Yield: Paying out a distribution of 10.0%, Accordia Golf Trust currently has the highest distribution yield of the REITs and property-related business trusts listed in Singapore. However, we need to be more holistic in assessing “best” as its total return for YTD2019 is 9.1% – which means its share price has likely tapered in the year.

Other counters that are paying a distribution yield of higher than 8% include:

  • Cromwell European REIT (8.7%)
  • Sasseur REIT (8.1%)
  • Cache Logistics Trust (8.2%)
  • EC World REIT (8.5%)
  • Soilbuild Business Space Trust (8.7%)
  • First REIT (8.7%)
  • Dasin Retail Trust (8.0%)
  • Hutchison Port Holdings Trust (9.6%)

Of course, we should always look at a REIT’s property portfolio, and other relevant information, when deciding to invest in them.

1 New REIT Listing, And 1 REIT To Be Delisted

Listed on 19 July 2019, Prime US REIT was the only REIT to be listed this quarter. It follows an emerging theme of two other US-focused REITs to be listed this year – Eagle Hospitality Trust and ARA US Hospitality Trust.

Listed at a share price of US$0.88, its share price has inched up 2.3% to US$0.90 in just over a month. Based on its prospectus, Prime US REIT has projected a distribution yield of 7.6% for 2020 (based on its listing price).

Prime US REIT owns 11 high quality, freehold, office properties in key US office markets, such as California, Utah, Colarado, Texas, Missouri, Georgia, Virginia, and Pennsylvania.

Unfortunately, SGX will also bid farewell to Ascendas Hospitality Trust. While there is one less REIT counter to invest in, the properties on Ascendas Hospitality Trust will continue to remain in the REIT space, to be merged with Ascott Residence Trust, creating Asia Pacific’s largest hospitality trust.

Change In Leverage Limit For REITs

The Monetary Authority of Singapore (MAS) has been studying the feasibility of increasing the amount of debt that Singapore-listed REITs can take on – to 50%, from the current 45% limit.

While no concrete announcements have been unveiled, such a move will allow REITs to take on more leverage, enabling it to grow its property portfolio more aggressively and become more competitive against its global peers (many of which do not face such restrictive leverage limits).

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