Apart from just manoeuvring an economic downturn in 2020, everyone is also combating a very real health threat. The combination of this has also led to major disruptions in the way we live, work and play, accelerating economic trends that should have been years in the making.
Along with this, the properties – including REITs – that enable us to live, work and play have all been impacted. In the short term, volatility may spark sharp rises and dips in market prices, in the longer-term, some types of properties may become less relevant entirely.
In our REITs Report Card, which we publish each quarter, we look at how S-REITs have performed as a whole and individually.
How Have Singapore REITs Fared In The YTD 2020?
The iEdge S-REIT Index is a free-float market capitalisation weighted index measuring the performance of REITs listed in Singapore. As we can see in the chart below, the market movement of REITs has echoed general investor sentiment.
S-REITs had actually risen during the early months of 2020, gaining as much as 5.4% as at late February. It then tumbled nearly 38% on the back of COVID-19 cases spiralling out of control globally and governments took definitive action locking down entire cities.
Along with the safe distancing measures, most classes of REITs, including office, retail, industrial, hospitality, and others we affected. Healthcare REITs perhaps remained one of the few unaffected industries or even beneficiaries. However, Indonesia-based First REIT tells a story of caution even for REITs in supposedly beneficiary industries.
In the following months, even though REITs regained part of its losses, they are still down 8.8% since the start of the year.
Read Also: [2020 Edition] Complete Guide To Start Your REITs Investing Journey In Singapore
Chart: iEdge S-REIT Index
Source: SGX
However, the 8.8% decline for S-REITs still outperforms a dip of over 20% for the Straits Times Index (STI) in 2020. Globally, the S&P Global REIT (USD) index, comprising 411 REITs in various sectors across 24 major countries, has also been worse off, registering a dip of over 19% since the turn of the year.
Announced Previously: Measures To Help REITs
In our last 2Q REIT Report Card detailed some the measures that the Singapore government implemented earlier in the year to help REITs better manage their cashflow throughout the year. In essence, they consist of 1) an extension to the period they have to distribute their income, and 2) allowing for higher leverage limits and deferral of interest coverage requirements.
Read Also: Investing In Property VS REITs: Which Is Better?
How Individual S-REITs Have Performed In 3rd Quarter 2020
| No. | All REITs, Stapled Securities And Other Trusts, And ETFs (Property Locations) |
Price (SGD) + | Distribution Yield ++ | Return In YTD 2020 ++ |
| REITs and Stapled Securities | ||||
| Commercial/Office REITs | ||||
| 1 | CapitaLand Commercial Trust (Singapore, Malaysia) (SGX: C61U) |
$1.63 | 5.2% | -15.9% |
| 2 | Cromwell European REIT (EUR) (Denmark, France, Germany, Italy, the Netherlands, Finland, Poland) (SGX: CNNU) |
€0.465 | 9.2% | -17.3% |
| 3 | Elite Commercial REIT (UK) (SGX: MXNU) |
£0.67 | 7.1% | N.A. |
| 4 | IREIT Global (Germany, Spain) (SGX: UD1U) |
$0.74 | 7.6% | -5.8% |
| 5 | Keppel REIT (Singapore, Australia and South Korea) (SGX: K71U) |
$1.10 | 2.5% | -7.9% |
| 6 | Keppel Pacific Oak US REIT (USD) (USA) (SGX: CMOU) |
US$0.705 | 8.2% | -1.0% |
| 7 | Manulife US REIT (USD) (USA) (SGX: BTOU) |
US$0.755 | 9.7% | -21.9% |
| 8 | OUE Commercial REIT (Singapore and China) (SGX: TS0U) |
$0.375 | 5.8% | -29.5% |
| 9 | Prime US REIT (USA) (SGX: OXMU) |
US$0.790 | 5.2% | -16.5% |
| 10 | Suntec REIT (Singapore, Australia) (SGX: T82U) |
$1.37 | 7.2% | -24.4% |
| Retail REITs | ||||
| 11 | BHG Retail REIT (China) (SGX: BMGU) |
$0.590 | 6.9% | -15.7% |
| 12 | CapitaLand Mall Trust (Singapore and China) (SGX: C38U) |
$1.89 | 4.8% | -21.0% |
| 13 | CapitaLand Retail China Trust (China) (SGX: AU8U) |
$1.18 | 6.3% | -21.8% |
| 14 | Frasers Centrepoint Trust (Singapore and Malaysia) (SGX: J69U) |
$2.35 | 3.6% | -13.8% |
| 15 | Lendlease Global Commercial REIT (Singapore, Italy) (SGX: JYEU) |
$0.63 | 5.8% | -31.8% |
| 16 | Lippo Malls Indonesia Trust (Indonesia) (SGX: D5IU) |
$0.120 | 11.2% | -46.3% |
| 17 | Mapletree Commercial Trust (Singapore) (SGX: N2IU) |
$1.92 | 3.1% | -22.0% |
| 18 | Mapletree North Asia Commercial Trust (Hong Kong, China, Japan) (SGX: RW0U) |
$0.90 | 8.7% | -24.2% |
| 19 | Sasseur REIT (China) (SGX: CRPU) |
$0.78 | 8.0% | -9.0% |
| 20 | SPH REIT (Singapore, Australia) (SGX: SK6U) |
$0.86 | 4.4% | -22.1% |
| 21 | Starhill Global REIT (Singapore, Australia, Malaysia, Japan, China) (SGX: P40U) |
$0.445 | 7.3% | -34.8% |
| 22 | United Hampshire US REIT (USA) (SGX: ODBU) |
US$0.58 | 7.4% | N.A |
| Industrial REITs | ||||
| 23 | AIMS APAC REIT (Singapore, Australia) (SGX: O5RU) |
$1.18 | 7.5% | -13.2% |
| 24 | Ascendas REIT (Singapore, Australia, USA, UK) (SGX: A17U) |
$3.41 | 4.2% | -23.0% |
| 25 | ARA Logos Logistics Trust (Singapore, Australia) (SGX: K2LU) |
$0.65 | 7.5% | -4.1% |
| 26 | EC World REIT (China) (BWCU) |
$0.66 | 9.1% | -9.1% |
| 27 | ESR-REIT (Singapore) (SGX: J91U) |
$0.39 | 8.0% | -23.0% |
| 28 | Frasers Logistics & Commercial Trust (Australia, Singapore, Germany, Netherlands, UK) (SGX: BUOU) |
$1.38 | 5.2% | -13.1% |
| 29 | Keppel DC REIT (Singapore, Malaysia, Australia, Germany, Netherlands, Ireland, UK, Italy, Malaysia) (SGX: AJBU) |
$2.89 | 2.5% | 46.7% |
| 30 | Mapletree Industrial Trust (Singapore, USA) (SGX: ME8U) |
$3.14 | 3.7% | -29.6% |
| 31 | Mapletree Logistics Trust (Singapore, Malaysia, China, Japan, Hong Kong, Australia, South Korea and Vietnam) (SGX: M44U) |
$2.10 | 3.8% | 26.0% |
| 32 | Sabana REIT (Singapore) (SGX: M1GU) |
$0.37 | 6.9% | -15.0% |
| 33 | Soilbuild Business Space REIT (Singapore and Australia) (SGX: SV3U) |
$0.405 | 8.9% | -17.4% |
| Hospitality REITs | ||||
| 34 | ARA US Hospitality Trust (USA) (SGX: XZL) |
US$0.34 | 11.2% | -54.6% |
| 35 | Ascott Residence Trust (Singapore, Malaysia, Australia, Japan, China, the USA, Vietnam, Indonesia, the Philippines, Germany, France, Spain and Belgium) (SGX: HMN) |
$0.89 | 5.8% | -32.7% |
| 36 | CDL Hospitality Trust (Singapore, Australia, Maldives, New Zealand, Japan, UK, Germany, Italy) (SGX: J85) |
$1.05 | 6.6% | -38.2% |
| 37 | Eagle Hospitality Trust (USA) (SGX: LIW) |
0.137 (suspended) | N.A. | -75.1% |
| 38 | Far East Hospitality Trust (Singapore) (SGX: Q5T) |
$0.52 | 5.9% | -32.8% |
| 39 | Frasers Hospitality Trust (Singapore, UK, Japan, Australia and Germany) (SGX: ACV) |
$0.435 | 8.9% | -32.8% |
| Healthcare REITs | ||||
| 40 | First REIT (Indonesia, Singapore, South Korea) (SGX: AW9U) |
$0.595 | 11.9% | -41.7% |
| 41 | Parkway Life REIT (Singapore, Malaysia, Japan) (SGX: C2PU) |
$3.54 | 3.7% | 9.3% |
| Other Property Trusts | ||||
| 42 | Accordia Golf Trust (Japan) (SGX: ADQU) |
$0.735 | 5.9%+++ | 12.2%++++ |
| 43 | Ascendas India Trust (India) (SGX: CY6U) |
$1.33 | 6.2% | -9.4% |
| 44 | Dasin Retail Trust (China) (SGX: CEDU) |
$0.795 | 8.7% | -1.8% |
| 45 | Hutchison Port Holdings (Hong Kong, China) (SGX: NS8U) |
US$0.101 | 12.1%+++ | -32.0%++++ |
| 46 | Keppel Infrastructure Trust (Singapore, Australia, New Zealand) (SGX: A7RU) |
$0.54 | 6.9%+++ | 5.2%++++ |
| REIT ETFs | ||||
| 47 | Lion-Phillip S-REIT ETF (Singapore) (SGX: CLR) |
$1.058 | 4.67% | -5.0%+++ |
| 48 | NikkoAM-Straits Trading Asia Ex Japan REIT ETF (Singapore, Hong Kong, Malaysia, Thailand) (SGX: CFA) |
$1.11 | 5.09% | -7.9%+++ |
| 49 | Phillip SGX APAC Dividend Leaders REIT ETF (Australia, Singapore, Hong Kong, Thailand (SGX: BYJ) |
$1.20 | 3.36% | -17.0%+++ |
Footnotes For Clarity
+ Based on SGX chart (as of 17 Aug 2020)
++ SGX Research Report: SREITs & Property Trust (August 2020)
+++ From SGX / Bloomberg (17 August)
++++ Estimated from company information
Read Also: Investing in REIT ETFs Listed In Singapore: 5 Things You Need To Know
5 Best Performing Singapore REITs In YTD 2020
#1 Keppel DC REIT (46.7%)
#2 Mapletree Industrial Trust (29.6%)
#3 Mapletree Logistics Trust (26.0%)
#4 Ascendas REIT (23.0%)
#5 Frasers Logistics & Commercial Trust (13.1%)
Keppel DC REIT is the best performing REIT in the YTD 2020. Unsurprisingly, its assets are concentrated in the data centre space – which has been a key beneficiary of COVID-19 on the back of greater focus on e-commerce and digitalisation. Similarly, Mapletree Industrial Trust has data centre assets and has also announced that it will enlarge its data centre portfolio with an acquisition.
The three other REITs rounding the top five performing REITs in Singapore are within the logistics space, another beneficiary of the rise of e-commerce.
5 Highest Yielding REITs In YTD 2020
#1 Hutchison Port Holdings (12.1%)
#2 First REIT (11.9%)
#3 Lippo Malls Indonesia Trust (11.2%)
#4 ARA Hospitality Trust (11.2%)
#5 Manulife US REIT (9.7%)
When we look at the highest yielding REITs, we should be aware that high yield typically translates to high risk. This is highlighted by the three best performing REITs – First REIT and Lippo Malls Indonesia Trust – which also delivered a YTD return of -41.7% and -46.3% respectively.
ARA US Hospitality Trust is in the uncertain hospitality industry, which is still mired with uncertainties. In fact, another US-focused hospitality REIT – Eagle Hospitality Trust – would have been listed as the worst performing REIT if not for the suspension in trading its shares, which is down 75.1% in the YTD.
In general, it looks like the top yield REITs are also some of the worst performing REITs. This means the top five names may be artificially placed – are investors expected their distributions to be impacted in the coming months, hence it looks like it is offering good yields.
5 Worst Performing Singapore REITs in YTD 2020
#1 Eagle Hospitality trust (-75.1%)
#2 ARA Hospitality Trust (-54.6%)
#3 Lippo Malls Indonesia Trust (-46.3%)
#4 First REIT (41.7%)
#5 Frasers Hospitality Trust (-39.0%)
Suspended Eagle Hospitality Trust is the worst performing REIT in Singapore, with a negative 75.1% return in YTD 2020. Besides the impact of the coronavirus on tourism in the US, the REIT is also entangled with corporate governance issues.
In fact, three of the top five worst performing REIT are in the hospitality sector, with ARA Hospitality Trust and Frasers Hospitality Trust turning in a return of negative 54.6% and negative 39.0% respectively.
The two other REITs rounding off the top five worst performing REITs in Singapore are Lippo Malls Indonesia Trust and First REIT – also the two highest yielding REITs in Singapore.
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