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Author: SGX   |   Latest post: Mon, 19 Jul 2021, 9:50 AM

 

S-REIT Sector Lodged 9% Return Over 9 Weeks

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  • Since 14 May, the iEdge S-REIT Index has generated an 8.7% total return, outpacing the STI, which gained 3.2% over the nine weeks. Globally, REITs were among the strongest segments of the stock market over the past nine weeks, along with technology and manufacturing stocks.
     
  • A key driver for the resurgence in global REITs over the nine weeks was UST 10-yr yields declining from 1.65% to 1.29%, increasing the yield premium of the FTSE EPRA Nareit Developed Index (3.2%) to the UST 10-yr yields from 155 bps to 191 bps. Increased global inflation concerns have also coincided with the REIT Gains.
     
  • The 10 trusts that led the S-REIT Sector over the nine weeks represent multiple sub-sectors, were recipient to S$68M of combined net institutional and net proprietary inflow, and averaged 17% gains over the nine weeks. The trio of REIT ETFs listed on SGX recorded inflows of S$35M over the nine weeks.
     
  • ARA Logos Logistics Trust was among the top three performers of the S-REITs over the nine weeks with S$14 million of net institutional and net proprietary inflow. The REIT also led the Sector in the 2021 YTD with a 54% total return. The REIT will report its 1HFY21 (ended 30 June) results before the Thurs 22 July open.
     

With a combined market value of S$115 billion, the REITs & Property Trusts of Singapore’s S-REIT Sector are well diversified across property sub-segments. The REITs and Property Trusts averaged a trailing 12 month dividend yield of 5.5%, and were trading at an average 3% premium to book value at the end of June. For a detailed overview of the S-REIT metrics and June highlights, click here for the most recent Chartbook. 

Back on 14 May, the Straits Times Index (“STI”) traded its biggest daily range, in terms of percentage points, since 11 June 2020 with the announcement of the Phase Two (Heightened Alert). That week, the STI ended down 4.5%, with global market swings also seeing the 10-year UST yields trade at a high of 1.70% on 13 May, its highest level from 7 April, through to 16 July. On 16 July, the 10-year UST yields ended at 1.29%. This has increased the yield premium of the FTSE EPRA Nareit Developed Index to the UST 10-yr yields from 155 bps on 14 May to 191 bps to 16 July. During the nine weeks, REITs were among the strongest segments of the stock market over the past nine weeks, along with technology and manufacturing stocks. While the yield premium of REITs to Bonds has increased, global inflation concerns have also edged higher, with REITs traditionally touted to provide some portfolio protection against inflation (click here for more).  

From 14 May to 16 July, the iEdge S-REIT Index generated an 8.7% total return, outpacing the STI, which gained 3.2% over the nine weeks. The three REIT focused ETFs – the Nikko AM Straits Trading Asia ex Japan REIT ETF, Lion-Phillip S-REIT ETF and the Phillip APAC DIV REIT Leader ETF also recorded combined inflows of S$35 million over the nine weeks.  The 10 trusts of the S-REIT Sector that generated the highest returns over the nine weeks represent multiple sub-sectors are tabled below.
 

10 Strongest Performing REITs & Property Trusts Over the Past 9 Weeks.

Code

Mkt Cap S$M

Total Return 14 May - 16 July %

Net Insti & Net Prop Flow 14 May - 16 July S$M

Total Return YTD %

Dividend Yield at 30 June %

Property Focus

ARA H Trust USD*

XZL

446

22

-2.6

35

N.A.

Hospitality

Lendlease REIT

JYEU

1033

21

10.8

23

6.4

Diversified

ARA LOGOS Log Tr

K2LU

1296

19

14.4

54

6.7

Industrial

AIMS APAC REIT

O5RU

1118

18

9.7

31

6.1

Industrial

Starhill Global REIT

P40U

1351

17

8.2

25

4.6

Retail

SPHREIT

SK6U

2643

17

7.7

16

4.0

Retail

ESR-REIT

J91U

1706

16

10.0

17

7.1

Industrial

ParkwayLife REIT

C2PU

2904

15

2.4

26

3.1

Health Care

Keppel Pac Oak REIT USD

CMOU

1041

14

-2.8

26

7.9

Office

OUE Com REIT

TS0U

2309

13

10.0

14

5.9

Diversified

Source: SGX, Refinitiv, Bloomberg (Data as of 16 July 2021), Note * Stapled Trust ** Business Trust.
 

The nine REITs and one stapled trust tabled above were recipient to S$68 million of combined net institutional and net proprietary inflow, and averaged 17% gains over the nine weeks boosting their average 2021 year to 16 July total return to 27%.

ARA Logos Logistics Trust was among the top three performers of the S-REITs over the nine weeks with S$14 million of net institutional and net proprietary inflow. The REIT also led the S-REIT Sector and all Asia Pacific listed REITs with a market value of at least US$500 million in the 2021 year to 16 July with a 54% total return. ARA Logos Logistics Trust will report its 1HFY21 (ended 30 June) results before the Thursday 22 July open.

The entire S-REIT offering (including the relevant stapled and business trusts investing in properties) are tabled below. While ARA Logos Logistics Trust was the strongest performer of the REITs that span Asia Pacific with a market value of at least US$500 million in the 2021 year to 16 July, AIMS APAC REIT, Parkway Life REIT, Keppel Pacific Oak REIT (USD) and Starhill Global REIT also ranked among the top 30 performers over the period. 

10 Strongest Performing REITs & Property Trusts Over the Past 9 Weeks.

Code

Mkt Cap S$M

Total Return 14 May - 16 July %

Net Insti & Net Prop Flow 14 May - 16 July S$M

Total Return YTD %

Dividend Yield at 30 June %

Property Focus

ARA H Trust USD*

XZL

446

22

-2.6

35

N/A

Hospitality

Lendlease REIT

JYEU

1033

21

10.8

23

6.4

Diversified

ARA LOGOS Log Tr

K2LU

1296

19

14.4

54

6.7

Industrial

AIMS APAC REIT

O5RU

1118

18

9.7

31

6.1

Industrial

Starhill Global REIT

P40U

1351

17

8.2

25

4.6

Retail

SPHREIT

SK6U

2643

17

7.7

16

4.0

Retail

ESR-REIT

J91U

1706

16

10.0

17

7.1

Industrial

ParkwayLife REIT

C2PU

2904

15

2.4

26

3.1

Health Care

Keppel Pac Oak REIT USD

CMOU

1041

14

-2.8

26

7.9

Office

OUE Com REIT

TS0U

2309

13

10.0

14

5.9

Diversified

EC World REIT

BWCU

658

13

0.8

18

7.0

Industrial

Manulife REIT USD

BTOU

1749

13

6.5

16

7.1

Office

Mapletree Log Tr

M44U

9093

12

23.8

7

4.1

Industrial

Frasers L&C Tr

BUOU

5613

11

6.3

13

5.2

Diversified

BHG Retail REIT

BMGU

302

10

0.0

9

3.6

Retail

Mapletree Ind Tr

ME8U

7686

10

-13.8

3

4.4

Industrial

United Hampshire REIT USD

ODBU

504

10

-1.1

21

6.6

Retail

Ascendas-iTrust**

CY6U

1694

9

-2.7

9

6.4

Diversified

First REIT

AW9U

426

9

1.9

30

10.9

Health Care

Sasseur REIT

CRPU

1176

9

2.0

23

7.3

Retail

Mapletree Com Tr

N2IU

7138

9

-0.1

3

4.4

Diversified

CapLand Int Com T

C38U

13923

8

3.3

0

4.2

Diversified

Cromwell REIT EUR

CWBU

2268

8

0.6

10

6.8

Diversified

Frasers Cpt Tr

J69U

4196

8

0.6

3

4.3

Retail

IREIT Global

UD1U

629

8

-2.1

9

7.9

Office

Prime US REITUSD

OXMU

1355

8

-8.1

21

8.0

Office

Sabana REIT

M1GU

458

7

-0.3

30

6.4

Industrial

Ascendas REIT

A17U

12748

7

-51.7

5

5.0

Industrial

Suntec REIT

T82U

4320

6

-17.2

5

5.3

Diversified

Frasers H Trust*

ACV

1021

6

0.3

1

2.4

Hospitality

Ascott Residence Trust*

HMN

3242

6

-5.4

-2

3.0

Hospitality

CapLand China T

AU8U

2071

5

-5.8

-1

4.6

Diversified

CDL H Trust*

J85

1522

5

-4.7

0

4.0

Hospitality

Far East H Trust*

Q5T

1172

3

-5.7

-2

4.2

Hospitality

Mapletree NAC Tr

RW0U

3594

2

-17.3

9

5.9

Diversified

Keppel REIT

K71U

4375

2

-4.0

10

4.9

Office

Keppel DC REIT

AJBU

4280

2

-48.6

-5

3.8

Specialised

Elite Com REIT GBP

MXNU

593

1

-2.3

11

4.0

Office

Lippo Malls Tr

D5IU

483

0

-0.2

3

5.0

Retail

Dasin Retail Tr**

CEDU

395

-30

-3.2

-34

6.7

Retail

Average

 

 

9

 

12

5.5

 

Total

 

 

 

-80.3

 

 

 

Source: SGX, Refinitiv, Bloomberg (Data as of 16 July 2021). Note * Stapled Trust ** Business Trust.

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