SGX Market Updates

Author: SGX   |   Latest post: Thu, 2 Feb 2023, 9:02 AM


REIT Watch - Industrial S-Reits Report Positive Rental Reversions

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REIT Watch

Prices and rentals of Singapore industrial spaces continued to rise in the first quarter of 2022, despite a dip in the overall occupancy rate, according to the quarterly market report published by JTC.

In Q1 2022, the overall occupancy rate fell to 89.8 per cent, a drop of 0.4 percentage points compared to the previous quarter, due to new completions picking up significantly, and increase in supply exceeding new demand.

Despite the drop in occupancy, price and rental indices of all industrial space rose by 2.1 per cent and 1.0 per cent respectively compared to the previous quarter.

SGX lists 8 industrial S-Reits, of which 6 have exposure to Singapore-based industrial assets.

These 6 trusts are AIMS Apac Reit, Ascendas Reit, ESR-Logos Reit, Mapletree Industrial Trust, Mapletree Logistics Trust and Sabana Industrial Reit. Assets of Daiwa House Logistics Trust and EC World Reit are based in Japan and China respectively.

AIMS Apac Reit reported higher FY22 gross revenue and net property income (NPI) of S$142.4 million and S$103.2 million, rising 16.1 per cent and 17.9 per cent year on year respectively.

The improved performance was mainly attributed to contributions from recently acquired assets as well as higher rental and recoveries for several Singapore assets.

Ascendas Reit’s March 2022 occupancy rate of 90.0 per cent for its Singapore portfolio was 0.2 per cent lower compared to a quarter ago, but 3.1 per cent higher than a year ago.

The Reit recorded an average portfolio rent reversion of 3.9 per cent for Singapore leases renewed in Q1 2022 and expects rental reversion across its overall portfolio for FY22 to be in the positive low single-digit range in view of current market uncertainties.

ESR-Logos Reit (E-LOG) started trading on May 5, following the successful merger of ESR-Reit and ARA Logos Logistics Trust.

The Reit’s asset portfolio is valued at S$5.5 billion across Singapore and Australia and it intends to actively leverage on the initial sponsor pipeline of approximately US$2 billion of visible and executable pipeline across key gateway markets in the Asia-Pacific.

Mapletree Industrial Trust (MIT) announced FY21/22 distribution per unit (DPU) of 13.8 cents, an increase of 10.0 per cent year on year.

MIT reported higher average overall portfolio occupancy for Q4 FY21/22 compared to the previous quarter, mainly due to improved occupancy of the Singapore portfolio especially among business park buildings and flatted factories.

Mapletree Logistics Trust’s (MLT) FY21/22 amount distributable to unitholders grew 17.3 per cent year on year to S$390.7 million, while DPU rose 5.5 per cent to 8.787 cents.

MLT observed that the leasing market in Singapore remains stable with demand boosted by e-commerce growth and business inventory stockpiling.

Sabana Industrial Reit, in its Q1 2022 business update, reported healthy occupancy of 85.2 per cent and positive rental reversion of 4.0 per cent.

The Reit noted that this is the 8th quarter in the past 9 quarters where positive reversion was achieved.

REIT Watch is a weekly column on The Business Times, read the original version.

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Related Stocks

Chart Stock Name Last Change Volume 
AIMS APAC Reit 1.36 0.00 (0.00%) 786,000 
CapLand Ascendas REIT 2.99 +0.05 (1.70%) 13,891,500 
ESR-LOGOS REIT 0.385 0.00 (0.00%) 3,757,000 
Mapletree Ind Tr 2.39 +0.01 (0.42%) 2,198,100 
Mapletree Log Tr 1.75 +0.03 (1.74%) 15,046,000 
Sabana Reit 0.44 0.00 (0.00%) 628,300 
Daiwa Hse Log Tr 0.63 0.00 (0.00%) 149,200 
EC World Reit 0.47 -0.005 (1.05%) 636,000 

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