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SGX Market Updates

Author: SGX   |   Latest post: Mon, 15 Aug 2022, 5:06 PM

 

Five Stapled Hospitality Trusts Book 18% Avg. YTD Total Return

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  • The iEdge S-REIT Index has seen a comparatively defensive 1.4% total return in the 2022 YTD, while the FTSE EPRA NAREIT Global REITs Index declined 15.8%. This has been a turnaround from comparative performances in 2H21, which saw a 1.6% total return for the iEdge S-REIT Index, while the global benchmark gained 12.5%.
  • The strongest performing S-REIT segment in the 2022 YTD was Hospitality, represented by five stapled trusts that averaged 18.2% total returns with S$16 million of net institutional inflow. This coincided with outlook upgrades to RevPAR (revenue per available room) for the Singapore focused plays, as re-opening momentum etched higher.
  • With a 43.5% YTD total return, Frasers Hospitality Trust has also been the best performing APAC-listed REIT in the 2022 YTD. This morning, a wholly-owned subsidiary of Frasers Property has proposed to privatise Frasers Hospitality Trust through a trust scheme of arrangement at a consideration of 70 cents per unit.
  • Far East Hospitality Trust, Ascott Residence Trust and CDL Hospitality Trusts, in addition to Diversified REIT, Suntec REIT, have also ranked among APAC’s 20 strongest performing REITs in the 2022 YTD. Singapore’s largest S-REIT by market value, CapitaLand Integrated Comm Trust has been the next best performing S-REIT with a 9% total return.

 

20 Years of Significant Growth for the S-REIT Sector

July 17 will mark 20 years since its Singapore’s initial REIT, CapitaLand Integrated Commercial Trust, formerly known as CapitaLand Mall Trust and CapitaMall Trust, listed on SGX. The IPO raised more than S$200 million, with an initial offer price at S$0.96 per unit and the offer five times subscribed. At the time of listing, the then Retail-focused REIT owned three shopping malls –Tampines Mall, Junction 8 and Funan The IT Mall with a portfolio value of S$900 million. Today, CapitaLand Integrated Comm Trust remains Singapore’s largest REIT by market value, and amongst the largest in Asia Pacific, with a portfolio value in excess of S$20 billion, maintaining 10.8% average annualised total returns since its debut. 

The S-REIT Sector has grown significantly over the past 20 years, providing investors with exposures to a wide span of property classes that have seen diverse returns in recent years. While data centre and industrial REITs outpaced in 2020 into 2021 on demand for cloud services and resilient manufacturing activity, Singapore’s hospitality stapled trusts have been the strongest segment of the S-REIT Sector in the 2022 year to 10 June, with re-opening momentum supporting brighter for outlooks RevPAR (revenue per available room), for the four stapled trusts with Singapore properties.

As tabled below, unlike recent years, data centres and industrial REITs have been the least performing segments of the S-REIT sector, while the Hospitality segment comprised of five stapled trusts has been the strongest performing segment.

REIT Property Type

Market Cap (S$M)

YTD Net Insti Inflows (S$M)

No. of Relevant Trusts

Avg. YTD Total Return %

Avg.  Div. Yield (%)

Avg.  Debt/ Asset (%)

Avg.  P/B (x)

Diversified

43,543

93.1

10

-2.7

6.2

37.0

0.9

Industrial

31,443

-331.3

8

-5.9

6.6

37.6

1.0

Retail

10,350

-61.7

8

-3.8

8.0

35.0

0.7

Office

9,126

13.6

6

-2.7

8.0

38.8

0.9

Hospitality

8,279

16.5

5

18.2

2.8

39.5

0.9

Data Centre*

5,028

-115.6

2

-16.7

4.8

31.1

1.3

Health Care

3,573

-16.0

2

-2.0

5.9

35.1

1.5

Total/Average

111,342

-401.5

41

-1.6

6.4

36.9

0.94

*note Mapletree Industrial Trust included as Industrial. Mkt Cap, Div. Yield, Debt/Asset Ratio and P/B based on 31 May data, net institutional flow and total return data based on 10 June data. Sources: SGX, Refinitiv, Bloomberg.

With a 43.5% total return in 2022 through to 10 June, Frasers Hospitality Trust has also been the best performing APAC-listed REIT for the past 23 weeks. This morning, a wholly-owned subsidiary of Frasers Property has proposed to privatise Frasers Hospitality Trust through a trust scheme of arrangement at a consideration of 70 cents per unit.

Hospitality Stapled Trusts

Code

Market Cap (S$M)

YTD Net Insti Inflows (S$M)

YTD Total Return %

Div. Yield (%)

Debt/ Asset (%)

P/B (x)

Ascott Residence Trust^#

HMN

3,813

41

15.5

3.7

37.8

1.0

CDL Hospitality Trusts^#

J85

1,543

0

12.2

3.4

39.8

1.0

Far East Hospitality Trust^#

Q5T

1,289

-4

17.4

4.1

33.4

0.8

Frasers Hospitality Trust^#

ACV

1,252

-23

43.5

2.3

42.3

1.0

ARA US Hospitality Trust^#

XZL

381

2

2.6

0.7

44.3

0.7

Total/Average

 

8,279

16

18.2

2.8

39.5

0.90

Note:^# Stapled Trusts. Mkt Cap, Div. Yield, Debt/Asset Ratio and P/B based on 31 May data, net institutional flow and total return data based on 10 June data. Sources: SGX, Refinitiv, Bloomberg.

S-REITs Featured Amongst APAC’s Strongest Performing REITs YTD

Far East Hospitality Trust, Ascott Residence Trust and CDL Hospitality Trusts, in addition to Diversified REIT, Suntec REIT, have also ranked among Asia Pacific’s 20 strongest performing REITs in the 2022 year to 10 June. The aforementioned CapitaLand Integrated Commercial Trust was the next best performing S-REIT with a 9.0% total return, excluding Mapletree North Asia Commercial Trust, which had its last day of trading on 8 June.

With the aforementioned CapitaLand Integrated Commercial Trust constituting an 11% heavyweight in of the iEdge S-REIT Index, its 9.0% total return has had a significant impact on the iEdge S-REIT Index’s comparatively defensive 1.4% total return in the 2022 year to 10 June. Meanwhile the FTSE EPRA NAREIT Global REITs Index, (of which Singapore accounts for a 3% weight), has declined 15.8% over the past 23 weeks. This has been a turnaround from comparative performances in the second half, which saw a 1.6% total return for the iEdge S-REIT Index, while the FTSE EPRA NAREIT Global REITs Index gained 12.5%.

The turnaround in comparative performances has coincided with the different timetables in global re-openings. As REIT Watch noted in May, tenant sales for Retail S-REITs were back at pre-Covid levels in 1Q22, while most of the hospitality trusts with Singapore assets reported higher RevPAR in 1Q22, due to growth in average daily rates and occupancy. In addition, the hawkish outlook for interest rates across much of the world (with the exception of China and Japan) has put the lens on gearing ratios, which as tabled below are on average at 36.9%, some 13.1% below the regulatory threshold, while on average, close to 75% of S-REIT current debts are entered directly in fixed rates or hedged through floating-to-fixed interest rate swaps.

REITs & Property Trusts

Code

Type of Property
Sub-segment

Market Cap (S$M)

YTD Net Insti Inflows S$M

YTD Total Return %

Div. Yield (%)

Debt/ Asset (%)

P/B (x)

CapitaLand Integrated Commercial Trust

C38U

Diversified

14,519

138

9.0

4.8

39.1

1.1

Ascendas REIT

A17U

Industrial

11,712

-102

-1.5

5.5

36.8

1.2

Mapletree Logistics Trust

M44U

Industrial

7,844

-74

-10.5

5.4

36.8

1.2

Mapletree Industrial Trust

ME8U

Industrial

6,639

-114

-5.2

5.6

38.4

1.3

Mapletree Commercial Trust

N2IU

Diversified

5,924

-158

-6.5

5.4

33.5

1.1

Frasers Logistics & Commercial Trust

BUOU

Diversified

5,020

-34

-10.0

5.7

33.1

1.1

Suntec REIT

T82U

Diversified

4,822

42

13.7

5.4

43.3

0.9

Mapletree North Asia Commercial Trust***

RW0U

Diversified

4,283

186

11.2

5.6

41.5

0.9

Keppel REIT

K71U

Office

4,280

44

5.3

5.1

38.7

0.9

Frasers Centrepoint Trust

J69U

Retail

3,982

-9

1.7

5.2

33.3

1.1

Ascott Residence Trust^#

HMN

Hospitality

3,813

41

15.5

3.7

37.8

1.0

Keppel DC REIT

AJBU

Data Centre

3,539

-99

-16.9

4.8

36.1

1.5

ParkwayLife REIT

C2PU

Health Care

2,989

-12

-3.4

2.9

34.5

2.0

ESR-Logos REIT

J91U

Industrial

2,736

-24

-11.3

7.1

40.8

1.0

SPH REIT

SK6U

Retail

2,651

-6

-2.8

5.9

30.1

0.9

OUE Commercial REIT

TS0U

Diversified

2,154

-11

-7.3

6.5

39.4

0.7

CapitaLand China Trust

AU8U

Diversified

1,939

-32

1.5

7.5

38.1

0.8

Lendlease Global Commercial REIT

JYEU

Diversified

1,867

-3

-2.1

5.8

27.7

0.8

Cromwell European REIT

CWBU

Diversified

1,694

-8

-20.9

8.3

38.6

0.9

CDL Hospitality Trusts^#

J85

Hospitality

1,543

0

12.2

3.4

39.8

1.0

Digital Core REIT

DCRU

Data Centre

1,490

-16

-16.6

4.8

26.0

1.1

Manulife US REIT

BTOU

Office

1,450

-7

-4.3

8.9

42.8

0.9

Ascendas India Trust^

CY6U

Diversified

1,321

-28

-15.9

6.8

36.0

1.1

Starhill Global REIT

P40U

Retail

1,310

-10

-7.3

6.5

36.1

0.7

Far East Hospitality Trust^#

Q5T

Hospitality

1,289

-4

17.4

4.1

33.4

0.8

Frasers Hospitality Trust^#

ACV

Hospitality

1,252

-23

43.5

2.3

42.3

1.0

Prime US REIT

OXMU

Office

1,151

-8

-7.5

9.5

39.1

0.9

Sasseur REIT

CRPU

Retail

1,008

-24

0.9

8.6

26.2

0.8

Keppel Pacific Oak Us REIT

CMOU

Office

994

-10

-4.2

9.1

37.5

0.9

AIMS APAC REIT

O5RU

Industrial

989

-12

-0.9

6.9

37.5

0.7

IREIT Global

UD1U

Office

717

-2

-1.2

7.0

32.1

0.8

First REIT

AW9U

Health Care

585

-4

-0.6

9.0

35.7

0.9

Elite Commercial REIT

MXNU

Office

534

-4

-4.3

8.5

42.8

1.1

Daiwa House Logistics Trust

DHLU

Industrial

516

-12

-3.8

6.3

38.2

1.0

EC World REIT

BWCU

Industrial

514

-4

-19.1

9.6

37.3

0.7

Sabana Industrial REIT

M1GU

Industrial

492

9

4.8

6.6

34.8

0.9

United Hampshire Us REIT

ODBU

Retail

472

-9

-3.6

9.9

38.9

0.8

Lippo Malls Indonesia Retail Trust

D5IU

Retail

416

-2

3.4

7.2

42.9

0.4

ARA US Hospitality Trust^#

XZL

Hospitality

381

2

2.6

0.7

44.3

0.7

BHG Retail REIT

BMGU

Retail

269

0

-12.2

4.1

35.0

0.6

Dasin Retail Trust^

CEDU

Retail

242

-2

-10.3

16.8

37.8

0.2

Total

 

 

111,342

-401

 

 

 

 

Average

 

 

 

 

-1.6

6.4

36.9

0.94

Note:^# Stapled Trusts, ^ Business Trusts. Mkt Cap, Div. Yield, Debt/Asset Ratio and P/B based on 31 May data, net institutional flow and total return data based on 10 June data. Sources: SGX, Refinitiv, Bloomberg. ***Note Mapletree North Asia Commercial Trust last day of trading was 8 June 2022.

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Related Stocks

Chart Stock Name Last Change Volume 
CapitaMall Trust 2.12 +0.01 (0.47%) 9,597,600 
Mapletree Ind Tr 2.70 +0.01 (0.37%) 3,188,800 
Frasers HTrust 0.70 -0.005 (0.71%) 830,500 
Ascott Trust 1.15 0.00 (0.00%) 1,916,400 
CDL HTrust 1.28 -0.02 (1.54%) 2,122,300 
Far East HTrust 0.635 0.00 (0.00%) 854,300 
ARA HTrust USD 0.475 0.00 (0.00%) 47,000 
Suntec Reit 1.61 +0.01 (0.63%) 4,053,285 

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