09 July 2018
REITs & Stapled Trusts Average 6.7% Distribution Yield
  • Following strong growth of Singapore private property prices at 9.1% over the past 12M & subsequent further tightening of private property cooling measures, the 34 REITs & six Stapled Trusts maintain an average distribution yield of 6.7%.
  • The five trusts that maintain the highest indicative yields are Lippo Malls Indonesia Retail Trust, Viva Industrial Trust*, Cache Logistics Trust, Soilbuild Business Space REIT and EC World REIT. These four REITs and one Stapled Trust* maintain an average yield of 8.8%.
  • Institutional Investors have been net buyers of REITs over the past three weeks. Last week, Ascendas REIT, CapitaLand Mall Trust, CapitaLand Commercial Trust and Fraser Logistics & Industrial Trust ranked amongst the 10 stocks with the highest institutional inflows.

Real Estate Investment Trusts (REITs) and Stapled Trusts invest in a diversified pool of professionally managed real estate assets and raise capital to purchase primarily real estate assets, usually with a view to generate income for unit holders of the fund.

 

As REITAS President and CapitaLand Group CFO Andrew Lim noted in May, the S-REIT landscape in Singapore continues to evolve rapidly, and now has a broad base of different platforms, ranging from sponsor driven, to new and exciting asset classes such as data centres and outlet malls as well as platforms investing solely in overseas markets. 

 

Institutional Investors have been net buyers of REITs and Stapled Trusts (+S$26.1 million) over the past three weeks according to SGX data. Last week Ascendas REIT, CapitaLand Mall Trust, CapitaLand Commercial Trust and Fraser Logistics & Industrial Trust ranked amongst the 10 stocks with the highest institutional inflows. Over the five sessions ending 6 July, institutions were net buyers of the REITs and Stapled Trusts with S$16.3 million of net inflow. This was the largest net institutional inflow to a Sector recorded over the past two weeks. Click here for more.

 

The 34 REITs and six Stapled Trusts currently average an indicative distribution yield of 6.7%. In the 2018 year through to 6 July, the 34 REITs and six Stapled Trusts have averaged a 3.5% decline in total return, bringing the average 12 month total return to 2.6%. The five trusts that maintain the highest indicative yields are Lippo Malls Indonesia Retail Trust, Stapled Trust Viva Industrial Trust, Cache Logistics Trust, Soilbuild Business Space REIT and EC World REIT.

 

The table below includes the 34 REITs and six Stapled Trusts. To see more detail on each trust in SGX StockFacts, click on the trust name. 

REITS & Stapled Trusts

Trust Structure

SGX Code

Market Cap S$M

YTD Total Return %

12M Total Return %

Indicative Dividend Yield %

Ascendas REIT

REIT

A17U

7,824

1.1

9.8

6.0

CapitaLand Mall Trust

REIT

C38U

7,381

0.3

12.0

5.4

CapitaLand Commercial Trust

REIT

C61U

6,363

-8.1

10.3

5.1

Suntec REIT

REIT

T82U

4,662

-16.6

-0.7

5.7

Mapletree Commercial Trust

REIT

N2IU

4,588

0.9

6.4

5.7

Mapletree Logistics Trust

REIT

M44U

4,054

-1.2

12.5

6.1

Keppel REIT

REIT

K71U

3,749

-10.7

-0.2

5.2

Mapletree Industrial Trust

REIT

ME8U

3,715

-0.7

12.7

6.0

Mapletree North Asia Commercial Trust

REIT

RW0U

3,618

-2.9

13.0

6.5

Fortune REIT**

REIT

F25U

3,049

-0.1

0.0

5.4

SPH REIT

REIT

SK6U

2,557

-2.7

5.1

5.6

Ascott Residence Trust

REIT

A68U

2,332

-8.8

-1.8

6.6

Frasers Logistics & Industrial

REIT

BUOU

2,147

-3.2

8.5

6.2

Frasers Centrepoint Trust

REIT

J69U

2,047

1.4

9.6

5.5

CDL Hospitality Trusts

Stapled

J85

1,878

-5.0

1.3

5.9

Keppel DC REIT

REIT

AJBU

1,838

-0.6

14.1

5.2

Parkway Life Real Estate

REIT

C2PU

1,652

-6.6

9.2

4.9

Cromwell European REIT**

REIT

CNNU

1,506

7.3

N/A

N/A

Manulife US REIT**

REIT

BTOU

1,474

-0.3

5.6

6.8

CapitaLand Retail China Trust

REIT

AU8U

1,445

-7.5

-4.8

6.8

Starhill Global REIT

REIT

P40U

1,429

-12.8

-11.8

7.1

OUE Hospitality Trust

Stapled

SK7

1,409

-6.1

9.3

6.6

Frasers Hospitality Trust

Stapled

ACV

1,271

-10.5

-0.6

7.3

Frasers Commercial Trust

REIT

ND8U

1,210

-5.0

3.1

7.0

Far East Hospitality Trust

Stapled

Q5T

1,157

-11.5

-1.3

6.3

OUE Commercial REIT

REIT

TS0U

1,060

-1.8

-0.6

6.8

First REIT

REIT

AW9U

1,028

-2.8

4.8

6.6

AIMS AMP Capital Industrial

REIT

O5RU

936

3.2

-0.8

7.5

Lippo Malls Indonesia Retail Trust

REIT

D5IU

898

-17.9

-24.9

10.2

Ascendas Hospitality Trust

Stapled

Q1P

883

-5.7

2.0

7.5

Viva Industrial Trust

Stapled

T8B

847

-3.2

5.3

8.6

Cache Logistics Trust

REIT

K2LU

809

-8.4

-10.5

8.5

ESR-REIT

REIT

J91U

808

-5.8

-9.1

7.3

Sasseur REIT

REIT

CRPU

785

N/A

N/A

N/A

Keppel-KBS US REIT

REIT

CMOU

745

-2.3

N/A

N/A

Soilbuild Business Space REIT**

REIT

SV3U

691

1.7

-2.8

8.5

EC World REIT

REIT

BWCU

564

-2.1

-4.0

8.3

IREIT Global

REIT

UD1U

478

1.7

7.6

7.8

Sabana Shariah Comp Ind REIT

REIT

M1GU

458

14.7

3.1

7.6

BHG Retail REIT

REIT

BMGU

366

2.1

6.5

7.5

Average

 

 

 

 3.5

2.6

6.7

Source: Bloomberg & SGX StockFacts (data as of 6 July 2018). **Note Cromwell European REIT is traded in EUR, Fortune REIT is traded in HKD, Manulife US REIT and Keppel-KBS US REIT are traded in USD. All returns are denominated in SGD.

 

Like stocks, REITs and Stapled Trusts have market risk – that is unit prices can move against the investor’s expectations. Other risks associated with a REIT or Stapled Trust investment can vary and depend on the unique characteristics of each Trust (i.e. leverage ratio, cost of refinancing, alignment of management fees), as well as the geographical location and quality of the underlying property investments (i.e. concentration of properties, length of lease). Other risks associated with stock investing (i.e. price risk, volatility and liquidity risks) also apply.


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