Investors can gain exposure to local and international real estate assets through Real Estate Investment Trusts (REITs) and stapled securities listed on Singapore Exchange (SGX). These trusts include different types of real estate ranging from shopping malls, office towers, industrial parks, hospitality-related assets and healthcare-related assets.
Investing in REITs allows investors to share the income generated by the tenants of the properties, at the same time bearing the risks associated with the value of the property assets and the costs of financing the property. Hence REITs provide an efficient way to include real estate in one’s investment portfolio.
The 26 REITs and six stapled securities listed on SGX are detailed in the table below. For the 26 REITs, the distributed tenant income through dividends boosted the average total return from 8.7% to 12.6% in the year-to-date. Similarly, the average total return of the six stapled securities was boost to 8.3% on dividend distributions. The total return takes into account the changes in the price of the units in addition to re-invested dividend distributions.
|REIT||SGX Code||Market Cap S$M||Px Chg YTD %||Total Return YTD %||Total Return 12M %||Dvd Ind Yld %||GICS Sub-Industry Name|
|CAPITAMALL TRUST||C38U||6921||4.7||7.6||2.6||5.4||Retail REITs|
|ASCENDAS REAL ESTATE INV TRT||A17U||5601||6.8||10.3||4.9||6.0||Industrial REITs|
|CAPITACOMMERCIAL TRUST||C61U||5063||15.2||21.5||20.7||5.1||Office REITs|
|SUNTEC REIT||T82U||4600||19.5||23.0||20.2||6.3*||Diversified REITs|
|KEPPEL REIT||K71U||3627||8.4||12.1||2.6||5.9||Office REITs|
|MAPLETREE LOGISTICS TRUST||M44U||2924||12.8||16.8||12.9||6.4||Industrial REITs|
|MAPLETREE COMMERCIAL TRUST||N2IU||2898||16.8||20.5||19.5||5.6||Retail REITs|
|SPH REIT||SK6U||2661||8.2||13.2||12.6||5.1||Retail REITs|
|MAPLETREE INDUSTRIAL TRUST||ME8U||2473||8.2||12.3||11.7||6.9||Industrial REITs|
|MAPLETREE GREATER CHINA COMM||RW0U||2442||7.7||11.7||2.3||6.8||Diversified REITs|
|FORTUNE REIT||F25U||2152||13.9||17.5||2.3||5.0||Retail REITs|
|ASCOTT RESIDENCE TRUST||A68U||1941||5.4||8.6||2.7||6.2||Residential REITs|
|FRASERS CENTREPOINT TRUST||J69U||1812||10.8||15.7||6.8||1.3||Retail REITs|
|STARHILL GLOBAL REIT||P40U||1798||6.4||9.7||1.9||5.9||Retail REITs|
|PARKWAYLIFE REAL ESTATE||C2PU||1452||2.6||5.0||2.6||4.7||Health Care REITs|
|CAPITARETAIL CHINA TRUST||AU8U||1294||21.4||25.5||13.1||6.2||Retail REITs|
|LIPPO MALLS INDONESIA RETAIL||D5IU||996||-2.4||0.7||-13.2||6.6||Retail REITs|
|CACHE LOGISTICS TRUST||K2LU||958||10.8||15.0||7.2||7.0||Industrial REITs|
|FRASERS COMMERCIAL TRUST||ND8U||957||12.6||16.3||13.8||6.1||Office REITs|
|CAMBRIDGE INDUSTRIAL TRUST||J91U||942||8.7||12.5||8.7||6.7||Industrial REITs|
|AIMS AMP CAPITAL INDUSTRIAL||O5RU||910||7.1||11.2||0.0||6.8||Industrial REITs|
|FIRST REAL ESTATE INVT TRUST||AW9U||889||16.0||22.3||10.3||6.5||Health Care REITs|
|SABANA SHARIAH COMP IND REIT||M1GU||713||-5.1||0.4||-6.9||7.3||Industrial REITs|
|OUE COMMERCIAL REIT||TS0U||707||2.5||2.5||2.5||N.A.||Office REITs|
|SOILBUILD BUSINESS SPACE REI||SV3U||655||5.2||9.4||9.1||7.7||Diversified REITs|
|SAIZEN REIT||T8JU||267||2.2||5.9||7.9||6.8||Residential REITs|
Source: Bloomberg (data as of 24 July 2014) * note 12 month distribution yield
|Stapled Trust||SGX Code||Market Cap S$M||Px Chg YTD %||Total Return YTD %||Total Return 12M %||Dvd Ind Yld %||GICS Sub-Industry Name|
|CDL HOSPITALITY TRUSTS||J85||1740||8.8||12.7||12.7||6.2||Hotel & Resort REITs|
|FAR EAST HOSPITALITY TRUST||Q5T||1547||4.8||8.2||-3.3||5.9||Hotel & Resort REITs|
|OUE HOSPITALITY TRUST||SK7||1178||2.3||7.7||7.1||7.5||Hotel & Resort REITs|
|FRASERS HOSPITALITY TRUST||ACV||1073||1.7||1.7||1.7||N.A.||N.A.|
|ASCENDAS HOSPITALITY TRUST||Q1P||849||6.2||10.7||-5.2||7.5||Hotel & Resort REITs|
|VIVA INDUSTRIAL TRUST||T8B||486||5.2||9.0||8.3||8.5||Office REITs|
Source: Bloomberg (data as of 24 July 2014)
Stapled securities consist of different securities that are stapled jointly and traded as one security. An example is CDL Hospitality Trusts, comprising of a REIT (CDL Hospitality REIT) and a business trust (CDL Hospitality Business Trust). The trust component of the stapled entity is managed by a responsible entity who performs the roles as a ‘’trustee” as well as a “manager”. The most recent stapled trust listed on SGX is Frasers Hospitality Trust, which was listed on 14 July 2014.
According to Bloomberg, there are approximately 700 primary lists of REITs around the world. In a recent working paper by Asia Pacific Real Estate Association (APREA) titled ‘The Impact of REITs on Asian Economies’, real estate was maintained to have investment characteristics that are distinct from other major asset classes, being equities and bonds, and so offer diversification benefits to a multi-asset class portfolio. The survey further maintained that Australia, Singapore, Japan and Hong Kong have the region’s most conducive regimes for investments.
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