The SGX Real Estate Index is an index made up of 50 Singapore-listed real estate entities.
There are some huge stocks in that list. In fact, according to a recent report, 32 of the index’s 50 constituents have a market cap that exceeds S$1 billion as of 26 August 2016.
From that list of 32, I picked out the five best-performers. Here’s what I learnt about them from the report and other sources (data as of 26 August 2016, unless otherwise stated):
- Sitting at the top of the heap is Yoma Strategic Holdings Ltd (SGX: Z59). The Myanmar-focused firm has delivered a whopping 1,111.5% in total return over the last five years. Yoma Strategic Holdings has a market cap of S$1.06 billion and has businesses beyond real estate development. On the flipside, my fellow Fool Chong Ser Jing thinks that investors should keep an eye on the company’s interest expenses.
- Mapletree Commercial Trust (SGX: N2IU) clinches the second spot in the performance rankings. The real estate investment trust (REIT) is the owner of the popular VivoCity shopping mall. Mapletree Commercial Trust has a total of five properties in its portfolio and weighs in with a S$4.5 billion market cap. It has produced a total return of 153.5% over the last five years.
- Another REIT, First Real Estate Investment Trust (SGX: AW9U), is next with a total return of 146.1% over the same period. The Indonesia-focused REIT has a market cap of a little over S$1 billion. First REIT got caught in a bit of turbulence last year when rumours surfaced that its parent company, the Lippo Group, might want to delist the REIT from Singapore.
- Frasers Commercial Trust (SGX: ND8U) weighs in at fourth place in the returns ranking. The REIT, which has a market cap of around S$1.1 billion, is focused on commercial properties. It has generated total returns of nearly 135% over the last five years.
- Rounding up the top-five list is Mapletree Industrial Trust (SGX: ME8U). The industrial REIT registered a total return of 115.7% over the last five years. Mapletree Industrial Trust has a market cap of S$3.2 billion.
- For context, the SGX Real Estate Index has produced a total return of over 82% in the last five years. So, the five real estate entities I mentioned above have all beaten the industry average. The index has a weighted average price-to-book ratio of 0.9.
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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Chin Hui Leong doesn’t own shares in any companies mentioned.