5 Quick Things Investors Need to Know About Singapore’s REITs (and More!)

Singapore is the largest real estate investment trust (REIT) market in Asia (excluding Japan).

Our local bourse operator Singapore Exchange Limited (SGX: S68) is touted to be one of the largest global REIT platforms of cross border assets in the world. Yesterday, Singapore Exchange released a nifty infographic which shares interesting information on the universe of REITs, stapled trusts, and property trusts in Singapore’s stock market.

I had picked out five quick things investors should know from the inforgraphic:

  1. There are 42 REITs, stapled trusts, and property trusts listed in Singapore. Of the 42, there are 32 REITs with a total market cap of US$50 billion. There are also six stapled trusts with a total market cap of US$5 billion, and four property trusts with a total market cap of US$2 billion.
  2. CapitaLand Mall Trust (SGX: C38U) would be an example of a REIT. For stapled trusts, CDL Hospitality Trust (SGX: J85) would be an example. Stapled trusts often have a REIT component and a business trust component (read more about it here).
  3. For another perspective, 11 trusts are Singapore-focused while 13 trusts have assets overseas. The remaining 18 trusts have both Singapore and overseas assets.
  4. Ascott Residence Trust (SGX: A68U) is an example of a trust with both Singapore and overseas assets. In an earlier report prepared by Singapore Exchange, Ascott Residence Trust was considered as the most internationalized REIT with a presence in 14 countries. Mapletree Industrial Trust (SGX: ME8U) would be an example of a REIT with assets in Singapore alone.
  5. A good number of REITs have real estate companies as sponsors. There are 54 real estate companies with a total market cap of US$68 billion in Singapore. For instance, real estate developer CapitaLand Limited  (SGX: C31) is the sponsor for CapitaLand Mall Trust.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. The Motley Fool Singapore has recommended shares of Singapore Exchange. Motley Fool Singapore contributor Chin Hui Leong doesn’t own shares in any companies mentioned.