|09 July 2018|
|REITs & Stapled Trusts Average 6.7% Distribution Yield|
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.
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.
|My Gateway & SGX StockFacts|
SGX’s investor education portal with market, product and investment information and events. Sign up now at sgx.com/mygateway to receive our investment updates and economic calendar.
Whether you are seeking new or established companies to invest in, SGX StockFacts can provide you with the information you need to identify and understand the stocks that best fit your investment strategy. Visit now at sgx.com/stockfacts.
This document is not intended for distribution to, or for use by or to be acted on by any person or entity located in any jurisdiction where such distribution, use or action would be contrary to applicable laws or regulations or would subject Singapore Exchange Limited (“SGX”) to any registration or licensing requirement. This document is not an offer or solicitation to buy or sell, nor financial advice or recommendation for any investment product. This document is for general circulation only. It does not address the specific investment objectives, financial situation or particular needs of any person. Advice should be sought from a financial adviser regarding the suitability of any investment product before investing or adopting any investment strategies. Use of and/or reliance on this document is entirely at the reader’s own risk. Further information on this investment product may be obtained from www.sgx.com. Investment products are subject to significant investment risks, including the possible loss of the principal amount invested. Past performance of investment products is not indicative of their future performance. Examples provided are for illustrative purposes only. While each of SGX and its affiliates (collectively, the “SGX Group Companies”) have taken reasonable care to ensure the accuracy and completeness of the information provided, each of the SGX Group Companies disclaims any and all guarantees, representations and warranties, expressed or implied, in relation to this document and shall not be responsible or liable (whether under contract, tort (including negligence) or otherwise) for any loss or damage of any kind (whether direct, indirect or consequential losses or other economic loss of any kind, including without limitation loss of profit, loss of reputation and loss of opportunity) suffered or incurred by any person due to any omission, error, inaccuracy, incompleteness, or otherwise, any reliance on such information, or arising from and/or in connection with this document. The information in this document may have been obtained via third party sources and which have not been independently verified by any SGX Group Company. No SGX Group Company endorses or shall be liable for the content of information provided by third parties. The SGX Group Companies may deal in investment products in the usual course of their business, and may be on the opposite side of any trades. SGX is an exempt financial adviser under the Financial Advisers Act (Cap. 110) of Singapore. The information in this document is subject to change without notice. This document shall not be reproduced, republished, uploaded, linked, posted, transmitted, adapted, copied, translated, modified, edited or otherwise displayed or distributed in any manner without SGX’s prior written consent.
Nikkei owns the copyright and any other intellectual property rights in the Nikkei Stock Average itself, and the method for calculating the Nikkei Stock Average and the like. All ownership of trademarks and any other intellectual property rights with respect to marks representing "Nikkei Inc.," "Nikkei," and "Nikkei Stock Average" belongs to Nikkei. Nikkei is not obliged to continuously publish the Nikkei Stock Average, nor is it liable for any error or delay in, or discontinuation of the publication thereof. Nikkei owns the right to change the content of the Nikkei Stock Average, such as the calculation method thereof, and the right to suspend the publication thereof. Nikkei does not give any warranty, nor is it responsible for any and all financial instruments and the like, which are based on, or otherwise refer to, the Nikkei Stock Average.
All rights in the FTSE China A50 Index (the “Index”) vest in FTSE International Limited (“FTSE”). “FTSE®” is a trademark of the London Stock Exchange Group companies and is used by FTSE under license.
The SGX FTSE China A50 Index Futures (the "Product") has been developed solely by Singapore Exchange Derivatives Trading Limited. The Index is calculated by FTSE or its agent. FTSE and its licensors are not connected to and do not sponsor, advise, recommend, endorse or promote the Product and do not accept any liability whatsoever to any person arising out of (a) the use of, reliance on or any error in the Index or (b) investment in or operation of the Product. FTSE makes no claim, prediction, warranty or representation either as to the results to be obtained from the Product or the suitability of the Index for the purpose to which it is being put by Singapore Exchange Derivatives Trading Limited.
Futures or options contract on any MSCI Index are not sponsored, guaranteed, endorsed, sold or promoted by MSCI, any affiliate of MSCI or any other party involved in, or related to, making or compiling any indexes (but expressly including the exchange) MSCI bears no liability of any kind with respect to such contracts