Three causes there gained't be considered a 2021 housing industry crash
S-REIT Report Card: Here's How Singapore REITs Performed In Third Quarter 2021
Apart from just manoeuvring an economic downturn in 2021, everyone is also combating a very real health threat. The combination of this has also led to major disruptions in the way we live, work and play, accelerating economic trends that should have been years in the making.
Along with this particular, the properties – including REITs – that enable us to live, work and play have been impacted. In the short term, volatility may spark sharp rises and dips in market prices, within the longer-term, some types of properties may become less relevant entirely.
In our REITs Report Card, which we publish each quarter, we glance at how S-REITs have performed in general and individually.
How Have Singapore REITs Fared Within the YTD 2021?
The iEdge S-REIT Index is a free-float market capitalisation weighted index measuring the performance of REITs listed in Singapore. As we can see in the chart below, the market movement of REITs has echoed general investor sentiment.
S-REITs had actually risen during the early months of 2021, gaining as much as 5.4% as at late February. After that it tumbled nearly 38% on the back of COVID-19 cases spiralling unmanageable globally and governments took definitive action locking down entire cities.
Along using the safe distancing measures, most classes of REITs, including office, retail, industrial, hospitality, yet others we affected. Healthcare REITs perhaps remained mostly of the unaffected industries or even beneficiaries. However, Indonesia-based First REIT tells a story of caution even for REITs in supposedly beneficiary industries.
In the next months, even though REITs regained part of its losses, they are still down 8.8% because the start of the year.
Chart: iEdge S-REIT Index
However, the 8.8% decline for S-REITs still outperforms a dip of over 20% for the Straits Times Index (STI) in 2021. Globally, the S&P Global REIT (USD) index, comprising 411 REITs in a variety of sectors across 24 major countries, has additionally been worse off, registering a dip well over 19% since the turn of the year.
Announced Previously: Measures To assist REITs
In our last 2Q REIT Report Card detailed some the measures the Singapore government implemented earlier around to help REITs better manage their cashflow throughout the year. In essence, they consist of 1) an extension to the period they have to distribute their income, and 2) allowing for higher leverage limits and deferral of interest coverage requirements.
How Individual S-REITs Have Performed In 3rd Quarter 2021
| No. | All REITs, Stapled Securities And Other Trusts, And ETFs (Property Locations) |
Price (SGD) + | Distribution Yield ++ | Return In YTD 2021 ++ |
| REITs and Stapled Securities | ||||
| Commercial/Office REITs | ||||
| 1 | CapitaLand Commercial Trust (Singapore, Malaysia) (SGX: C61U) |
$1.63 | 5.2% | -15.9% |
| 2 | Cromwell European REIT (EUR) (Denmark, France, Germany, Italy, the Netherlands, Finland, Poland) (SGX: CNNU) |
EUR0.465 | 9.2% | -17.3% |
| 3 | Elite Commercial REIT (UK) (SGX: MXNU) |
lb0.67 | 7.1% | N.A. |
| 4 | IREIT Global (Germany, Spain) (SGX: UD1U) |
$0.74 | 7.6% | -5.8% |
| 5 | Keppel REIT (Singapore, Australia and Columbia) (SGX: K71U) |
$1.10 | 2.5% | -7.9% |
| 6 | Keppel Pacific Oak US REIT (USD) (USA) (SGX: CMOU) |
US$0.705 | 8.2% | -1.0% |
| 7 | Manulife US REIT (USD) (USA) (SGX: BTOU) |
US$0.755 | 9.7% | -21.9% |
| 8 | OUE Commercial REIT (Singapore and China) (SGX: TS0U) |
$0.375 | 5.8% | -29.5% |
| 9 | Prime US REIT (USA) (SGX: OXMU) |
US$0.790 | 5.2% | -16.5% |
| 10 | Suntec REIT (Singapore, Australia) (SGX: T82U) |
$1.37 | 7.2% | -24.4% |
| Retail REITs | ||||
| 11 | BHG Retail REIT (China) (SGX: BMGU) |
$0.590 | 6.9% | -15.7% |
| 12 | CapitaLand Mall Trust (Singapore and China) (SGX: C38U) |
$1.89 | 4.8% | -21.0% |
| 13 | CapitaLand Retail China Trust (China) (SGX: AU8U) |
$1.18 | 6.3% | -21.8% |
| 14 | Frasers Centrepoint Trust (Singapore and Malaysia) (SGX: J69U) |
$2.35 | 3.6% | -13.8% |
| 15 | Lendlease Global Commercial REIT (Singapore, Italy) (SGX: JYEU) |
$0.63 | 5.8% | -31.8% |
| 16 | Lippo Malls Indonesia Trust (Indonesia) (SGX: D5IU) |
$0.120 | 11.2% | -46.3% |
| 17 | Mapletree Commercial Trust (Singapore) (SGX: N2IU) |
$1.92 | 3.1% | -22.0% |
| 18 | Mapletree North Asia Commercial Trust (Hong Kong, China, Japan) (SGX: RW0U) |
$0.90 | 8.7% | -24.2% |
| 19 | Sasseur REIT (China) (SGX: CRPU) |
$0.78 | 8.0% | -9.0% |
| 20 | SPH REIT (Singapore, Australia) (SGX: SK6U) |
$0.86 | 4.4% | -22.1% |
| 21 | Starhill Global REIT (Singapore, Australia, Malaysia, Japan, China) (SGX: P40U) |
$0.445 | 7.3% | -34.8% |
| 22 | United Hampshire US REIT (USA) (SGX: ODBU) |
US$0.58 | 7.4% | N.A |
| Industrial REITs | ||||
| 23 | AIMS APAC REIT (Singapore, Australia) (SGX: O5RU) |
$1.18 | 7.5% | -13.2% |
| 24 | Ascendas REIT (Singapore, Australia, USA, UK) (SGX: A17U) |
$3.41 | 4.2% | -23.0% |
| 25 | ARA Logos Logistics Trust (Singapore, Australia) (SGX: K2LU) |
$0.65 | 7.5% | -4.1% |
| 26 | EC World REIT (China) (BWCU) |
$0.66 | 9.1% | -9.1% |
| 27 | ESR-REIT (Singapore) (SGX: J91U) |
$0.39 | 8.0% | -23.0% |
| 28 | Frasers Logistics & Commercial Trust (Australia, Singapore, Germany, Netherlands, UK) (SGX: BUOU) |
$1.38 | 5.2% | -13.1% |
| 29 | Keppel DC REIT (Singapore, Malaysia, Australia, Germany, Netherlands, Ireland, UK, Italy, Malaysia) (SGX: AJBU) |
$2.89 | 2.5% | 46.7% |
| 30 | Mapletree Industrial Trust (Singapore, USA) (SGX: ME8U) |
$3.14 | 3.7% | -29.6% |
| 31 | Mapletree Logistics Trust (Singapore, Malaysia, China, Japan, Hong Kong, Australia, Columbia and Vietnam) (SGX: M44U) |
$2.10 | 3.8% | 26.0% |
| 32 | Sabana REIT (Singapore) (SGX: M1GU) |
$0.37 | 6.9% | -15.0% |
| 33 | Soilbuild Business Space REIT (Singapore and Australia) (SGX: SV3U) |
$0.405 | 8.9% | -17.4% |
| Hospitality REITs | ||||
| 34 | ARA US Hospitality Trust (USA) (SGX: XZL) |
US$0.34 | 11.2% | -54.6% |
| 35 | Ascott Residence Trust (Singapore, Malaysia, Australia, Japan, China, the united states, Vietnam, Indonesia, the Philippines, Germany, France, Spain and Belgium) (SGX: HMN) |
$0.89 | 5.8% | -32.7% |
| 36 | CDL Hospitality Trust (Singapore, Australia, Maldives, New Zealand, Japan, UK, Germany, Italy) (SGX: J85) |
$1.05 | 6.6% | -38.2% |
| 37 | Eagle Hospitality Trust (USA) (SGX: LIW) |
0.137 (suspended) | N.A. | -75.1% |
| 38 | Far East Hospitality Trust (Singapore) (SGX: Q5T) |
$0.52 | 5.9% | -32.8% |
| 39 | Frasers Hospitality Trust (Singapore, UK, Japan, Australia and Germany) (SGX: ACV) |
$0.435 | 8.9% | -32.8% |
| Healthcare REITs | ||||
| 40 | First REIT (Indonesia, Singapore, South Korea) (SGX: AW9U) |
$0.595 | 11.9% | -41.7% |
| 41 | Parkway Life REIT (Singapore, Malaysia, Japan) (SGX: C2PU) |
$3.54 | 3.7% | 9.3% |
| Other Property Trusts | ||||
| 42 | Accordia Golf Trust (Japan) (SGX: ADQU) |
$0.735 | 5.9%+++ | 12.2%++++ |
| 43 | Ascendas India Trust (India) (SGX: CY6U) |
$1.33 | 6.2% | -9.4% |
| 44 | Dasin Retail Trust (China) (SGX: CEDU) |
$0.795 | 8.7% | -1.8% |
| 45 | Hutchison Port Holdings (Hong Kong, China) (SGX: NS8U) |
US$0.101 | 12.1%+++ | -32.0%++++ |
| 46 | Keppel Infrastructure Trust (Singapore, Australia, New Zealand) (SGX: A7RU) |
$0.54 | 6.9%+++ | 5.2%++++ |
| REIT ETFs | ||||
| 47 | Lion-Phillip S-REIT ETF (Singapore) (SGX: CLR) |
$1.058 | 4.67% | -5.0%+++ |
| 48 | NikkoAM-Straits Trading Asia Ex Japan REIT ETF (Singapore, Hong Kong, Malaysia, Thailand) (SGX: CFA) |
$1.11 | 5.09% | -7.9%+++ |
| 49 | Phillip SGX APAC Dividend Leaders REIT ETF (Australia, Singapore, Hong Kong, Thailand (SGX: BYJ) |
$1.20 | 3.36% | -17.0%+++ |
Footnotes For Clarity
+ According to SGX chart (as of 17 Aug 2021)
++ SGX Research Report: SREITs & Property Trust (August 2021)
+++ From SGX / Bloomberg (17 August)
++++ Estimated from company information
5 Most effective Singapore REITs In YTD 2021
#1 Keppel DC REIT (46.7%)
#2 Mapletree Industrial Trust (29.6%)
#3 Mapletree Logistics Trust (26.0%)
#4 Ascendas REIT (23.0%)
#5 Frasers Logistics & Commercial Trust (13.1%)
Keppel DC REIT is the greatest performing REIT in the YTD 2021. Unsurprisingly, its assets are concentrated within the data centre space – which has been a key beneficiary of COVID-19 around the back of greater focus on e-commerce and digitalisation. Similarly, Mapletree Industrial Trust has data centre assets and has also announced that it will enlarge its data centre portfolio with an acquisition.
The three other REITs rounding the top five performing REITs in Singapore are within the logistics space, another beneficiary of the rise of e-commerce.
5 Highest Yielding REITs In YTD 2021
#1 Hutchison Port Holdings (12.1%)
#2 First REIT (11.9%)
#3 Lippo Malls Indonesia Trust (11.2%)
#4 ARA Hospitality Trust (11.2%)
#5 Manulife US REIT (9.7%)
When we look at the highest yielding REITs, we should be aware that high yield typically means high risk. This is highlighted through the three best performing REITs – First REIT and Lippo Malls Indonesia Trust – that also delivered a YTD return of -41.7% and -46.3% respectively.
ARA US Hospitality Trust is in the uncertain hospitality industry, which is still mired with uncertainties. Actually, another US-focused hospitality REIT – Eagle Hospitality Trust – would have been listed as the worst performing REIT if not for the suspension in trading its shares, that is down 75.1% in the YTD.
In general, it appears as though the top yield REITs are also some of the worst performing REITs. This means the very best five names may be artificially placed – are investors expected their distributions to be impacted in the coming months, hence it looks like it is offering good yields.
5 Worst Performing Singapore REITs in YTD 2021
#1 Eagle Hospitality trust (-75.1%)
#2 ARA Hospitality Trust (-54.6%)
#3 Lippo Malls Indonesia Trust (-46.3%)
#4 First REIT (41.7%)
#5 Frasers Hospitality Trust (-39.0%)
Suspended Eagle Hospitality Trust may be the worst performing REIT in Singapore, having a negative 75.1% return in YTD 2021. Besides the impact of the coronavirus on tourism in the US, the REIT is also entangled with corporate governance issues.
In fact, three from the top five worst performing REIT have been in the hospitality sector, with ARA Hospitality Trust and Frasers Hospitality Trust turning in a return of negative 54.6% and negative 39.0% respectively.
The two other REITs rounding off the top five worst performing REITs in Singapore are Lippo Malls Indonesia Trust and First REIT – also the two highest yielding REITs in Singapore.
