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Ascendas REIT to join the STI on Wednesday 4 June

  • CapitaMalls Asia will be deleted from the Straits Times Index (STI) effective the start of trading on 4 June. Ascendas Real Estate Investment Trust (REIT) will then join the STI.
  • Ascendas REIT is Singapore's first and largest listed business space and industrial real estate investment trust. The market capitalisation of the REIT is S$5.8 billion and the current indicative dividend yield of the REIT is 5.9%.
  • Ascendas REIT will become the second REIT to join the STI. CapitaMall Trust joined the STI in March 2005.

On Wednesday 4 June, Ascendas REIT will join the Straits Times Index (STI). CapitaMalls Asia will be deleted from the STI following the acceptance levels for the cash offer of CapitaMalls Asia by Sound Investment Holdings reaching in excess of 85% and in accordance with the Index Ground Rules. The announcement can be found here.

Corresponding with this move on effective 4 June, Ascendas REIT will then be deleted from the FTSE ST Mid Cap Index. Ezra Holdings (5DN) will then move from the FTSE ST Small Cap Index to the FTSE ST Mid Cap Index.  Ascendas REIT was previously part of the STI Reserve list which comes into play if a constituent is deleted from the Index during the intra-review period. 

Ascendas REIT 

Ascendas REIT, also referred to as A-REIT, is Singapore's first and largest listed business space and industrial real estate investment trust. According to a recent investor presentation, Ascendas REIT maintained total assets of about S$7.4 billion as of the end of March 2014 with assets including 103 properties in Singapore and two business park properties in China. The presentation noted these properties are diversified across business parks, science parks, Hi-specs Industrial, data centres, light industrial, flatted factories, logistics & distribution centres and warehouse retail facilities. The presentation can be found here.

Ascendas REIT will become the second REIT to be a part of the STI. The first REIT to be listed on Singapore Exchange (SGX), CapitaMall Trust, joined the STI in March 2005. REITs are a well-established asset class that combine the liquidity and accessibility of stock market investing with the stability and physicality of real estate. The REITs and property trusts listed on SGX provide a diverse mix of local and international property assets that house industrial, commercial, retail, residential and specialised tenants.

The table below details the current STI constituents and five stocks of the STI Reserve List. As noted above, effective 4 June Ascendas REIT will join the STI and CapitaMalls Asia will be deleted.

Name SGX Code Market Cap S$M Total Return YTD % Total Return 12M % Dvd Ind Yld % ICB Subsector Name
SINGAPORE TELECOMMUNICATIONS Z74

61698

5.7

2.7

4.3

Mobile Telecommunications
JARDINE MATHESON HLDGS LTD J36

52899

19.1

-5.5

2.3

Diversified Industrials
JARDINE STRATEGIC HLDGS LTD J37

49986

11.1

-11

0.7

Diversified Industrials
DBS GROUP HOLDINGS LTD D05

41526

0.4

0.5

3.4

Banks
UNITED OVERSEAS BANK LTD U11

35483

6.8

6.9

3.2

Banks
OVERSEA-CHINESE BANKING CORP O39

33251

-3.6

-8.8

3.5

Banks
HONGKONG LAND HOLDINGS LTD H78

20756

18.3

-2.8

2.6

Real Estate Holding & Development
WILMAR INTERNATIONAL LTD F34

20733

-3.4

-0.3

2.5

Food Products
KEPPEL CORP LTD BN4

19435

-1.7

3.1

3.7

Oil Equipment & Services
GENTING SINGAPORE PLC G13

16284

-10.7

-8.6

0.8

Recreational Services
JARDINE CYCLE & CARRIAGE LTD C07

16028

29.1

0.7

3

Specialty Retailers
THAI BEVERAGE PCL Y92

15192

17.1

-5.9

2.6

Brewers
CAPITALAND LTD C31

13541

6.3

-11.8

2.5

Real Estate Holding & Development
GLOBAL LOGISTIC PROPERTIES L MC0

13375

-3.8

-1.1

1.6

Real Estate Holding & Development
SINGAPORE AIRLINES LTD C6L

12097

-0.6

-1.9

2.1

Airlines
SINGAPORE TECH ENGINEERING S63

11847

-0.8

-4.6

1.8

Aerospace
SEMBCORP INDUSTRIES LTD U96

9649

0.5

11.3

2.8

Oil Equipment & Services
CITY DEVELOPMENTS LTD C09

9548

10.3

-1.6

0.8

Real Estate Holding & Development
CAPITAMALLS ASIA LTD JS8

9160

20.8

19.6

1.5

Real Estate Holding & Development
NOBLE GROUP LTD N21

8813

26.4

29.4

0.8

Diversified Industrials
SEMBCORP MARINE LTD S51

8481

-7

-5.1

2.7

Oil Equipment & Services
HUTCHISON PORT HOLDINGS TR-U NS8U

8023

14

-1.2

7.8

Transportation Services
SINGAPORE EXCHANGE LTD S68

7447

-3.6

-4.5

4.1

Investment Services
GOLDEN AGRI-RESOURCES LTD E5H

7382

6.4

3.6

1.9

Farming & Fishing
STARHUB LTD CC3

7138

-0.4

2.6

4.8

Mobile Telecommunications
CAPITAMALL TRUST C38U

7060

11.7

-1.7

5

Retail REITs
SINGAPORE PRESS HOLDINGS LTD T39

6750

4.2

5.8

3.6

Publishing
SIA ENGINEERING CO LTD S59

5528

-2.6

1

4

Transportation Services
OLAM INTERNATIONAL LTD O32

5430

40.1

18.7

1.9

Food Products
COMFORTDELGRO CORP LTD C52

4924

19.2

25.8

3

Travel & Tourism

Source: Bloomberg (data as of 27 May 2014)

Name SGX Code Market Cap S$M Total Return YTD % Total Return 12M % Dvd Ind Yld % ICB Subsector Name
ASCENDAS REAL ESTATE INV TRT A17U

5790

12.2

0.2

5.9

Industrial & Office REITs
KEPPEL LAND LTD K17

5426

8.7

-10.1

3.7

Real Estate Holding & Development
UOL GROUP LTD U14

5220

12.8

-1.7

2.2

Real Estate Holding & Development
CAPITACOMMERCIAL TRUST C61U

4793

17.8

8.3

5

Industrial & Office REITs
YANGZIJIANG SHIPBUILDING BS6

4311

-1.2

33.1

4.5

Commercial Vehicles & Trucks

Source: Bloomberg (data as of 27 May 2014)

 

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Geoff Howie
Geoff Howie

Mr Howie is the Singapore Exchange's Market Strategist - and the key contributor to the educational content and market insights of SGX My Gateway. He is also part of the Associate Faculty at SIM University,  educating students on the fundamentals of investing. 

He previously held lead broking and strategist roles across the Asia Pacific offices of a large international futures broker. Outside of his 15 year career in the financial markets he has also served as the Treasury Adviser to the Leader of the Queensland Liberal Party in Queensland Parliament.

Following High School in Hong Kong, he attended University of Queensland, receiving a Bachelors and Master's degree in Economics, the latter extending into deferred PhD work after receiving the highest grading for first-mover research and modelling conducted on the Shanghai economy.

Mr Howie's other notable achievements include receiving two Hong Kong Securities Institute Outstanding Achievers awards for the 2005 year.