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28 REITs and six stapled trusts averaged 2014 total return of 13%

  • There are 28 REITs and six stapled trusts listed on Singapore Exchange (SGX), with a combined market capitalisation of S$66.7 billion.
  • These 34 trusts averaged a 2014 total return of 12.9% and maintain an average dividend indicative yield of 6.4%.
  • In terms of total return generated in 2014, the five best performers were Fortune REIT, Suntec REIT, CapitaRetail China Trust, CapitaCommercial Trust and First Real Estate Investment Trust.

Real Estate Investment Trusts (REITs) are traded on major exchanges just like stocks. They can invest in a wide range of diversified real estate assets such as office, residential, retail, hospitality, industrial properties or hi-tech parks. The income generated by these properties are distributed to the investors as dividends. In Singapore, REITs listed on Singapore Exchange (SGX) have to distribute a minimum of 90% of taxable income to investors.

Additionally, stapled securities consist of different securities stapled jointly, whereby the combined entity is treated as one security to be traded. An example is CDL Hospitality Trusts, which comprises of a REIT and a business trust, namely CDL Hospitality REIT and CDL Hospitality Business Trust respectively. For CDL Hospitality Trusts, the trust component of the stapled entity is managed by a responsible entity who performs both roles as a ‘’trustee" and a "manager".

There are 28 REITs and six stapled trusts listed on Singapore Exchange (SGX), with a combined market capitalisation of S$66.7 billion. These 34 trusts averaged a 2014 total return of 12.9% and maintain an average dividend indicative yield of 6.4%. In terms of total return generated in 2014, the five best performers were Fortune REIT, Suntec REIT, CapitaRetail China Trust, CapitaCommercial Trust and First Real Estate Investment Trust.

The table below details the 34 trusts sorted according to 2014 total return. Rather than including the current quarter’s pro-rata distribution as per Bloomberg’s Equity Screening tool, yields for Viva Industrial Trust, Lippos Malls Indonesia Retail and Keppel REIT are derived by annualising the previous quarter’s distribution. Total returns incorporate both price changes and reinvested dividends.

Name SGX Code Market Cap: S$M Total Return YTD % Total Return 2014 % Dvd Ind Yld %
FORTUNE REIT F25U 2482.9 0.3 38.5 5.4
SUNTEC REIT T82U 4904.4 0.0 34.4 4.8
CAPITARETAIL CHINA TRUST AU8U 1337.4 0.6 29.4 6.1
CAPITACOMMERCIAL TRUST C61U 5168.2 -0.9 27.7 4.9
FIRST REAL ESTATE INVT TRUST AW9U 918.3 0.4 26.8 6.4
MAPLETREE COMMERCIAL TRUST N2IU 2966.3 0.7 25.7 5.5
MAPLETREE GREATER CHINA COMM RW0U 2577.7 0.0 21.3 6.7
MAPLETREE LOGISTICS TRUST M44U 2925.5 -0.8 20.1 6.4
MAPLETREE INDUSTRIAL TRUST ME8U 2572.5 0.7 19.6 7.0
FRASERS COMMERCIAL TRUST ND8U 961.0 0.4 18.7 6.2
ASCENDAS REAL ESTATE INV TRUST A17U 5725.6 0.8 15.3 6.1
FRASERS CENTREPOINT TRUST J69U 1735.4 1.3 14.4 5.8
CDL HOSPITALITY TRUSTS J85 1705.7 0.3 13.3 6.0
CAPITAMALL TRUST C38U 7062.8 0.0 13.1 5.3
OUE COMMERCIAL REAL ESTATE TS0U 700.5 0.6 13.0*** 3.0**
OUE HOSPITALITY TRUST SK7 1195.9 1.1 13.0 7.2
SPH REIT SK6U 2618.7 0.0 12.5 5.3
VIVA INDUSTRIAL TRUST T8B 493.1 1.3 12.4 8.4*
ASCOTT RESIDENCE TRUST A68U 1949.5 0.0 12.1 6.2
CACHE LOGISTICS TRUST K2LU 905.5 0.0 12.0 7.4
SOILBUILD BUSINESS SPACE REIT SV3U 642.3 0.0 10.9 7.8
KEPPEL REIT K71U 3867.9 0.4 10.8 6.1*
AIMS AMP CAPITAL INDUSTRIAL O5RU 884.1 0.7 10.2 7.8
STARHILL GLOBAL REIT P40U 1722.6 1.2 8.4 6.3
PARKWAYLIFE REAL ESTATE C2PU 1439.9 -1.3 6.3 4.9
CAMBRIDGE INDUSTRIAL TRUST J91U 862.9 0.0 5.7 7.4
KEPPEL DC REIT AJBU 860.9 0.0 4.8*** N/A
FAR EAST HOSPITALITY TRUST Q5T 1446.3 0.6 3.4 6.4
ASCENDAS HOSPITALITY TRUST Q1P 756.2 0.0 1.9 7.2
FRASERS HOSPITALITY TRUST ACV 1061.4 -1.1 1.1*** N/A
IREIT GLOBAL UD1U 373.2 1.1 1.1*** N/A
SAIZEN REIT T8JU 243.9 0.0 -0.4 7.2
SABANA SHARIAH COMP IND REIT M1GU 681.1 0.0 -6.2 7.7
LIPPO MALLS INDONESIA RETAIL TRUST D5IU 918.6 1.5 -11.1 8.0*

Source: Bloomberg (Data as of 2 January 2015) *note yields are annualized based on previous quarter's distribution information preceding most recent pro-rata payment, **based on distribution since listing, *** from offer price

Fortune REIT

Fortune Real Estate Investment Trust, through its subsidiaries, engages in the ownership and investment of retail shopping malls in Hong Kong. As of December 31, 2008, it holds a portfolio of 11 retail malls and properties located in Hong Kong. Fortune REIThas a market capitalization of S$2482.9 million and generated 2014 total return of 38.5%. On 11 Nov 2014, Fortune REIT reported a total revenue of HK$1230.1 million for the nine months ended 30 September 2014, an increase of 33.0% year-on-year (Click here to view). Fortune REIT went ex-dividend on 7 Aug 2014, distributing HKD0.2088 per share in dividends.

Suntec REIT

Suntec Real Estate Investment Trust is a real estate investment fund managed by ARA Trust Management (Suntec) Limited. The fund invests in real estate and real estate-related assets that are primarily used for retail or office purposes. Suntec REIThas a market capitalization of S$4904.4 million and generated 2014 total return of 34.4%. On 21 Oct 2014, Suntec REIT reported a total distribution income of S$58.3 million for the period 1 July to 30 September 2014 (“3Q FY14”) which is an increase of 12.4% year-on-year (“3Q FY13”) (Click here to view). Suntec REIT went ex-dividend on 28 Oct 2014, distributing S$0.0044 per share in dividends.

CapitaRetail China Trust

CapitaRetail China Trust operates as a real estate investment trust in Singapore. It invests in a portfolio of retail real estate properties located primarily in the People’s Republic of China, Hong Kong, and Macau. The company’s portfolio include eight shopping malls located in Beijing; Shanghai; Zhengzhou, Henan Province; Huhhot, Inner Mongolia; and Wuhu, Anhui Province. CapitaRetail China Trust has a market capitalisation of S$1337.4 million and generated 2014 total return of 29.4%. On 24 Oct 2014, CapitaRetail China Trust reported a gross revenue of RMB253.7.0 million for the quarter ended 30 September 2014, an increase of 32.3% year-on-year (Click here to view). The trust went ex-dividend on 6 Aug 2014, distributing S$0.0499 per share in dividends.

CapitaCommercial Trust

CapitaCommercial Trust invests in real estate and real estate-related assets which are primarily used for commercial purposes in Singapore. In addition, CapitaCommercial Trust has interests in Malaysia through a 30% stake in Quill Capita Trust (QCT), a commercial REIT listed on the Bursa Malaysia Securities Berhad. CapitaCommercial Trust has a market capitalisation of S$5168.2 million and generated 2014 total return of 27.7%. On 26 Nov 2014, CCT reported a realized net income of RM8.93 million for the quarter ended 30 September 2014, an increase of 0.2% in the corresponding quarter in the preceding year. (Click here to view). The trust went ex-dividend on 24 July 2014, distributing S$0.0008 per share in dividends.

First Real Estate Investment Trust

First Real Estate Investment Trust is a REIT fund launched and managed by Bowsprit Capital Corporation Limited. It invests in the real estate markets of Asia including Indonesia, Singapore, China, Malaysia, Thailand, and Hong Kong. The fund seeks to invest in the diversified portfolio of real estate related assets operating healthcare and/or healthcare-related purposes. First Real Estate Investment Trust has a market capitalization of S$918.3 million and generated 2014 total return of 26.8%. On 17 October 2014, First Real Estate Investment Trust reported their third quarter revenue for the period ended 30 September 2014, increased by 14.7% to S$69.3 million from the previous quarter (Click here to view). The trust went ex-dividend on 24 October 2014, distributing S$0.0124 per share in dividends.

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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.