Singapore has established itself as Asia’s hub for real estate investment trusts (REITs).
According to data from REITAS, Singapore’s REIT (S-REIT) sector accounts for 12% of the Lion city’s stock market capitalisation, as of 30 June 2021.
This ratio is high compared to other Asian countries, including Japan (2%), Malaysia (2%), Hong Kong (0.4%) and India (0.3%), indicating its importance to the local bourse.
The most-watched S-REIT index in Singapore is the iEdge S-REIT index.
The heavyweights of the S-REIT sector
The iEdge S-REIT index is weighted by market capitalisation.
There are 37 REITs that make up the index but the top 10 largest hold more influence compared to others.
Let’s take a look at which are the 10 biggest components of the index.
|Company||Ticker Symbol||Index Weight|
|Ascendas Real Estate Investment Trust||A17U||9.68%|
|Mapletree Logistics Trust||M44U||9.11%|
|CapitaLand Integrated Commercial Trust||C38U||8.25%|
|Mapletree Industrial Trust||ME8U||8.07%|
|Mapletree Commercial Trust||N2IU||7.70%|
|Frasers Logistics and Commercial Trust||BUOU||5.54%|
|Keppel DC REIT||AJBU||5.16%|
|Frasers Centrepoint Trust||J69U||3.91%|
|Mapletree North Asia Commercial Trust||RW0U||3.44%|
Source: iEdge S-REIT Indices factsheet, as of 30 June 2021
The Big 10 REITs in Singapore
The top 10 REITs make up the lion’s share of the iEdge S-REIT index, accounting for close to two-thirds of the index’s weightage.
As such, the dectet holds an outsized influence on the S-REIT index’s movement.
The largest component is Ascendas Real Estate Investment Trust (SGX: A17U) with a 9.68% weightage and a market capitalisation of around S$12.6 billion.
As of 30 June 2021, the industrial REIT is home to over 211 properties which are spread out across Singapore, Australia, the United States, the United Kingdom, and Europe.
Earlier this year, Ascendas REIT made a big move into data centres, splashing out over S$900 million to acquire 11 new assets in Europe.
The REIT is also a key component in Singapore’s Straits Times Index (SGX: ^STI).
Mapletree Logistics Trust (SGX: M44U), which has a market cap of S$8.5 billion, is in second place with a 9.11% contribution.
As its name suggests, the logistics-focused REIT houses over 163 properties located around Asia, including in Singapore, Hong Kong SAR, China, Japan, Australia, South Korea, Malaysia, Vietnam and Index.
Besides Mapletree Logistics Trust, there are another three representatives from the Mapletree family, namely Mapletree Industrial Trust (SGX: ME8U) with a 8.07% weightage, Mapletree Commercial Trust (SGX:N2IU) at 7.7% and Mapletree North Asia Commercial Trust (SGX: RW0U) at 3.44%.
Ascendas REIT is also the only blue-chip REIT in Singapore’s STI.
The Mapletree trio of Mapletree Logistics Trust, Mapletree Industrial Trust and Mapletree Commercial Trust are also peers in the main Singapore index.
The four blue-chip REITs above are joined by CapitaLand Integrated Commercial Trust (SGX: C38U), or CICT, and Frasers Logistics and Commercial Trust (SGX: BUOU), or FLCT, as the six REITs that feature both on the STI and the iEdge S-REIT index.
CICT, which owns a collection of 22 retail and commercial properties worth S$22.3 billion, accounted for 8.25% of the iEdge S-REIT Index weightage. The REIT has a market cap of S$13.7 billion.
Onward to a new economy
As a whole, the Top 10 REITs in the iEdge S-REIT index provides investors with exposure to the traditional property sectors such as industrial, retail and commercial.
To be sure, there is also more than a hint of “new economy” properties in the mix.
Keppel DC REIT (SGX: AJBU) is Singapore’s only pure play data centre REIT which owns 19 data centres located in eight countries worth S$3.1 billion as of 30 June 2021.
Meanwhile, Mapletree Industrial Trust has grown its data centre exposure to well over 50% of its assets.
In July, the REIT closed a deal to bring 29 US data centres into the portfolio, making it one of the Asia Pacific’s largest data-centre owners.
Mapletree Industrial Trust has a market cap of S$7.1 billion.
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Disclosure: Chin Hui Leong owns shares in Ascendas REIT, Mapletree Logistics Trust, Mapletree Industrial Trust, Mapletree Commercial Trust, Frasers Logistics and Commercial Trust, Capitaland Integrated Commercial Trust, Frasers Centrepoint Trust, and Keppel DC REIT.