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The SGX S-REIT 20 Index is an adjusted free-float market capitalization-weighted index that measures the performance of the 20 largest and most tradable REITs listed on SGX and is a narrow, tradable and well-diversified portfolio allowing highly efficiency access into the listed REIT segment in Singapore. Index Methodology The SGX S-REIT 20 Index is part of a suite of equity indices representing four key segments of the SGX Securities market. As discussed yesterday (click here), the indices are designed to measure the performance of key investable themes in Singapore – real estate; healthcare; mineral, oil and gas (MOG); and maritime & offshore (MOE). To be eligible for SGX S-REIT 20 Index inclusion, a company’s business sector must be classified as “Residential & Commercial REIT”, as defined by the Thomson Reuters Business Classification (Section 13). Hence a constituent can be either a REIT or Stapled Security. All eligible companies will be screened for liquidity semi-annually in March and September. Newly listed companies are treated as new constituents, with liquidity screened from the date of listing to the review cut-off dates. Liquidity screening accounts for two parameters:
New and existing constituents of the SGX S-REIT 20 Index must meet a minimum daily traded velocity of 0.10% and 0.08% respectively. Daily traded velocity is derived by dividing (i) daily traded value by (ii) free-float market capitalization. Following on from the last rebalance Parkway Life is scheduled to join the SGX S-REIT 20 Index, replacing OUE Commercial REIT on Monday 28 March. The SGX S-REIT 20 Index, which consists of 20 constituents, have a combined market capitalisation of S$51.8 billion. In the month thus far, the Index has gained 2.0% in total return. This compares to Bloomberg Asia REIT Index which gained 0.5% in SGD basis, over the same period. The Index maintains a dividend yield of 6.3% compared to Bloomberg Asia REIT Index dividend yield of 4.5%.
Source: SGX & Bloomberg (data as of 22 March 2016) In the year to date the SGX S-REIT 20 Index has generated a total return of 7.2%. SGX S-REIT 20 Index Subsector Weights The Index is diversified across types of property assets. The Global Industry Classification Standard (GICS®) is applied by SGX StockFacts to help define the different sectorial focus within the REIT sector. Retail REITs, which are made up of shopping malls, account for the largest index weights. CapitaLand Mall Trust, a retail REIT, was the first of the sector to list in 2002, almost thirty years after Singapore’s first shopping centre became air-conditioned. The Retail REIT Sector spans businesses engaged in the acquisition, development, ownership, leasing, management and operation of shopping malls, outlet malls, neighbourhood and community shopping centres. Retail REITs are followed by Industrial REITs, Office REITs, Diversified REITs, Hotel & Resort REITs and Residential REITs. SGX S-REIT 20 Index GICS® Industry Weights
Source: SGX & Bloomberg (data as of 22 March 2016) Of the 20 constituents, three are part of the Straits Time Index (STI) – Ascendas Real Estate Investment Trust, CapitaLand Commercial Trust and CapitaLand Mall Trust. SGX S-REIT 20 Index Asia Exposure Constituents of the SGX S-REIT 20 Index are diversified by location in addition to property type. More than half the trusts have property assets located outside Singapore, mostly around Asia. This includes countries such as China, Hong Kong, Vietnam, Japan, Indonesia, South Korea, Philippines and Malaysia.
Source: SGX Dividend Yields REITs allow individual investors to access real property assets and share the benefits and risks of owning a portfolio of property assets which typically distribute income at regular intervals. The five highest yielding index constituents have been Cache Logistics Trust (10.3%), OUE Hospitality Trust (9.7%), Lippo Malls Indonesia Retail Trust (9.5%), CDL Hospitality Trusts (8.1%) and Mapletree Logistics Trust (7.6%). Of the five, one distributes dividends on a semi-annual basis, and four on a quarterly basis. The current 20 SGX S-REIT 20 Index constituents are tabled below, and are sorted according to index weight. Clicking on a stock name will take you to its relevant page on StockFacts.
Source: SGX, Bloomberg & SGX StockFacts (data as of 22 March 2016) *Please note total returns of the stocks are based on returns since their respective IPO date ** Please note constituent is a stapled security
Source: SGX, Bloomberg & SGX StockFacts (data as of 22 March 2016) |
