Ascott Trust; Suntec REIT; CTIC; FHT; Keppel REIT



In the second quarter of 2022, the Straits Times Index (STI) posted a negative total return of 8%. This is not so surprising, as global markets have been extremely volatile at this time, marked by Russia’s invasion of Ukraine, supply chain disruptions, runaway inflation and rising interest rates. of interest.

Following this, the SGX reported that institutions withdrew nearly $1.1 billion from Singapore stocks in the second quarter of 2022 on an aggregate basis. Diving deeper, the banking, technology and REIT counters recorded the sharpest institutional outflows across all sectors.

In this difficult operating environment, there were still 5 REITs that managed to attract more institutional funds – pumping an additional $300 million into the meters in 2022. This acted as a catalyst for their 18% average total return in average over the year to date 2022.

Also Read: How Singapore’s Food and Farm Stocks Could Be Hit by Global Food Supply Shock – Wilmar; Olam; Golden Agri-Resources; japfa

#1 Ascott Residence Trust (SGX: HMN)

With a diversified portfolio of hotel properties in Asia-Pacific (62%), Europe (19%) and the United States (19%), Ascott Residence Trust (ART) was seen as a beneficiary of the reopening of the economy world.


That also appears to be happening, with its Q1 2022 results showing better gross revenue and profit “due to contributions from newly acquired properties and better operating performance.” Its revenue per available property unit (RevPAU) increased 22% year-on-year to $67 in Q1 2022.

Year-to-date 2022, ART has achieved a total return of 14%. Most of its share price increase came on the eve of Singapore lifting safe management measures and issuing its 1Q2022 trade update. Promisingly, ART’s stock price has remained relatively flat since the initial spike.

SGX also reported that ART recorded a net inflow of $44 million from institutional funds. This translates to 1.2% of its market capitalization (of $3.8 billion).

#2 Suntec REIT (SGX: T82U)

As most of the security management measures were lifted at the end of April 2022, shoppers and employees were able to return to Suntec’s integrated shopping center and office towers.

In Suntec REIT’s 2022 first quarter business report, it showed a lot of strength. Gross revenue increased 14%, while unit distribution increased 17%. Looking ahead, its office and retail portfolio both held guaranteed occupancy rates above 95%.

So far, Suntec REIT has delivered a total return of 15% year-to-date. The increase was more gradual, from the beginning of February 2022 – until the publication of its results at the end of April. Thereafter, it declined slightly due to increased global uncertainties.

According to SGX, Suntec REIT has benefited from a net institutional contribution of approximately $53 million since the beginning of the year. That’s about 1.1% of its $4.9 billion market capitalization.

CapitaLand Integrated Commercial Trust #3 (SGX: C38U)

Singapore’s (probably) largest and most popular REIT, CICT owns many established shopping malls and commercial properties across Singapore. Probably Suntec REIT, the lifting of security management measures was a boon for the REIT.

In its Q1 2022 business update, better gross revenue. The strength of its portfolio was underlined by a portfolio occupancy rate of nearly 94%. More interestingly, retail sales across its portfolio grew by 0.6% on average, while its office portfolio in Singapore saw rents increase by 1.5%.

Year-to-date 2022, CICT has achieved a total return of 6%. While its 2022 share price peaked at the announcement of the lifting of safe management measures in Singapore (April 26, 2022), it remained relatively flat thereafter.

In absolute terms, it also recorded the largest net inflow of institutional funds of $154 million. This translates to approximately 1.1% of its $14.3 billion market capitalization.

#4 Frasers Hospitality Trust (SGX: ACV)

FHT is currently the subject of a privatization agreement by Frasers Property. Again, hotel properties are seen as the beneficiaries of the reopening of global borders.

In FHT’s latest H1 2022 earnings, gross revenue increased 10%, while distribution to its investors increased more than 3%.

Since the start of 2022, FHT has achieved a total return of 51%. While FHT’s stock price rose in anticipation of safe management measures and positive results at the end of April, it also benefited from the recent $0.70 privatization offer. This was done when its stock price was $0.66 before the announcement.

SGX reports that FHT has gained a net inflow from institutions of $13 million since the start of the year. That’s about 1.0% of its $1.3 billion market capitalization.

REIT #5 Keppel (K71U)

Keppel REIT owns Class A office properties in Singapore (78%), Australia (18%) and South Korea (4%). This is yet another beneficiary of employees returning to work in a new normal world.

Its latest Q1 2022 business update details a 6% increase in its ownership. It also presented a retention rate of 91% of its tenants in 1Q 2022.

Keppel REIT is doing the worst among the 5 REITs featured – earning a total return of 3% since the start of 2022. Despite the positive total return, it is also the only REIT on this list with a movement negative share price in the year-to-date 2022.

Nonetheless, SGX reports that Keppel REIT has seen an institutional net inflow of $41 million so far in 2022. This represents approximately 1.0% of Keppel REIT’s $4.2 billion market capitalization.

Also read: 5 China-focused S-REITs you can invest in: CapitaLand China Trust; BHG Retail REIT; Dasin Retail Trust; EC World REIT; Sasseur REIT

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4 actions this week is not a recommendation by us to buy or sell any of these stocks. For investors eager to learn more, you should continue to educate yourself about them before making your investment decisions.


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