The Ascendas Real Estate Investment Trust Sgx

For CICT, the negative share price performance since the merger was first proposed in January 2020 could have been due to the continued uncertain prospects for the retail and office sectors, coupled with the law of diminishing marginal returns at work. CapitaLand is one of the largest real estate companies in Asia, with a total portfolio of S$131.7 billion as at Sept 30, 2019. It currently manages eight listed REITs and business trusts as well as more than 20 private funds. CapitaLand Malaysia Mall Trust is a Bursa Malaysia-listed REIT while Singapore-listed Ascendas REIT is one of the top holdings of many of Asia-Pacific REIT funds in the market. Last year, the industrial sector weathered the storm better than other sectors such as retail and offices.

Additionally, earnings drivers are also materialising in terms of i) steady growth in Singapore’s residential market, , and ii) a recovery in rental income and property revaluation gains. Data compiled by The Business Times shows the acquirer’s (or combined entity’s) share price and total returns for most of the five successful Reit mergers disappointing over time. EdgeProp.my is Malaysia’s most useful property website for home buyers and investors. At EdgeProp.my, you can find daily breaking news on property, and hundreds of thousands of properties for sale and rent with detailed information such as past transacted prices, maps and photos. We offer a full collection of the most popular property types in the market – condominiums and apartments, landed properties, residential land and commercial properties. All three fund houses believe that REITs are the go-to defensive asset class to look at in the current market environment.

Of course, the Reits’ performance have been tied to the fates of the sectors they are focused on, which explains the heavy blow delivered to hospitality landlords ART and OUECT. The latter had acquired OUE Hospitality Trust and its hotel assets such as Mandarin Orchard Singapore and Crowne Plaza Changi Airport. “The beauty of being part of a global organisation is that you get to see what is happening in the US.

Older business parks, however, which may not be be a good fit for such companies, may see downward pressure on their rents. “Significantly, Singapore REITs also look attractive when comparing current dividend yields to bond yields with a gap of 3.84%,” say Credit Suisse lead analyst Sakthi Siva in a Wednesday report. In this category, some funds — such as the AmAsia Pacific REIT Class B Fund — are pure REIT funds, with the majority of their holdings comprising REITs in Asia-Pacific.

“Physical buildings are the underlying assets of REITs, tangible assets which they can visit for themselves. AHAM’s Khoo says investors should not invest in REITs based on sector or country alone, but should also take into account the demand and supply dynamics. Assume that in a Singaporean office REIT, there are tenants that have signed leases of two to three years but the rental rate they are paying is actually below the current market rate. “Based on our fund’s performance in 1H2019, Singapore REITs recorded a growth of 20%, Hong Kong, 12.3% and Australia, 9.4%. In terms of sectors, industrial REITs saw a growth of 23%, office REITs, 16.9% and healthcare REITs, 16.42%,” says Manulife’s Chong.

For Electronic Technology, Finance, Technology Service takes a total of 14% of the portfolio, it is build up by VanEck Vector Semiconductor ETF , Apple Inc , and Facebook . I choose to invest in the technology sector because of having good future prospects of technology such as work from home WFH trend and 5G technology. This is also the sector that contributes the most to my portfolio in the year 2020.

The report also describes data centres as a rapidly growing segment due to the rapidly rising demand for network services and a shortage of infrastructure. It highlights China as the fastest-growing prospect because of massive demand from internet companies such as Alibaba Group Holding Ltd, Tencent Holdings Ltd and Baidu Inc. Fund managers say pockets of opportunities can be found in the regional REIT sector, particularly in the office, logistics and healthcare segments. Manulife’s Chong believes that the emergence of 5G will help boost the overall earnings of the REIT industry in Asia-Pacific. “On the back of the continued opaque macro and dovish monetary policy stances, investor interest in defensive, dividend-yielding stocks such as REITs is expected to be sustained. The supportive low interest rate environment also allows lower cost of capital for REITs, promoting cheaper funding for yield-accretive acquisitions.

As at end-December last year, several local real estate investment trust funds that focus on investments in Asia-Pacific had a few holdings in common. These included Singapore-based CapitaLand Ltd and Mapletree Investments Pte Ltd. Hong-Kong-based Link REIT also featured as one of the top holdings of some funds. Innovative real estate investment trust structures in more developed markets such as the US can serve as an indication of what Asian investors can look forward to in the future. The US is a good reference point as its REIT market is far the largest in the world with a market capitalisation of US$1.05 trillion in 2018, according to EY’s Global REIT Market Report.

However, this sector has been shrouded in controversy, with many investors not in favour of investing in businesses that encourage incarceration. Last year, JPMorgan Chase, Wells Fargo and Bank of America stopped financing private prisons amid pressure from social activist groups, which resulted in a drop in the share prices of prison REITs. Despite that, he is confident that REITs will remain an attractive asset class as their underlying assets are real estate.

United Engineers , a property development and engineering company, added 0.6% to $1.75. Star Cruises , Asia’s biggest cruise operator, gained 5.1% to 20.5 U.S. cents. The company said its unit NCL Corp. posted a net income of US$15.4 million (S$22.3 million) in the second quarter, compared with a loss of US$27 million a year ago. If you spot an error that warrants correction, please contact the editor at editorial- This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation.

Before forming an opinion on Ascendas Real Estate Investment Trust you might want to consider the cold hard cash it pays as a dividend. The loosening of office restrictions since April 5 could gradually put the business parks market on the road to recovery, although at the same time, some companies are transitioning towards a hybrid work model which incorporates flexible working. However, the performance across the industrial market may vary, with rents for certain segments, such as multiple-user factory space, possibly coming under pressure due to economic uncertainties, according to NUS’ Institute of Real Estate and Urban Studies .

One of the ways local investors can get broad-based exposure to REITs in the region is via unit trust funds. Of the 10 unit trusts listed under the “Equity sector real estate Asia-Pacific” category, nine belong to the conventional category and delivered strong returns of 12.58% to 21.67% over the one-year period ended Jan 3. Driving this rebound are companies that benefit from Singapore’s reopening and/or are levered to economic activities such as banks, real estate investment trust as well as travel and tourism-related names. In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. One way to examine how market sentiment has changed over time is to look at the interaction between a company’s share price and its earnings per share .

According to the Singapore Exchange , the eight listed counters of CapitaLand had generated an average total return of 28.2% for the year to September 2019. SGX described the returns as above the average and median returns of the 100 largest capitalised property stocks in the world, as well as the 100 largest in Asia-Pacific, which stood at 20% and 16% respectively. According to a PwC report, Emerging Trends in Real Estate Asia-Pacific 2019, the logistics sector has seen growing demand, mainly driven a maturing e-commerce industry, with a particular emphasis on last-mile delivery hubs.

The company said it sold 185 million shares at $1.63 each, raising $296 million in net proceeds. The trust said it had planned to sell the shares at between $1.63 and $1.70 each. We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Still, many Reit managers may argue that there is merit to Reit mergers given the boost they can lend to trading liquidity and index inclusion. CapitaLand Mall Trust and CapitaLand Commercial Trust were already enormous to begin with, with a market capitalisation of more than S$9 billion and S$8 billion respectively before the merger.

In fact, all of them – except for FLCT – have not recovered to levels before March 2020 when S-Reit prices went into a freefall. This was when the severity of the pandemic was just becoming clearer, and fuelled mass selling by institutional funds as well as margin calls from private banks. In addition, the analyst adds that corporate fundamentals could be worse in Singapore, with falling property prices and rising vacancy rates. However, Credit Suisse stresses that valuations such as previous lows on price-to-book and dividend yields versus bond yields only provide a “rough guide”. At press time, the prison REIT sector only consisted of two publicly traded counters — CoreCivic Inc and GEO Group Inc, which have a combined market capitalisation of US$3.78 billion.

In a research report published last month, DBS Bank notes that Link REIT’s earnings will remain resilient across economic cycles as the bulk of rental income derived from tenants selling consumer staples in Hong Kong. The REIT’s suburban retail properties have been less affected disruptions due to the protest movement in the city compared with landmark shopping malls, making it a safer bet in a shaky market. The report says the REIT had distribution yields of 3.6% to 3.9% for FY2020/21, which translates into a yield spread of 1.8% to 2.1%.

However, AHAM’s Khoo warns that REITs, despite being perceived as a defensive asset class in a slowing economy, is not a tool to hedge against recession. It is not as defensive as government bonds, for example, because the REITs’ performance depends on their tenants’ ability to pay rent which, in proxy, depends on the state of the economy. A February 2019 report international tax and advisory firm Grant Thornton points out that populations in Asia-Pacific are ageing more rapidly than in other regions in history. The report adds that small healthcare operators in rural areas are being merged into large groups to create economies of scale.

Moving ahead, the high rate of vaccination and greater likelihood of border reopening should enable a greater flow of foreign tourists next year, possibly uplifting the company’s earnings. Vaccinated travel lanes and travel bubbles next year, growth for the sector should pick up in the 1H22. Looking ahead, we see continuous strong support for earnings given a visible pipeline of projects and pent-up demand when Asia reopens. There exists a strong correlation between local interest rates and the Fed policy rates, which ultimately fuels bank’s earnings through a potential expansion in the net interest margin.

Okay let’s get to the point, the year 2020 is a challenging year for all the business sectors, some are facing big losses because of the lockdown and restriction to travel. For my 2020 stock investment result of getting, I put it still acceptable, as the technology goes up, while the REITs are performing fairly and hospitality business were facing a challenging time. The stock investment shall be diversified if you wish to invest in the long term run.