This post takes a look at and compares the performances of 35 S-Reits, in terms of annualized return, over several time-frames of past years.
The return shall include capital appreciation and distributions. The distributions are, however, not re-invested.
Four groups of data with each covering a different time-frame are analysed. The time-frames for the groups are as follows:
- Group 1: Last 2 years (from 1 January 2014 to 31 December 2015)
- Group 2: Last 5 years (from 1 January 2011 to 31 December 2015)
- Group 3: Last 10 years (from 1 January 2006 to 31 December 2015)
- Group 4: The entire existence of the Reit (Since the Reit makes its debut on the SGX till 31 December 2015)
For the first 3 groups, only Reits that are listed before the respective start date are included in the corresponding group. The last group includes all 35 Reits, irrespective of the length of time the Reit has been listed.
The table below shows the annualized returns and capital gains or losses of the 35 Reits under the different groupings.
| Annualized Return (%) | Capital Gain / Loss ($) | ||||||||
| Since debut | Last 10 Years | Last 5 Years | Last 2 years | Since debut | Last 10 Years | Last 5 Years | Last 2 years | ||
| 1 | AIMSAMP Cap Reit | 1.1% | - | 11.0% | 7.5% | -0.510 | - | 0.278 | -0.003 |
| 2 | Ascendas Reit | 11.1% | 6.6% | 8.0% | 9.5% | 1.275 | 0.320 | 0.205 | 0.079 |
| 3 | Ascendas-hTrust | 1.4% | - | - | 8.4% | -0.140 | - | - | 0.020 |
| 4 | Ascendas-iTrust | -1.4% | - | 4.0% | 19.4% | -0.680 | - | -0.060 | 0.190 |
| 5 | Ascott Reit | 5.6% | - | 6.0% | 5.5% | 0.060 | - | 0.002 | -0.020 |
| 6 | Cache Log Trust | 6.7% | - | 6.9% | -0.7% | -0.045 | - | -0.055 | -0.205 |
| 7 | Cambridge Ind Tr | 5.1% | - | 9.0% | -1.9% | -0.087 | - | 0.046 | -0.125 |
| 8 | CapitaCom Trust | 8.3% | 7.7% | 3.2% | 2.4% | 0.465 | 0.315 | -0.150 | -0.100 |
| 9 | CapitaMall Trust | 9.4% | 7.2% | 4.6% | 6.2% | 0.944 | 0.437 | -0.020 | 0.025 |
| 10 | CapitaR China Tr | 2.4% | - | 9.5% | 12.6% | -0.310 | - | 0.250 | 0.160 |
| 11 | CDL HTrust | 10.3% | - | -2.1% | -3.2% | 0.445 | - | -0.755 | -0.315 |
| 12 | Croesus RTrust | -2.5% | - | - | 8.4% | -0.239 | - | - | -0.025 |
| 13 | Far East HTrust | -4.0% | - | - | -4.6% | -0.285 | - | - | -0.175 |
| 14 | First Reit | 13.0% | - | 17.4% | 13.4% | 0.587 | - | 0.495 | 0.140 |
| 15 | Fortune Reit HKD | 10.6% | 10.9% | 19.0% | 18.3% | 4.505 | 3.905 | 3.900 | 1.660 |
| 16 | Frasers Com Tr | 1.7% | - | 15.0% | 7.2% | -0.311 | - | 0.445 | 0.000 |
| 17 | Frasers Cpt Tr | 10.5% | - | 9.8% | 9.3% | 0.795 | - | 0.345 | 0.085 |
| 18 | HPH Trust USD | -4.3% | - | - | -0.5% | -0.420 | - | - | -0.145 |
| 19 | IREIT Global | -3.5% | - | - | - | -0.072 | - | - | - |
| 20 | Keppel DC Reit | 11.9% | - | - | - | 0.050 | - | - | - |
| 21 | Keppel Reit | 4.5% | - | 0.1% | -4.8% | -0.157 | - | -0.369 | -0.255 |
| 22 | Lippo Malls Tr | 2.8% | - | 2.8% | -4.8% | -0.175 | - | -0.100 | -0.095 |
| 23 | Mapletree Com Tr | 14.1% | - | - | 11.5% | 0.420 | - | - | 0.110 |
| 24 | Mapletree GCC Tr | 1.6% | - | - | 11.6% | -0.115 | - | - | 0.075 |
| 25 | Mapletree Ind Tr | 11.2% | - | 13.1% | 14.7% | 0.360 | - | 0.430 | 0.185 |
| 26 | Mapletree Log Tr | 6.2% | 5.7% | 6.8% | 3.9% | 0.105 | 0.035 | 0.025 | -0.065 |
| 27 | OUE Com Reit | 0.3% | - | - | - | -0.069 | - | - | - |
| 28 | OUE HTrust | 2.7% | - | - | 3.5% | -0.083 | - | - | -0.079 |
| 29 | ParkwayLife Reit | 12.2% | - | 11.7% | 4.6% | 1.140 | - | 0.680 | -0.020 |
| 30 | Religare HTrust | 13.2% | - | - | 22.0% | 0.190 | - | - | 0.225 |
| 31 | SoilbuildBizReit | 10.7% | - | - | 8.2% | 0.055 | - | - | 0.000 |
| 32 | SPHREIT | 3.4% | - | - | 4.5% | -0.030 | - | - | -0.025 |
| 33 | StarhillGbl Reit | 6.1% | 7.0% | 9.6% | 4.5% | 0.055 | 0.105 | 0.130 | -0.030 |
| 34 | Suntec Reit | 7.9% | 8.8% | 6.0% | 6.4% | 0.450 | 0.470 | 0.050 | 0.010 |
| 35 | Viva Ind Tr | 7.8% | - | - | 8.7% | -0.051 | - | - | -0.047 |
| Average |
5.7%
|
7.7%
|
8.2%
|
6.6%
| |||||
In the table above, some boxes are filled with a background colour. The various colours and the respective information they serve to highlight are as follows:
- sky blue - a return that is of at least 10%,
- rose - a negative return (when the capital loss more than offsets the distributions),
- dark brown - a capital loss and
- light yellow - the Reit has capital gains in all groups it is in
Group 1: Last 2 years
There are altogether 32 Reits in this group. 8 of them have delivered annualized returns that are more than 10% over the last 2 years. They are:
- Ascendas-iTrust (19.4%),
- CapitaR China Tr (12.6%),
- First Reit (13.4%),
- Fortune Reit HKD (18.3%),
- Mapletree Com Tr (11.5%),
- Mapletree GCC Tr (11.6%),
- Mapletree Ind Tr (14.7%) and
- Religare HTrust (22.0%).
Religare HTrust is the best-performing Reit and it is also the only Reit that has given an annualized return that is more than 20%.
7 of the Reits in this group have negative returns. They are
- Cache Log Trust (-0.7%),
- Cambridge Ind Tr (-1.9%),
- CDL HTrust (-3.2%),
- Far East HTrust (-4.6%),
- HPH Trust USD (-0.5%),
- Keppel Reit (-4.8%) and
- Lippo Malls Tr (-4.8%).
The average annualized return of all Reits in this group is 6.6%. This is less than the average annualized distribution yield for this group, which is 7.7%. It can be seen from the Total Capital Gain/Loss column that slightly more than half of the Reits in this group have incurred capital losses within this period of time. These capital losses have dragged the average annualized return to fall below the distribution yield.
Group 2: Last 5 years
There are a total of 21 Reits in this group. 6 of them have delivered annualized returns that are more than 10% over the last 5 years. They are:
- AIMSAMP Cap Reit (11.0%),
- First Reit (17.4%),
- Fortune Reit HKD (19.2%),
- Frasers Com Tr (15.0%),
- Mapletree Ind Tr (13.1%) and
- ParkwayLife Reit (11.7%).
Fortune Reit HKD has the highest return with 19.2%.
Only CDL HTrust (-2.1%) has registered a negative return.
The average annualized return of all Reits in this group is 8.2%. This is higher than the average annualized distribution yield of this group, which is about 6.7%. Two-third of the Reits in this group have registered capital gains within this period of time and this has lifted the average annualized return above the distribution yield.
Group 3: Last 10 years
There are a total of 7 Reits in this group.
Fortune Reit HKD (10.9%) has the highest annualized return and is the only Reit that has a return that is more than 10%.
No Reit in this group has registered a negative return.
The average annualized return of all Reits in this group is 7.7%. This is higher than the average annualized distribution yield of this group, which is about 6.0% as all Reits in this group have registered capital gains within this period of time.
Group 4: The entire existence of the REIT
This group includes all 35 S-Reits covered in this study.
Since making their debut on the SGX, 11 Reits have annualized returns that are above 10% while 5 of them have registered negative returns.
The average annualized return of all Reits in this group is 5.7%. This is lower than the average annualized distribution yield of this group, which is about 6.7%. 18 Reits, which is just more than half of the total, have registered capital losses since they are listed on the SGX causing the average return to fall below the distribution yield.
The poorer performers in this group are mostly Reits that are listed on the SGX relatively recently. There are 14 Reits that have been listed for less than 5 years. Of these, 9 of them have returns that are below the average, 4 of them negative returns and 10 of them incurred capital losses .
Across all time-frames
Looking at the data across the various different time-frames, it appears that there are more S-Reits that have not been doing well over the short term. Slightly more than half of the Reits have incurred capital losses over the short term and more than a handful of them have negative annualized returns.
In general, the Reits are found to have done better over the medium and long terms. The average annualized returns of Reits over both the medium and long terms are higher than that of the short term and there is only a total of 1 Reit that has a negative return in the medium and long terms combined.
And the top performers are ...
There are a number of Reits that have performed well throughout their entire history as well as over all the short (2 years), medium (5 years) and long (10 years) terms. Such Reits include Fortune Reit HKD, Ascendas Reit and Suntec Reit.
Fortune Reit HKD is the best performer among the 3, rewarding investors with more than 10% returns in all cases. Both Ascendas Reit and Suntec Reit may not have yielded as much returns as Fortune Reit HKD in all cases but they have also been able to consistently top up their distributions with capital gains.
If you have invested in any of these Reits 2, 5 or 10 years ago, or since they made their debut on the SGX, you should be now be enjoying healthy returns from your investments.
There are Reits that may not have a history of more than 10 years to be considered for long term performance but nonetheless they have sparkled in their medium and short term performances. These include First Reit, Mapletree Ind Tr and Frasers Cpt Tr.
There are Reits that may not have a history of more than 10 years to be considered for long term performance but nonetheless they have sparkled in their medium and short term performances. These include First Reit, Mapletree Ind Tr and Frasers Cpt Tr.
First Reit and Mapletree Ind Tr are the better performers among the 3, rewarding investors with more than 10% annualized returns.
There are Reits that have an even shorter history and are thus considered only for their short-term performance. The best performers in this category are Mapletree Com Tr and Religare HTrust.
A newcomer and potential good performer is Keppel DC Reit. This Reit is listed on the SGX for less than 2 years and thus is not considered for even a short term performance. However, its performance thus far has been impressive, registering an annualized return of 11.9%. Nevertheless, it still has yet to prove that it can be as impressive in a longer term.
No comments:
Post a Comment