NikkoAM-StraitsTrading Asia ex Japan REIT ETF IPO!

Another REIT ETF is coming to Singapore!

A short summary on this NikkoAM-StraitsTrading Asia ex Japan REIT ETF.

  • Annual Distribution = 5%
  • Listing Date: Mar 29, 2017
  • Manager: Nikko Asset Management Asia Ltd
  • Trustee: HSBC Instituitional Trust Services (Singapore) Ltd
  • SGX Trading Name: NikkoAM-STC Asia REIT
  • NikkoAM-StraitsTrading Asia ex Japan REIT ETF IPO Prospectus
  • Investment Objective: To replicate as closely as possible, before expenses, the performance of the FTSE EPRA/
    NAREIT Asia ex Japan Net Total Return REIT Index.
  • Initial Offering Period: Mar 6, 2017 to Mar 21, 2017

Diversification – Countries & Sectors

Underlying Assets

Not revealed in the prospectus.

Extract from FTSE EPRA/NAREIT Asia ex Japan REITs Index Fact Sheet.


See other Singapore REITs here.  > REITs > Singapore REITs Table




Singapore REIT Fundamental Analysis Comparison Table – 5 February 2017

FTSE ST Real Estate Investment Trusts (FTSE ST REIT Index) increases from 709.49 to 732.7 (+3.19%) compare to last post on Singapore REIT Fundamental Comparison Table on Jan 2, 2017. The index is still trading below the 200D SMA after the recent rebound. FTSE ST Real Estate Investment Trust Index is currently trading within a Rectangle and expected to move within the range between 740 and 700.  SGX S-REIT (REIT.SI) Index increases from 1092.36 to 1127.74 (+3.24%).

  • Added EC World REIT into the table.
  • Price/NAV increases from  0.942 to 0.962 (Singapore Overall REIT sector is slightly under value now).
  • Distribution Yield decreases from 7.32% to 7.13% (take note that this is lagging number). More than half of Singapore REITs (23 out of 40) have Distribution Yield > 7%. High yield REITs mainly from Hospitality Trust and small cap Industrial REIT, but we must understand the risks while chasing for the high yield. Check out How to spot those Fundamentally strong REIT with attractive yield to build up a Passive Income Portfolio?
  • Gearing Ratio decreases from 35.11% to 34.87%.  22 out of 40 have Gearing Ratio more than 35%.
  • Most overvalue is Ascendas iTrust (Price/NAV = 1.535), followed by Parkway Life (Price/NAV = 1.441), FIRST REIT (Price/NAV = 1.282) and Keppel DC REIT (Price/NAV = 1.28)
  • Most undervalue (base on NAV) is Sabana REIT (Price/NAV = 0.574), followed by Far East HTrust (Price/NAV = 0.64) and Fortune REIT (Price/NAV = 0.698).
  • Highest Distribution Yield is SoilBuild BizREIT (9.89%), followed by Cache Logistic Trust (9.25%) and Viva Industrial Trust (9.09%). All these 3 are small Cap Industrial REITs.
  • Highest Gearing Ratio is Croesus Retail Trust (45.3%), iREIT Global (42.5%), Sabana REIT (43.2%) and Cache Logistic Trust (43.1%).


Disclaimer: The above table is best used for “screening and shortlisting only”. It is NOT for investing (Buy / Sell) decision. To learn how to use the table and make investing decision, Sign up next REIT Investing Seminar here to learn how to choose a fundamentally strong REIT for long term investing for passive income generation.


  • Singapore Interest Rate increases from 0.06% to 0.46%.
  • Take note of the past historical interest rate and how high the rate can go. This is an important factor to keep a close eye for Singapore REIT investing because REIT leverages on debt to generate DPU. Current Singapore interest rate is abnormally low and will not stay low forever.

  • 1 month decreases from 0.71638% to 0.71463%
  • 3 month decreases from  0.96271% to 0.96188%
  • 6 month decreases from  1.25050% to 1.24700%
  • 12 month increases from 1.43317% to 1.43517%

The Singapore Manufacturing PMI increased to 51 in January of 2017 from 50.6 in the previous month. The reading pointed to the strongest expansion in the factory activity since November 2014, led by increases in new orders, new exports, industrial output and inventory holding. Employment reverted to a marginal increase after recording contractions since November 2014. Also, the PMI for electronics sector rose to 51.8 from 51.2 in December. Manufacturing PMI in Singapore averaged 50.03 from 2012 until 2016, reaching an all time high of 51.90 in October of 2014 and a record low of 48.30 in October of 2012.

 Singapore’s economy grew a seasonally adjusted annualized 9.1 percent on quarter in the three months to December of 2016, following a downwardly revised 1.9 percent contraction in the previous period and beating market expectations of a 3.7 percent expansion, the preliminary estimate showed. It was the strongest growth rate since the second quarter of 2013, mainly due to a rebound in manufacturing (+14.6 percent from -8.1 percent in Q3) and services (+9.4 percent from -0.4 percent) while construction continued to fall (-4.7 percent from -14.8 percent). GDP Growth Rate in Singapore averaged 6.84 percent from 1975 until 2016, reaching an all time high of 37.20 percent in the first quarter of 2010 and a record low of -13.50 percent in the fourth quarter of 2008.

Singapore REITs sector is currently range bound and FTSE ST REIT index is expected to trade within a range between 700 to 740. 700 support level could be a good level to accumulate some fundamental strong REITs as the valuation base on Price/NAV and Distribution yield can become attractive again.  Two questions may interest all the retail investors: WHEN is the right and safe time and WHAT REIT to pick? Check out the next Investing in Singapore REIT course here.

See my Singapore REIT 2017 Market Outlook here.

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Singapore REIT Stock Shortlisting Bubble Charts January 2017

Bubble chart derived from January 2, 2017 Singapore REITs Fundamental Comparison Table. From the charts, it can be seen that there are closing yield spread between big cap and small cap REITs; and more REITs Price/NAV valuation becomes more attractive now (Bubbles shift to the left). This makes the under value big cap REIT with higher distribution yield attractive!

Sabana REIT is the out-liar after the recent sell off due to right issue.

These Bubble Charts are used to show the “relative” position compare to other Singapore REITs.

Two visual bubble charts to pick and avoid:

  1. Undervalue Singapore REITs with High Distribution Yield** (Value Pick)
  2. Overvalue Singapore REITs with High Gearing Ratio (Risk Avoidance)


** Distribution Yield are lagging.

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Disclaimer: The analysis is for Author own use and NOT to be used as Buy / Sell recommendation. Get a proper training on “How to use this Singapore REIT Bubble Charts?” here.


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