During the first four weeks of October, the Straits Times Index (STI) ended essentially flat with a marginal decline of -0.09%. Over the same timeframe the Dow Jones Industrial Average declined -2.46% or -2.96% in Singapore Dollar terms. The FTSE ST All Share Index which also includes a number of Trusts in its 161 constituents also ended essentially flat with a marginal gain of +0.19% over the first four weeks of October. The total return of the FTSE ST All Share Index, which includes dividend yield, over the period was +0.27%.
On a total return basis, the three largest Business Trusts (BTs) and Real Estate Investment Trusts (REITs), in terms of market capitalisation listed on SGX, have outperformed the STI & FTSE ST All Share Index in the month-to-date.
The five largest BTs listed on SGX that maintain an indicative distribution yield are:
- Hutchison Port Holdings Trust (USD) [NS8U], which gained +8.28% in the month-the-date. The market capitalisation of the Trust is approximately S$8.2 billion and indicative dividend yield currently 8.06%. HPHT Trust also has a SGD counter. The investor relations page can be found (Here).
- Ascendas India Trust [CY6U], which declined -1.31% in price in the month-the-date, however a dividend distribution boosted the total return of the Trust to +1.88% over the first four weeks of October. The market capitalisation of the trust is approximately S$688 million and indicative dividend yield currently 6.62%. The investor relations page can be found (Here).
- CitySpring Infrastructure Trust [A7RU] gained +3.45% in the month-the-date. The market capitalisation of the Trust is approximately S$675 million and indicative dividend yield currently 7.37%. The investor relations page can be found (Here).
- K-Green Trust [LH4U] which declined -0.49% in the month-to-date. The market capitalisation of the Trust is approximately S$639 million and indicative dividend yield currently 6.17%. The investor relations page can be found (Here).
- Perennial China Retail Trust [N9LU] which declined -1.01% in the month-to-date. The market capitalisation of the Trust is approximately S$557 million and indicative dividend yield currently 7.68%. The investor relations page can be found (Here).
The five largest REITs listed on SGX are:
- CapitaMall Trust [C38U], which gained +7.92% in the month-to-date, with dividend distributions boosting the total return to +9.12%. The market capitalisation of the REIT is approximately S$7.3 billion and indicative dividend yield currently 4.44%. The investor relations page can be found (Here).
- Ascendas REIT [A17U], which gained +2.49% in the month-to-date, with dividend distributions boosting the total return to +3.98%. The market capitalisation of the REIT is approximately S$5.5 billion and indicative dividend yield currently 5.72%. The investor relations page can be found (Here)
- CapitaCommercial Trust [C61U], which gained +5.69% in the month-to-date. The market capitalisation of the REIT is approximately S$4.5 billion and indicative dividend yield currently 5.01%. The investor relations page can be found (Here)
- Suntec REIT [T82U], which gained +7.74% in the month-to-date. The market capitalisation of the REIT is approximately S$3.6 billion and indicative dividend yield currently 5.88%. The investor relations page can be found (Here)
- Keppel REIT [K71U], which gained +2.95% in the month-to-date, with dividend distributions boosting the total return to +4.60%. The market capitalisation of the REIT is approximately S$3.2 billion and indicative dividend yield currently 6.43%. The investor relations page can be found (Here)
These two types of trusts have different structures and legislative requirements. REITs are governed by the Code on Collective Investment Scheme while Business Trust legislation is governed by the Business Trust Act. One commonality of the two types of trusts is the trust objective of investing in assets that generate a pool of income to distribute to investors in the form of a yield (akin to dividend yield). In the REIT case, the Trust invests in property-related assets. In the BT case, the Trust might invest in property, infrastructure, utilities or shipping-related assets. Note not all business trusts maintain an indicative dividend yield. More information on Trusts can be found in the Market Update section on My Gateway [click here].
Source: SGX My Gateway
