As noted in the SGX My Gateway Report yesterday, Singapore contributes 40 primary listings to the FTSE All-World Index. Among these stocks are six Real Estate Management & Development companies and five Real Estate Investment Trusts (REITs). Singapore’s secondary listing of Hongkong Land takes the number of relevant Real Estate plays within the FTSE All-World Index that are actively traded on Singapore Exchange (SGX) to 12.

Together,the 12 stocks have averaged a 2.4% total return in the year to date, which takes their average annualised total returns to 5.9% over the past 10 years. In comparison, the FTSE All World Index with over 3000 constituents, has declined 0.7% in the year to date, taking its 10-year annualised 10-year return to 3.5% in SGD terms.

Real Estate plays make up a comparatively large part of Singapore’s stocks that are within the FTSE All World Index benchmark. While one in 17 stocks of the FTSE All-World Index represent the Real Estate Sector, approximately one in four of the relevant  Singapore constituents represent the Real Estate Sector.

This also means that of the 175 Real Estate stocks included in the FTSE All-World Index, 12 can be traded in Singapore. The 12 stocks are detailed in the table below. To see the full stock profile in SGX StockFacts, please click on the stock name.

Source: SGX, Bloomberg & SGX StockFacts (data as of 30 May 2016)

As detailed in the table above, the performance of the Real Estate Management & Development plays was mixed, while all five REITs generated gains in the year thus far. The 12 stocks averaged a Return on Equity ratio (ROE) of 7.2% and an average indicative dividend yield of 3.8%. Due to land banking in addition to development risks, global real estate developers maintain lower price-to-book ratios compared to REITs.

Relevant Real Estate Management & Development Stocks  SGX Code Indicative Div Yield % Return on Equity P/E P/B
CAPITALAND  C31 3.0 6.4 11.4 0.7
GLOBAL LOGISTIC PROPERTIES  MC0 3.3 8.4 9.5 0.8
CITY DEVELOPMENTS  C09 1.0 8.5 10.3 0.9
UOL GROUP  U14 2.6 5.0 11.6 0.6
YANLORD LAND GROUP  Z25 1.2 8.6 6.7 0.6
WING TAI HOLDINGS  W05 1.7 3.9 11.1 0.4
HONGKONG LAND HOLDINGS LTD H78 3.1 7.2 7.2 0.5
Average   2.3 6.9 9.7 0.6
Relevant REIT SGX Code Indicative Div Yield % Return on Equity P/E P/B
CAPITALAND MALL TRUST C38U 5.3 9.1 12.3 1.1
ASCENDAS REAL ESTATE INV TRT A17U 6.5 6.8 16.2 1.1
CAPITALAND COMMERCIAL TRUST C61U 6.1 6.5 12.7 0.8
SUNTEC REIT T82U 5.7 6.3 12.3 0.8
FRASERS CENTREPOINT TRUST J69U 6.1 9.4 11.2 1.0
Average   5.9 7.6 12.9 1.0

Source: SGX, Thomson Reuters, Bloomberg & SGX StockFacts (data as of 30 May 2016)

While the seven relevant Real Estate Management & Development stocks on the FTSE All-World Index have averaged a 1.9% decline in total return in the year thus far, the broader group of the 20 largest capitalised Real Estate Management & Development stocks listed on SGX have averaged a 1.2% total return. Among the group of 20 stocks were 11 gainers and nine decliners.

The median ROE of the 20 stocks is 8.3%, with a median P/E ratio of 9.9 and a median P/B ratio of 0.7.  The full list of stocks is detailed in the table below. Click on the stock name below to see the full profile in SGX StockFacts.

Source: SGX, Thomson Reuters, Bloomberg & SGX StockFacts (data as of 30 May 2016).