OREANDA-NEWS. In the first five sessions of 2015, the STI declined 0.6%, while the broader region as gauged through the MSCI AC Asia Pacific Index declined 1.0%. Meanwhile, the eight Retail Real Estate Investment Trust (REITs) listed on SGX have averaged a 1.0% gain.

Performances within the eight REITS varied from a gain of 3.5% for Mapletree Commercial Trust to a decline of 0.5% for CapitaMall Trust in the year thus far. In total there were seven gainers amongst the eight Retail REITs over these first five sessions of the year. This followed on from their average total return of 16.4% last year.

Please note that the Retail REIT categorisation is based on the Global Industry Classification Standard (GICS). Hence the group does not include the otherwise categorised Diversified REITs which also invest in retail-related properties. The retail REIT) sector includes companies or trusts engaged in the acquisition, development, ownership, leasing, management and operation of shopping malls, outlet malls, neighbourhood and community shopping centres. There are a total of 32 such categorised Retail REIT listings across Asia Pacific which have averaged a 0.6% price gain in the year thus far.

The eight Retail REITs listed on SGX have a combined market capitalisation of S\$21.0 billion and the detailed in the table below.

Name SGX Code Market Cap S\$B Px Chg Pct YTD % Expected Reporting Date Total Return 2014 % Dvd Ind Yld %
CAPITAMALL TRUST C38U 7.0 -0.5

01/22/2015

 13.1 5.3
MAPLETREE COMMERCIAL TRUST N2IU 3.1 3.5

01/22/2015

 25.7 5.4
SPH REIT SK6U 2.6 0.0

01/12/2015

 12.5 5.3
FORTUNE REIT F25U 2.5 1.5

01/23/2015

 38.5 5.3
FRASERS CENTREPOINT TRUST J69U 1.8 1.8

01/21/2015

 14.4 5.8
STARHILL GLOBAL REIT P40U 1.7 0.6

01/23/2015

 8.4 6.3
CAPITARETAIL CHINA TRUST AU8U 1.4 1.5

01/29/2015

 29.4 6.0
LIPPO MALLS INDONESIA RETAIL D5IU 0.9 0.0

02/13/2015

 -11.1 6.4

Source: Bloomberg (Data as of 8 January 2015)

The three largest capitalised REITs are CapitaMall Trust, Mapletree Commercial Trust and SPH REIT, with a combined market capitalisation of S\$12.7 billion – more than half of the combined market capitalisation of retail REITS on SGX.

CapitaMall Trust

CapitaMall Trust owns and invests in real estate assets for retail purposes in Singapore. The trust has 16 shopping malls in the suburban areas and downtown core areas of Singapore. The trust has a market capitalisation of S\$7.0 billion, which is the highest among the eight REITs and generated 2014 total return of 13.1%. On 17 October 2014, the trust reported that the distributable income of S\$93.7 million for the quarter from 1 July 2014 to 30 September 2014 was 5.6% higher than the S\$88.8 million for the same period last year. The trust went ex-dividend on 24 October 2014, distributing S\$0.0272 per share in dividends.

Mapletree Commercial Trust

Mapletree Commercial Trust invests in a portfolio of real estates for office or retail purposes. The trust portfolio comprises four properties located in Singapore’s Alexandra Precinct, HarbourFront Precinct and Central Business District. The trust has a market capitalisation of S\$3.1 billion and generated 2014 total return of 25.7%. On 24 October 2014, the trust reported income available for distribution increased 11.0% year-on-year for the quarter ended 30 September 2014, from S\$37.3 million to S\$41.4 million. The trust went ex-dividend on 30 October 2014, distributing S\$0.0197 per share in dividends.

SPH REIT

SPH REIT invests in real estates that is used primarily for retail purposes in Asia-Pacific region. SPH REIT has a market capitalisation of S\$2.6 billion and generated 2014 total return of 12.5%. On 13 October  2014, SPH REIT reported a total amount distributable to unit holders of S\$34.9 million for the quarter ended 31 August 2014. SPH REIT went ex-dividend on 17 October 2014, distributing S\$0.0139 per share in dividends.

Fortune REIT

Fortune REIT holds a portfolio of 17 retail malls and properties in Hong Kong. Fortune REIT has a market capitalisation of S\$2.5 billion and generated 2014 total return of 38.5%. On 11 November 2014, Fortune REIT reported income available for distribution increased 25.9% year-on-year for the quarter ended 30 September 2014 from HK\$153.3 million to HK\$193.1 million. Fortune REIT went ex-dividend on 7 August 2014, distributing HK\$0.2088 per share in dividends.

Frasers Centrepoint Trust

Frasers Centrepoint Trust is a retail REIT and currently owns a portfolio of six suburban retail malls in Singapore, which are located next to /near MRT stations and bus interchanges. The trust has a market capitalisation of S\$1.8 billion and generated 2014 total return of 14.4%. For its fourth quarter, the trust reported gross revenue increased 16.1% year-on-year to S\$46.7 million. The trust went ex-dividend on 30 October 2014, distributing S\$0.02785 per share in dividends.

Starhill Global REIT

Starhill Global REIT is a Singapore-based real estate investment trust investing primarily in real estate used for retail and office purposes, both in Singapore and overseas. Starhill Global REIT has a market capitalisation of S\$1.7 billion and generated 2014 total return of 8.4%. On 30 October 2014, Starhill Global REIT reported income to be distributed to unitholders increased 5.0% year-on-year for the quarter ended 30 September 2014, from S\$26.1 million to S\$27.3 million. Starhill Global REIT went ex-dividend on 5 November 2014, distributing S\$0.0127 per share in dividends.

CapitaRetail China Trust

CapitaRetail China Trust is a Singapore-based real estate investment trust established with the objective of investing on a long-term basis in a portfolio of income-producing real estate used primarily for retail purposes and located in China.

The trust has a market capitalisation of S\$1.4 billion and generated 2014 total return of 29.4%. On 24 October 2014, CapitaRetail China Trust reported distributable income increased 14.1% year-on-year for the quarter ended 30 September 2014, from S\$17.1 million to S\$19.5 million. The trust went ex-dividend on 6 August 2014, distributing S\$0.0499 per share in dividends.

Lippo Malls Indonesia Retail Trust

Lippo Malls Indonesia Retail Trust is a Singapore-based real estate investment trust with a portfolio of income producing retail and retail-related properties in Indonesia. The trust’s portfolio comprises 16 retail malls and seven major retail spaces located within other malls in Indonesia.

The trust has a market capitalisation of S\$0.9 billion and generated 2014 total return of -11.1%. On 12 November 2014, the trust reported distributable amount decreased 10.8% year-on-year for the quarter ended 30 September 2014, from S\$19.1 million to S\$17.1 million. The trust went ex-dividend on 12 December 2014, distributing S\$0.0055 per share in dividends.

Diversified REITs with retail-related assets

There are REITs with retail-related assets that are not classified as retail REITs according to GICS. These REITs are Mapletree Greater China Commercial Trust and Suntec REIT and are classified as diversified REIT by GICS.

Earnings Season

The Retail REIT reporting season will begin on Monday when SPH Reit Management Pte Ltd release SPH REIT's financial results for the first quarter ended 30 November 2014. CapitaMall Trust Management Limited have confirmed that they will report CapitaMall Trust’s financial results for the year ended 31 December 2014  before 8.00am Friday 23 January 2015.