OREANDA-NEWS. The price-earnings (PE) ratio measures the market value of a stock relative to its earnings and is calculated by dividing the traded price per share by its earnings per share (EPS). This ratio, often known as a price or earnings multiple, helps investors assess how much they should pay for a stock based on its current and future earnings.

PE ratios for the 10 trusts range from as cheap as 3.0 times for OUE Commercial REIT and 3.9 times for Fortune REIT to 10.6 times for Mapletree Logistics Trust and 10.7 times for Viva Industrial Trust. This compares with approximately 12 times for the broader FTSE ST Real Estate Investment Trust Index and about 15.5 times for the Straits Times Index.

The trusts that generated the highest total returns in the year thus far include Mapletree Commercial (+17.2%), Mapletree Greater China Commercial (+11.6%), Mapletree Industrial Trust (+8.6%), Fortune Real Estate Investment Trust (7.9%) and Mapletree Logistics Trust (6.6%). This compares with a 6.1% total return YTD for the FTSE ST Real Estate Investment Trust Index.

The stocks with the highest dividend yields include Viva Industrial Trust, with a yield of 8.4%, Saizen REIT with 7.4%, OUE Commercial REIT with 7.1%, Mapletree Industrial at 6.7%, and Mapletree Logistics at 6.1%.

The table below ranks the 10 trusts by PE multiples (from cheapest to most expensive in valuation terms).

Company Name SGX Code Mkt Cap S\$M PE Ratio % Price Change YTD % Change - Div. Adj. YTD % Change - Div. Adj. [1 Year] % Div. Yield
OUE Commercial Real Estate Investment Trust TS0U 702 3.0 0.0 3.5 8.7 7.1
Fortune Real Estate Investment Trust F25U 2,667 3.9 5.3 7.9 40.2 5.1
Mapletree Greater China Commercial Trust RW0U 2,876 7.9 11.6 11.6 32.1 5.9
Mapletree Industrial Trust ME8U 2,769 8.3 6.7 8.6 19.4 6.7
CapitaRetail China Trust AU8U 1,393 9.4 2.8 5.8 21.9 5.9
Mapletree Commercial Trust N2IU 3,443 9.6 15.6 17.2 37.4 4.8
Keppel REIT K71U 3,876 9.8 0.0 1.6 6.9 5.0
Saizen Real Estate Investment Trust T8JU 244 9.9 0.0 3.7 1.8 7.4
Mapletree Logistics Trust M44U 3,080 10.6 5.1 6.6 22.2 6.1
Viva Industrial Trust T8B 507 10.7 2.5 3.3 13.8 8.4
Average     8.3 5.0 7.0 20.4 6.2

Source: SGX StockFacts (Data as of 17 April 2015)

OUE Commercial Real Estate Investment Trust

OUE Commercial Real Estate Investment Trust invests in a portfolio of commercial real estate properties in financial and business hubs of Singapore and internationally. Its properties are primarily used for office and/or retail purposes. The company also invests in real estate-related assets. Its portfolio comprises 2 commercial properties located in Singapore and Shanghai with an aggregate gross floor area of approximately 105,296.1 square meters. OUE Commercial Real Estate Investment Trust was incorporated in 2013 and is based in Singapore.

OUE Commercial Real Estate Investment Trust has a market capitalisation of S\$702 million and the stock trades at a price-to-earnings ratio of 3.0. The five substantial shareholders are OUE, Tong, Jinquan, Phillip Securities Pte Ltd, Asset Management Arm, Thio, Gim Hock and Say, Kin Heng.

Fortune Real Estate Investment Trust

Fortune Real Estate Investment Trust, through its subsidiaries, engages in the ownership and investment of retail shopping malls in Hong Kong. As of December 31, 2008, it holds a portfolio of 11 retail malls and properties located in Hong Kong. Fortune Real Estate Investment Trust was founded in 2003 and is based in Singapore, Singapore.

Fortune Real Estate Investment Trust has a market capitalisation of S\$2.7 billion and the stock trades at a price-to-earnings ratio of 3.9. The five substantial shareholders are Cheung Kong (Holdings) Limited, Ballston Profits Limited, Schroder Investment Management Limited, Schroder Investment Management (Singapore) Ltd and Schroder Investment Management (Hong Kong) Limited.

Mapletree Greater China Commercial Trust

Mapletree Greater China Commercial Trust engages in the investment of various real estate properties for commercial purposes in the Greater China region. It invests in real estate properties for retail and/or office purposes, as well as other real estate-related assets. The company is based in Singapore.

Mapletree Greater China Commercial Trust has a market capitalisation of S\$2.9 billion and the stock trades at a price-to-earnings ratio of 7.9. The five substantial shareholders are Norges Bank Investment Management, CBRE Clarion Securities, BNY Mellon Asset Management, Columbia Wanger Asset Management, LLC and Kokusai Asset Management Co., Ltd..

Mapletree Industrial Trust

Mapletree Industrial Trust operates as a real estate investment trust in Singapore. As of August 31, 2010, it holds a portfolio of 70 properties, including business park buildings, flatted factories, stack-up/ramp-up buildings, light industrial buildings, and warehouse. The company was founded in 2008 and is based in Singapore.

Mapletree Industrial Trust has a market capitalisation of S\$2.8 billion and the stock trades at a price-to-earnings ratio of 8.3. The five substantial shareholders are Temasek Holdings (Private) Limited, Schroder Investment Management Limited, American International Group, Inc., Insurance Investments, BNY Mellon Asset Management and JPMorgan Asset Management Holdings Inc..

CapitaRetail China Trust
           
CapitaRetail China Trust operates as a real estate investment trust in Singapore. It invests in a portfolio of retail real estate properties located primarily in the People’s Republic of China, Hong Kong, and Macau. The company’s portfolio include eight shopping malls located in Beijing; Shanghai; Zhengzhou, Henan Province; Huhhot, Inner Mongolia; and Wuhu, Anhui Province. CapitaRetail China Trust was formed on October 23, 2006 and is based in Singapore.

CapitaRetail China Trust has a market capitalisation of S\$1.4 billion and the stock trades at a price-to-earnings ratio of 9.4. The five substantial shareholders are CapitaLand, HSBC Global Asset Management (UK), Matthews International Capital Management, LLC, American International Group, Inc., Insurance Investments and Capital Research and Management Company.

Mapletree Commercial Trust

Mapletree Commercial Trust was formed on August 25, 2005 and is based in Singapore. Mapletree Commercial Trust is a Singapore-focused REIT established with the principal investment objective of investing on a long-term basis, directly or indirectly, in a diversified portfolio of income-producing real estate used primarily for office and/or retail purposes, whether wholly or partially, as well as real estate-related assets.

Mapletree Commercial Trust has a market capitalisation of S\$3.4 billion and the stock trades at a price-to-earnings ratio of 9.6. The five substantial shareholders are The HarbourFront Pte Ltd., HarbourFront Place Pte. Ltd., Schroder Investment Management Limited, Nomura Asset Management Co., Ltd. and American International Group, Inc., Insurance Investments.

Keppel REIT

Keppel REIT is a real estate investment trust launched by and managed by Keppel REIT Management. The fund invests in the real estate markets of the Singapore and across Asia. It primarily makes investments in commercial properties. The fund was formerly known as K-REIT Asia. Keppel REIT was formed on April 28, 2006 and is domiciled in the Singapore.

Keppel REIT has a market capitalisation of S\$3.9 billion and the stock trades at a price-to-earnings ratio of 9.8. The five substantial shareholders are Keppel REIT Investment Pte. Ltd., BNY Mellon Asset Management, DBS Group Holdings, Asset Management Arm, Prudential Investment Management, Inc. and State Street Global Advisors, Inc..

Saizen Real Estate Investment Trust

Saizen Real Estate Investment Trust is a real estate investment trust launched by Japan Regional Assets Manager Limited. The fund is managed by Japan Residential Assets Manager Limited. The fund invests in residential properties of Japan. It primarily invests in real estate primarily for residential and residential-related purposes, and real estate-related assets. Saizen Real Estate Investment Trust was formed on 27 September 2007 and is domiciled in Singapore.

Saizen Real Estate Investment Trust has a market capitalisation of S\$244 million and the stock trades at a price-to-earnings ratio of 9.9. The five substantial shareholders are Argyle Street Management Limited, Yeh, V-Nee, Morgan Stanley, Investment Banking and Brokerage Investments, Wong, Jeon Kin and KIM Eng Holdings Ltd., Asset Management Arm.

Mapletree Logistics Trust

Mapletree Logistics Trust, together with its subsidiaries, operates as a logistics real estate investment trust primarily in Singapore. It invests in a portfolio of logistics real estate and real-estate-related assets. The company’s properties include oil and chemical logistics, free trade and non-free trade zone third party logistics, food and cold storage, distribution centre, and industrial warehousing. As of December 31, 2007, its portfolio consisted of 70 properties in Singapore, Hong Kong, China, Malaysia, and Japan. The company was founded in 2004 and is headquartered in Singapore, Singapore.

Mapletree Logistics Trust has a market capitalisation of S\$3.1 billion and the stock trades at a price-to-earnings ratio of 10.6. The five substantial shareholders are BNY Mellon Asset Management, Lord, Abbett & Co. LLC, Columbia Wanger Asset Management, LLC, Norges Bank Investment Management and State Street Global Advisors, Inc..

Viva Industrial Trust

Viva Industrial Trust is a Singapore-focused business park and industrial trust which comprises Viva Industrial Real Estate Investment Trust and Viva Industrial Business Trust. VIT focuses in a diversified portfolio of income-producing real estate that is predominantly for business parks and other industrial purposes in Singapore and elsewhere in the Asia Pacific region. Viva Industrial Trust was formed in October 2013, and is domiciled in Singapore.

Viva Industrial Trust has a market capitalisation of S\$507 million and the stock trades at a price-to-earnings ratio of 10.7. The five substantial shareholders are Tong, Jinquan, CIMB Group Holdings Berhad, Asset Management Arm, Ho Lee Group Pte. Ltd, China Resources National Corporation and United Engineers.