OREANDA-NEWS. September 17, 2015. Business Trusts offer investors a new way to invest in cash-generating assets, including infrastructure, real estate and transportation assets. Business Trusts are business enterprises set up as trusts, instead of companies. They are hybrid structures with elements of both companies and trusts. Like a company, a business trust operates and runs a business enterprise. But unlike a company, a business trust is not a separate legal entity. It is created by a trust deed under which the trustee has legal ownership of the trust assets and manages the assets in the best interest of the beneficiaries of the trust.

Singapore Business Trust structure

Business Trusts are funded by unitholders and lenders, who are entitled to periodic distributions and interest payments respectively. The single responsible entity for the trust is a Trustee Manager, who has a role similar to a REIT’s Asset Manager and Trustee combined. The Trustee Manager provides management and trustee services, and receives a fee in the process.

Singapore Exchange (SGX) lists 10 business trusts with assets located across Asia and Europe.

These 10 business trusts have a combined market capitalisation of S\\$13.0 billion and trade at an average price-earnings ratio of 14.1. In the year thus far, they have generated a negative total return of 2.5% and average a 8.3% indicative dividend yield.

Over the past 12 months, the 10 business trusts have averaged a 1.8% dividend-inclusive decline. As of 15 September 2015, the three trusts trading closest to their 12-month lows were Asian Pay Television Trust, Accordia Golf Trust and Croesus Retail Trust. The three trusts trading furthest from their 12-month lows were First Ship Lease Trust, Indiabulls Properties Investment Trust and Keppel Infrastructure Trust. Note that in August this year, Indiabulls Properties Investment Trust completed a share consolidation offer of 1 unit for every 5 units.

The table below is sorted based on market capitalisation. Note that clicking on a trust name will take you to its relevant page on SGX StockFacts.