OREANDA-NEWS. October 14, 2015. The Straits Times Index (STI) is made up of 30 blue chip stocks that account for more than half of the market capitalisation of Singapore’s stock market. FTSE Russell also published the five highest ranking non-constituents of the STI at the time of the quarterly reviews. The Reserve List will be used in the event that one or more constituents are deleted during the period leading up to the next quarterly review.

Completing the STI Reserve list are CapitaLand Commercial Trust, Suntec REIT, Singapore Post, Keppel REIT and M1. These stocks have a combined market capitalisation of S\\$17.9 billion which means an average size of S\\$3.6 billion for the five stocks. In terms of turnover velocity – the most active of the five stocks are CapitaLand Commercial Trust and Suntec REIT. Turnover velocity compares the total traded value of a stock to its market capitalisation over a period of time, where the total traded value is a multiplication of the price and volume of each trade.

Name

1Q Velocity

2Q Velocity

3Q Velocity
CapitaLand Commercial Trust

86.7%

84.3%

89.8%
Suntec REIT

76.8%

70.3%

60.3%
Singapore Post

67.0%

53.6%

52.7%
Keppel REIT

43.2%

47.3%

38.5%
M1

29.8%

57.2%

34.6%
Average

60.7%

62.5%

55.2%

Recent Performance

These five current STI Reserve List stocks trade at average P/E and P/BV ratios of 14.6 and 2.4, and maintain an average dividend yield of 5.8%. Over the past 12 months, the five stocks have averaged a 7.1% total return decline following much stronger performances in the previous two years. Over the past three years the average total returns for the five stocks was 29.0%. These stocks are tabled below and please note that clicking on a stock name will take you to its relevant page on StockFacts.

Name SGX Code Mkt. Cap. in S\\$ mm % Price Change YTD % Change - Dividend Adj. YTD % Change - Dividend Adj. 1 YR % Change - Dividend Adj. 3 YR
CapitaLand Commercial Trust C61U 4,128 -20.2 -15.9 -6.9 9.3
Suntec REIT T82U 4,080 -17.1 -13.7 -3.1 25.3
Singapore Post S08 3,881 -6.0 -3.0 0.5 81.6
Keppel REIT K71U 3,155 -18.9 -16.3 -13.6 -0.3
M1 B2F 2,727 -19.4 -15.0 -12.6 29.2
Average     -16.3 -12.8 -7.1 29.0

Source: SGX StockFacts (Data as of 12 October 2015)

Name SGX Code Price vs. 12M High in % Price vs. 12M Low in % P/E P/B Div. Ind Yld. in % 6M VWAP
CapitaLand Commercial Trust C61U -27.7 14.3 10.5 0.8 6.1 SGD 1.49
Suntec REIT T82U -19.2 14.0 12.8 0.8 5.9 SGD 1.698
Singapore Post S08 -16.4 7.4 26.1 2.6 3.6 SGD 1.867
Keppel REIT K71U -21.1 9.4 8.2 0.7 6.9 SGD 1.112
M1 B2F -27.1 3.9 15.2 7.0 6.5 SGD 3.29
Average   -22.3 9.8 14.6 2.4 5.8  

Source: SGX StockFacts (Data as of 12 October 2015), note six month VWAP as of 12 October 2015

Capitaland Commercial Trust

Capitaland Commercial Trust, a unit trust, invests in real estate and real estate-related assets, which are primarily used for commercial purposes in Singapore. Its portfolio primarily consists of office buildings and transport facilities. The REIT was listed on SGX in May 2004 and is one of the largest commercial REITs by market capitalisation listed on SGX.

According to its website, Capitaland Commercial Trust’s portfolio comprises:

§  Capital Tower, a Grade A office tower

§  Six Battery Road, a Grade A office tower

§  One George Street, a Grade A office tower

§  Raffles City (60% interest via the RCS Trust), a mixed-use development with an office tower, a shopping mall and two hotels and a convention centre

§  CapitaGreen (40% interest in development via the MSO Trust), a Grade A office tower which obtained Temporary Occupation Permit on 18 December 2014

§  Twenty Anson, a prime office building

§  HSBC Building, a prime office building on lease back to HSBC

§  Wilkie Edge, a mixed use development with office and ancillary retail units

§  Bugis Village, shop houses for office and retail use

§  Golden Shoe Car Park, a car park with over 1,000 lots and retail shops on the ground floor

§  11 other commercial properties in Malaysia (17.7% interest via the MRCB-Quill REIT)

According to SGX StockFacts, units in Capitaland Commercial Trust trade at a Price/Earnings ratio of 10.5 with Price/Book Value of 0.8 and a dividend yield of 6.1%.

Suntec REIT

Suntec REIT was formed in November 2004, and is a REIT launched and managed by the ARA Trust Management (Suntec) Limited. The fund invests in real estate and real estate-related assets that are primarily used for retail or office purposes.

According to its website, Suntec REIT’s portfolio comprises:

§  Commercial properties in Suntec City

§  Park Mall

§  One-third interest in One Raffles Quay,

§  One-third interest in Marina Bay Financial Centre Towers 1 and 2 and the Marina Bay Link Mall.

§  A 60.8% interest in Suntec Singapore Convention & Exhibition Centre

§  100.0% interest in a commercial building located at 177 Pacific Highway, North Sydney Australia, expected to be completed in early 2016.

Suntec REIT’s office portfolio leases are diversified across 14 business sectors. According to SGX StockFacts, units in Suntec REIT trade at a Price/Earnings ratio of 12.8 with Price/Book Value of 0.8, and a dividend yield of 5.9%.

Singapore Post

Singapore Post Limited was listed on the Singapore Exchange in 2003, and operates and provides postal, logistics, and retail services in Singapore and internationally. The company operates through three segments: Mail, Logistics, and Retail & eCommerce. The company also offers electronic printing and dispatching services; electronic platform and recyclable lockers for merchandise distribution; and customs brokerage services, as well as rents commercial properties.

According to SGX StockFacts, shares in Singapore Post trade at a Price/Earnings ratio of 26.1 with Price/Book Value of 2.6 and a dividend yield of 3.6%.

Keppel REIT

Keppel REIT was formed in April 2006, and is a REIT launched by and managed by Keppel REIT Management Limited. The fund invests in the real estate markets of the Singapore and across Asia. It primarily makes investments in commercial properties. As at 30 June 2015, approximately 88% of Keppel REIT's assets under management is based in Singapore and the remaining 12% is located in Australia.

According to its website, Keppel REIT’s portfolio comprises:

§  Bugis Junction Towers, a 15-storey Grade-A office tower above the Bugis MRT Interchange Station

§  Marina Bay Financial Centre, consisting of office Towers 1, 2 and 3 and a subterranean mall, Marina Bay Link Mall.

§  One Raffles Quay, comprising two Grade A office towers

§  Ocean Financial Centre, a Grade-A office development located at the Raffles Place and Marina Bay precincts

§  8 Chifley Square, a 30-storey premium grade office building located at the intersection of Hunter Street and Elizabeth Street in the CBD of Sydney, Australia.

§  77 King Street,  a freehold Grade-A commercial building located in the heart of Sydney's CBD.

§  8 Exhibition Street, a 35-storey premium freehold commercial building located in the prime CBD of Melbourne, Australia.

§  275 George Street, a freehold Grade-A office building located in the George Street precinct in Brisbane, Australia.

§  Office tower on the Old Treasury Building site is a 35-storey Grade A building that is located in the Perth CBD. The new office tower is currently under construction and is expected to be completed in the second half of 2015.

According to SGX StockFacts, units in Keppel REIT trade at a Price/Earnings ratio of 8.2 with Price/Book Value of 0.7 and a dividend yield of 6.9%.

M1

M1 provides mobile and fixed communications services in Singapore. It offers various voice, data, and value-added postpaid and prepaid mobile services on 4G/long term evolution advanced, 3G/high speed packet access, and 2G mobile networks; and wireless broadband services.

The company also provides international call services, such as mobile and fixed-line customers international direct dial services; international calling card services; and trades wholesale voice minutes to other international and local service providers, as well as offers dark fiber services to carriers and data centers. In addition, it offers various broadband service plans, including fixed voice and other value-added services for residential homes; and a suite of mobile and fixed services, including connectivity solutions, managed services, cloud solutions, data center services, and other enterprise solutions for corporate customers.

According to SGX StockFacts, shares in M1 trade at a Price/Earnings ratio of 15.2 with Price/Book Value of 7.0, and a dividend yield of 6.5%.