OREANDA-NEWS. Growth stocks are typically associated with companies that increase in capital value rather than yield high income. Regionally, there are a number of indices of growth stocks that are constructed using such objective criteria.

The MSCI AC Asia Pacific ex-Japan Small Cap Growth Index comprises over 1,000 regional constituents and is based on the MSCI Global Investable Market Value and Growth Index Methodology. 

The MSCI AC Asia Pacific ex-Japan Small Cap Growth Index captures small-cap securities exhibiting overall growth style characteristics across four of five Developed Market countries (excluding Japan) and eight emerging markets countries in the Asia Pacific region.

Singapore Real Estate Stocks in the MSCI AC Asia Pacific ex-Japan Small Cap Growth Index

The 14 Singapore Real Estate stocks within the MSCI AC Asia Pacific ex-Japan Small Cap Growth Index represent almost 2% of the Index. With a combined market capitalisation of S$17.1 billion, these stocks currently trade at an average price-earnings (P/E) and price-to-book (P/B) ratio of 13.1 and 0.9 respectively. In the year thus far, these 14 stocks have averaged a 6.8% decline in total return. This takes their average three-year total return to 7.3%.

The SGX-listed Real Estate stocks in the Index are tabled below, and are sorted according to index weights. Note that clicking on the stock name will take you to the full company or trust profile in SGX StockFacts.

Source: SGX & SGX StockFacts (data as of 21 October 2015)

Source: SGX & SGX StockFacts (data as of 21 October 2015)

Among the 14 SGX-listed Real Estate stocks in the MSCI AC Asia Pacific ex-Japan Small Cap Growth Index, the five highest-yielding stocks are AIMS AMP Capital Industrial REIT, CDL Hospitality Trusts, Mapletree Logistics Trust, CapitaLand Retail China Trust and Frasers Commercial Trust. Additionally, among the 14 stocks, two are Healthcare trusts – Parkway Life REIT and First REIT. The two trusts represent 0.3% of the Index, and average a 6.7% year-to-date total return.

Parkway Life REIT

Parkway Life REIT invests primarily in the real estate properties and related assets in the Asia Pacific region. The company’s properties are used primarily for healthcare and/or healthcare-related purposes, including hospitals and healthcare facilities, as well as real estate and/or real estate assets used in connection with healthcare research, education, and the manufacture or storage of drugs, medicine, and other healthcare goods and devices. As at 30 June 2015, Parkway Life REIT's total portfolio size stands at 47 properties totaling approximately S$1.60 billion.

First REIT

First REIT is a REIT fund launched and managed by Bowsprit Capital Corporation Limited. It invests in the real estate markets of Asia including Indonesia, Singapore, China, Malaysia, Thailand, and Hong Kong. The fund seeks to invest in the diversified portfolio of real estate related assets operating healthcare and/or healthcare-related purposes. First REIT’s portfolio comprises 16 properties, of which 12 are located in Indonesia, three in Singapore and one in South Korea. The properties are collectively valued at over S$1 billion.