SGX Presents Recent Performances of Singapore Industrial REITs
OREANDA-NEWS. December 18, 2015. SGX lists seven Industrial REITs with a combined market capitalisation of S\\$13.4 billion, as categorised by the Global Industry Classification Standard (GICS®). This sub-industry consists of trusts engaged in the acquisition, management and operation of industrial properties, including companies operating industrial warehouses and distribution properties.
Globally, there are 51 primary-listed Industrial REITs categorised under GICS, across 13 countries. The 51 Industrial REITs have a combined market capitalisation of S\\$110.8 billion which account for 5.4% of the combined market capitalisation of all REITs worldwide. Furthermore, the 51 Industrial REITs generated average and median year-to-date total returns of 0.5% and 2.3% respectively. The largest Singapore Industrial REIT, Ascendas REIT, is in the five largest capitalised Industrial REITs globally.
On 10 December 2015, Ascendas REIT announced plans to raise at least S\\$408 million to fund asset acquisitions. Approximately S\\$224.7 million of the proceeds will be used to help pay for the planned S\\$420 million acquisition of One@Changi City; another S\\$82 million will be used to partially fund a potential acquisition of a logistics property in Australia; about S\\$98.8 million will be used to repay debt and fund future acquisitions; and the remaining S\\$2.8 million will be used for fees and expenses. For more information on the announcement, please click here.
In the year thus far, the seven Industrial REITs have averaged a negative 7.2% total return, which brought their three-year return to 6.7%. These REITs currently maintain a dividend yield of 8.4%.
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