OREANDA-NEWS. Introduced this month, the SGX Real Estate Index is a free-float, market capitalisation weighted index that measures the performance of the listed real estate sector in Singapore. Constituents in the index include real estate developers, real estate operators and real estate investment trusts. As of yesterday’s close, the 54 stocks were trading at average price-earnings (P/E) and price-to-book (P/B) ratios of 12.8 and 0.8 respectively, while maintaining a dividend yield of 5.9%.

Book value is made up of the stock’s tangible assets net of liabilities (such as debt), and expressed as a function of the shares outstanding. The price-to-book (P/B) ratio is used to compare a stock's market value to its book value. It is calculated by dividing the current closing price of the stock by the latest quarter's book value per share. The ratio is a common gauge used by investors to determine whether a firm may be undervalued or overvalued. The frequency of net asset valuations, additional capital raisings and unit prices are predominant drivers of the P/B ratio. As noted in the My Gateway Highlight, by comparison, the STI trades at a P/B ratio of 1.1.

Weightings of the SGX Real Estate Index components are capped at a maximum 10% at each semi-annual rebalance, so that it is better diversified across a range of stocks. Currently, the five largest stocks by index weight are CapitaLand, Hongkong Land Holdings, Global Logistic Properties, Ascendas REIT and CapitaLand Mall Trust.  Combined, these five companies make up almost 50% of the Index. Liquidity is also reviewed semi-annually, and is measured as a percentage of a company’s Daily Traded Value with respect to its Free-Float Market Capitalisation. 

The five best performers of the Index in the year thus far are Debao Property Development, IPC Corporation, Weiye Holdings, Ascendas India Trust and Mapletree Industrial Trust. These five averaged a year-to-date return of 79.4%, with the median return at 17.6%.

The 54 constituents of the SGX Real Estate Index are tabled below, and are sorted according to index weight. Clicking on a stock name will take you to its relevant page on StockFacts.

Name SGX Code Market Cap in S$mln Total Return YTD % Total Return: 3 Yrs % Dvd Yld % GICS® Sub Industry Name
CapitaLand C31 13,891 1.3 -4.3 2.8 Diversified Real Estate Activities
Hongkong Land Holdings H78 16,517* 6.5 8.2 2.7 Real Estate Operating Companies
Global Logistic Properties MC0 9,810 -14.4 -20.5 2.7 Real Estate Operating Companies
Ascendas REIT A17U 5,640 1.9 17.0 6.8 Industrial REITs
CapitaLand Mall Trust C38U 6,799 -0.8 4.9 6.2 Retail REITs
Suntec REIT T82U 3,883 -16.9 10.1 6.6 Diversified REITs
City Developments C09 6,956 -24.3 -37.8 1.0 Diversified Real Estate Activities
UOL Group U14 4,857 -10.7 11.0 2.5 Diversified Real Estate Activities
CapitaLand Commercial Trust C61U 3,927 -20.1 -6.5 6.5 Office REITs
Mapletree Industrial Trust ME8U 2,740 10.8 41.6 7.3 Industrial REITs
Keppel REIT K71U 3,007 -19.6 -13.1 7.3 Office REITs
Mapletree Greater China Commercial Trust RW0U 2,501 2.5 N/A 7.7 Diversified REITs
Mapletree Commercial Trust N2IU 2,715 -4.1 24.1 6.3 Retail REITs
Mapletree Logistics Trust M44U 2,471 -10.4 7.6 7.4 Industrial REITs
Ascott Residence Trust A68U 1,789 -3.2 9.1 7.0 Residential REITs
Starhill Global REIT P40U 1,625 -0.9 16.6 7.1 Retail REITs
Frasers Centrepoint Trust J69U 1,674 1.9 10.9 6.3 Retail REITs
CapitaLand Retail China Trust AU8U 1,240 -3.1 5.7 7.3 Retail REITs
CDL Hospitality Trusts J85 1,283 -20.4 -16.9 8.0 Hotel & Resort REITs
Frasers Commercial Trust ND8U 999 -4.1 21.9 7.6 Office REITs
Wing Tai Holdings W05 1,366 8.9 4.9 1.7 Real Estate Development
Parkway Life REIT C2PU 1,367 0.2 20.9 6.0 Health Care REITs
AIMS AMP Capital Industrial REIT O5RU 879 5.8 21.3 8.1 Industrial REITs
Ascendas India Trust CY6U 814 13.6 37.3 6.0 Real Estate Operating Companies
SPH REIT SK6U 2,394 -4.2 N/A 5.9 Retail REITs
Cache Logistics Trust K2LU 803 -15.5 -7.6 9.5 Industrial REITs
First REIT AW9U 885 -0.2 36.3 7.1 Health Care REITs
Lippo Malls Indonesia Retail Trust D5IU 867 -2.1 -17.7 9.9 Retail REITs
OUE Hospitality Trust SK7 988 -11.8 N/A 9.3 Hotel & Resort REITs
Cambridge Industrial Trust J91U 740 -9.8 5.7 8.4 Industrial REITs
Far East Hospitality Trust Q5T 1,145 -16.2 -22.5 7.5 Hotel & Resort REITs
Yoma Strategic Holdings Z59 772 -24.3 -28.7 N/A Real Estate Development
Soilbuild Business Space REIT SV3U 696 2.0 N/A 8.7 Diversified REITs
Yanlord Land Group Z25 1,968 -1.8 -29.1 1.3 Real Estate Development
Croesus Retail Trust S6NU 522 -0.1 N/A 7.5 Real Estate Operating Companies
Sabana Shari'ah Compliant Industrial REIT M1GU 527 -16.7 -18.5 9.8 Industrial REITs
Frasers Hospitality Trust ACV 1,005 -9.8 N/A 8.2 Hotel & Resort REITs
Ho Bee Land H13 1,332 4.9 13.2 2.5 Real Estate Development
China Merchants Holdings (Pacific) C22 1,588 2.2 53.8 7.7 Highways & Railtracks
OUE Commercial REIT TS0U 842 -3.9 N/A 6.0 Office REITs
Hong Fok Corporation H30 574 -10.2 34.9 1.4 Real Estate Development
Ying Li International Real Estate 5DM 394 -37.1 -57.2 N/A Diversified Real Estate Activities
China New Town Development Company D4N 542 3.8 10.0 N/A Real Estate Development
Tuan Sing Holdings T24 377 -18.0 1.0 1.6 Real Estate Development
Rowsley A50 785 -7.7 280.9 N/A Multi-Sector Holdings
Viva Industrial Trust T8B 602 -3.7 N/A 10.1 Diversified REITs
IPC Corporation AZA 168 39.5 57.2 1.3 Real Estate Development
Centurion Corporation OU8 289 -21.4 114.1 1.3 Hotels, Resorts & Cruise Lines
IREIT Global UD1U 420 -5.2 N/A 3.2 Office REITs
SingHaiyi Group 5H0 272 -33.3 -16.1 N/A Real Estate Development
HLH Group H27 36 -30.8 -65.4 N/A Agricultural Products
Weiye Holdings BMA 78 17.6 -28.2 N/A Real Estate Development
Debao Property Development K2M 53 315.4 -39.2 N/A Real Estate Development
LHN 41O 47 N/A N/A N/A Real Estate Operating Companies
Average     0.0 10.2 5.9  

Source: SGX, Bloomberg & SGX StockFacts (data as of 22 December 2015)

Note: LHN Limited has experienced irregular trading activity in the year-to-date

*Note: HongKong Land’s market cap is in USD

Alongside the SGX Real Estate Index, SGX also recently introduced the SGX S-REIT 20 Index. The SGX S-REIT 20 Index measures the performance of the largest and most tradable real estate investment trusts listed in Singapore. Singapore’s REIT Sector comprises 35 trusts, whose assets include shopping malls, office towers, industrial parks, hospitality-related assets and healthcare-related assets.