Friday, May 15, 2015

Singapore REITs with Japan Exposure Average 6.4% Dividend Yield

  • Of the 28 Real Estate Investment Trust (REITs) and six stapled trusts listed on SGX, eight have property exposure in Japan.
  • These eight REITs have a combined market capitalisation of S$11.9 billion and maintain an average dividend yield of 6.4%. This is more than double the yield of the Singapore Fixed Income (SFI) Index at 3.01%.
  • The five of the eight REITs that maintain the highest dividend yields are Ascendas Hospitality Trust (7.5%), Saizen Real Estate Investment Trust (6.7%), Ascott Residence Trust (6.5%), CDL Hospitality Trusts (6.5%) and Mapletree Logistics Trust (6.4%).
As noted in a recent market update (click here to view more), there are nine REITs with Mainland China Exposure listed on the Singapore Exchange (SGX), and they generated 6% total returns year-to-date. Besides Mainland China, Japan is another country that Singapore REITs have sizeable operations in.

Of the 28 Real Estate Investment Trust (REITs) and six stapled trusts listed on SGX, eight have property exposure in Japan. Four of these eight trusts derive at least 10% of their revenue from Japan, while Saizen REIT, which is domiciled in Singapore and launched by Japan Regional Assets Manager Limited, attributes all its revenue to Japan. These eight REITs are also diversified in terms of their industry – using GICS ®, one is a Healthcare REIT, three are Hotel and Resort REITs, one is an Industrial REIT, two are Residential REITs, and another a Retail REIT.

These eight REITs have a combined market capitalisation of S$11.9 billion, and maintain an average dividend yield of 6.4%, which is more than double that of the Singapore Fixed Income (SFI) Index at 3.01%. The five trusts that offer the highest dividend yields are Ascendas Hospitality Trust (7.5%), Saizen Real Estate Investment Trust( 6.7%), Ascott Residence Trust (6.5%), CDL Hospitality Trusts (6.5%) and Mapletree Logistics Trust (6.4%).

They eight REITs generated an average price gain of 0.9% in the year thus far, with dividends boosting total returns to 3.8%. The five best-performers among the eight in terms of total returns year-to-date were Starhill Global REIT (+10.1%), Saizen Real Estate Investment Trust (+4.9%), Ascendas Hospitality Trust (+4.4%), Frasers Hospitality Trust (+3.1%) and Mapletree Logistics Trust (+3.0%).

The table below details the eight REITs sorted by market capitalisation.
Source: SGX StockFacts (Data as of 13 May 2015)

Mapletree Logistics Trust
Mapletree Logistics Trust was listed in 2005 and Singapore’s first listed Asia-focused logistics REIT. On its website, Mapletree Logistics Trust, note they have logistics real estate assets in Singapore, Japan, Hong Kong SAR, South Korea, China, Malaysia and Vietnam. A presentation of the REIT’s 4Q and 2015 Financial Year 2015 (which ended 31 March) results can be found here. For the 2015 Financial Year Distributions Per Unit (DPU) rose 2% year on year to 7.50 cents. Property assets in Japan include:
  • Aichi Miyoshi Centre in Miyoshi, Aichi, Chubu
  • Atsugi Centre in Aiko, Kanagawa, Kanto
  • Ayase Centre in Ayase, Kanagawa, Kanto
  • Eniwa Centre in Eniwa, Hokkaido
  • Funabashi Centre in Funabashi, Chiba, Kanto
  • Gyoda Centre in Gyoda, Saitama, Kanto
  • Hiroshima Centre in Hiroshima, Chugoku
  • Iruma Centre in Iruma, Saitama, Kanto
  • Iwatsuki Centre in Saitama, Kanto
  • Kashiwa Centre in Kashiwa, Chiba, Kanto
  • Kyotanabe Centre in Kyotanabe, Kyoto, Kansai
  • Kyoto Centre in Nagaokakyo, Kyoto, Kansai
  • Mizuhomachi Centre in Nishitama, Tokyo, Kanto
  • Mokurenji Centre in Iruma, Saitama, Kanto
  • Moriya Centre in Moriya, Ibaraki, Kanto
Ascott Residence Trust
Ascott REIT was listed in 2006 and was the first pan-Asian serviced residence listed REIT. As noted on their website, Ascott Residence Trust has real estate assets in Australia, Belgium, China, France, Germany,  Indonesia, Japan, Malaysia, The Philippines, Singapore, Spain, United Kingdom and Vietnam. A presentation of the REIT’s first quarter of the 2015 financial year can be found here. Property assets in Japan include:
  • Citadines Karasuma-Gojo in Shimogyo-ku, Kyoto,
  • Citadines Shinjuku in Shinjuku-ku, Tokyo,
  • Somerset Azabu East in Minato-ku, Tokyo,
  • Best Western Shinjuku Astina Tokyo Hotel in Shinjuku-ku, Tokyo,
  • 19 rental housing properties are located in eight wards in Tokyo; Roppongi, Shinjuku, Bunkyo, Meguro, Setagaya, Nakano, Suginami, Nerima and Taito Ku,
  • 12 rental housing properties are located in six cities of Japan; Fukuoka, Sapporo, Sendai, Hiroshima, Saga and Kyoto.
Starhill Global REIT
Starhill Global REIT was listed in 2005, and is a Singapore-based REIT investing primarily in real estate used for retail and office purposes, both in Singapore and overseas. As noted on their website, Starhill Global REIT has real estate assets in Singapore, Malaysia, Australia, China and Japan. A recent results presentation of the REIT can be found here. Property assets in Japan include:
  • Daikanyama in Shibuya-ku, Tokyo,
  • Ebisu Fort in Shibuya-ku, Tokyo,
  • Harajyuku Secondo in Shibuya-ku, Tokyo,
  • Nakameguro Place in Meguro-ku, Tokyo,
  • Roppongi Terzo in Minato-ku, Tokyo.
CDL Hospitality Trusts
CDL Hospitality Trusts, through its subsidiaries, operates as a hotel real estate investment trust (REIT). It invests in a portfolio of hospitality and hospitality related real estate assets. The company has elected to be taxed as a REIT. As a REIT, it would not be subject to corporate income tax on 90% of its net income that is distributed to shareholders. CDL Hospitality Trusts was founded in 2006 and is based in Singapore, Singapore. As noted on their website, CDL Hospitality Trusts has real estate assets in Singapore, Australia, New Zealand, The Maldives and Japan. A recent results presentation of the REIT’s first quarter of the 2015 financial year can be found here. Property assets in Japan include:
  • Hotel MyStays Asakusabashi in Tokyo,
  • Hotel MyStays Kamata in Tokyo.
Parkway Life Real Estate Investment Trust
Parkway Life Real Estate Investment Trust 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. The company was incorporated in 2007 and is based in Singapore, Singapore. As noted on their website, Parkway Life REIT has real estate assets in Singapore, Japan and Malaysia. A recent results presentation of the REIT can be found here. Property assets in Japan include:
  • Sawayaka Sakurakan in Akita,
  • Senior Chonaikai Makuhari Kan in Chiba,
  • P-Life Matsudo in Chiba,
  • Amille Nakasyo in Okayama,
  • Sawayaka Niihamakan in Ehime,
  • Sawayaka Minatokan in Niigata,
  • Sawayaka Seaside Toba in Mie,
  • Excellent Tenpaku Garden Hills in Aichi,
  • 12 real estate properties in Osaka,
  • 10 real estate properties in Fukuoka,
  • 4 real estate properties in Hokkaido,
  • 3 real estate properties in Hyogo
  • 3 real estate properties in Kanagawa,
  • 3 real estate properties in Saitama.
Frasers Hospitality Trust
Frasers Hospitality Trust operates as a hotel and serviced residence trust. Its portfolio consists of 12 hospitality properties comprising 6 hotels and 6 serviced residences with a total of 1,928 hotel rooms and 842 serviced residence units located in Singapore, Australia, the United Kingdom, Japan, and Malaysia. The company is based in Singapore. As noted on their website, Frasers Hospitality Trust has real estate assets in Singapore, Japan, Malaysia, Australia and the United Kingdom. A recent results presentation of the REIT can be found here. The property asset in Japan is Ana Crowne Plaza in Kobe, Hyogo.

Ascendas Hospitality Trust
Ascendas Hospitality Trust is a stapled group comprising Ascendas Hospitality Real Estate Investment Trust and Ascendas Hospitality Business Trust. The trust invests, directly or indirectly, in a diversified portfolio of income-producing real estate used predominantly for hospitality purposes located across Asia, Australia and New Zealand, as well as real estate related assets in connection with the foregoing. Ascendas Hospitality Trust was launched in July 2012, and is domiciled in Singapore.
A recent result presentation of the REIT can be found here. As noted on their website, Ascendas Hospitality Trust has real estate assets in Australia, China, Japan and Singapore. Property assets in Japan include:
  • Osaka Namba Washington Hotel Plaza in Osaka,
  • Hotel Sunroute Ariake and Oakwood Apartments Ariake Tokyo in Tokyo.
Saizen Real Estate Investment Trust
Saizen Real Estate Investment Trust is a real estate investment trust launched by Japan Regional Assets Manager Limited. The fund is managed by Japan Residential Assets Manager Limited. The fund invests in residential properties of Japan. It primarily invests in real estate primarily for residential and residential-related purposes, and real estate-related assets. Saizen Real Estate Investment Trust was formed on 27 September 2007 and is domiciled in Singapore.
A recent result presentation of the REIT can be found here. As noted on their website, Saizen REIT has 136 real estate assets in 14 cities of Japan. Property assets in Japan include:
  • Matsukaze Building in Hakodate,
  • Taisei Building III in Oita,
  • Gardenia Kurashiki in  Kurashiki,
  • 35 real estate assets in Sapporo,
  • 19 real estate assets in Sendai,
  • 18 real estate assets in Hiroshima,
  • 18 real estate assets in Kitakyushu,
  • 16 real estate assets in Kumamoto,
  • 10 real estate assets in Fukuoka,
  • 4 real estate assets in Kagoshima,
  • 4 real estate assets in Tokyo,
  • 3 real estate assets in Morioka,
  • 3 real estate assets in Koriyama,
  • 3 real estate assets in Niigata.

Source: My Gateway

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