STI REIT Sector Weight to Return to ~13% with Frasers Centrepoint Trust Inclusion

SGX03-13

The STI March quarterly review will see Frasers Centrepoint Trust (FCT) added to the STI effective the Monday 18 March open. This is the first time a pure play Singapore revenue stock was added to the...

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This is the first time a pure play Singapore revenue stock was added to the...</p>\n\n<a href=\"https://www.sgx.com/research-education/market-updates/20240313-sti-reit-sector-weight-return-13-frasers-centrepoint\">Source Link</a>\n\n</div>\n","source":"sgx_stock","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>STI REIT Sector Weight to Return to ~13% with Frasers Centrepoint Trust Inclusion</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nSTI REIT Sector Weight to Return to ~13% with Frasers Centrepoint Trust Inclusion\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-03-13 00:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.sgx.com/research-education/market-updates/20240313-sti-reit-sector-weight-return-13-frasers-centrepoint><strong>SGX</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The STI March quarterly review will see Frasers Centrepoint Trust (FCT) added to the STI effective the Monday 18 March open. This is the first time a pure play Singapore revenue stock was added to the...</p>\n\n<a href=\"https://www.sgx.com/research-education/market-updates/20240313-sti-reit-sector-weight-return-13-frasers-centrepoint\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU0488056044.USD","symbol_name":"Allianz Asian Multi Income Plus Cl AM DIS USD","start_time":0,"source_url":"https://www.sgx.com/research-education/market-updates/20240313-sti-reit-sector-weight-return-13-frasers-centrepoint","article_id":"2419152091","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2419152091","pubTimestamp":1710259200,"sourceInfo":{"source_id":"sgx_stock","name":"SGX"},"weMediaInfo":null,"summary":"The STI March quarterly review will see Frasers Centrepoint Trust (FCT) added to the STI effective the Monday 18 March open. 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This is the first time a pure play Singapore revenue stock was added to the STI since CapitaLand Commercial Trust (which has since merged with CapitaLand Mall Trust) was added 8 years ago.  FCT’s inclusion is expected to take the STI’s REIT Sector weight back to ~13% from ~12% at present, and the number of STI REITs back to seven, following Keppel DC REIT leaving the STI in June 2023. The REIT Sector remains the third biggest Sector weight in the STI after Banks and Industrials. Based trading turnover rankings in early 2024, the seven REITs also stand to contribute ~18% of the STI’s average daily turnover.    The number of retail malls in the FCT portfolio have tripled since it listed in July 2006 with an initial unit price of S$1.03. It unit price ended 12 March at S$2.19, and according to Bloomberg has paid more than S$1.80 per unit in distributions since IPO, bringing its annualised total return since listing to 10.3%. The STI has kept pace with regional benchmarks since the end of 2019, and as a country benchmark maintains one the highest indicative dividend yields across the globe.The indicative weights of all 30 current STI constituents as of the end of 2023 are available here. At the end of last year, the STI included six S-REITs, with a combined weightage of 12.8%.The subsequent 10 weeks have seen consensus expectations for an FOMC Fed Funds Rate cut deferred from the end of 1Q24, to the end of 2Q24. Impacting the outlook for financing costs, this has seen the six STI REITs average 9.4% declines in unit prices post the indicative 29 Dec 2023 STI weightages. At the same time, the remaining 23 constituents averaged less declines, with the heavyweight Bank Sector averaging a 0.1% price gain. This means the current indicative weight of the six S-REITs in the STI is currently closer to 11.9%.However, the inclusion of Frasers Centrepoint Trust (FCT) with an approximate weight of 0.8%, will take the S-REIT Sector weightage in the STI back to the vicinity of 12.7%.The indicative S-REIT weights within the STI, effective 18 March (based on 12 March prices) are tabled below.STI S-REIT Constituents Weights w.e.f. 18 March openCodeSTI Weight on 29 Dec 2024 YTD Unit Price % Chg.Ind. STI Weight on 18 MarchUnit Price 12 MarchRCETP 12 MarchP/B (x)5-yr Avg P/B (x)Annualised 5-yr TR%Distr.Yield* %CapitaLand Integrated Commercial TrustC38U3.5%-4.93.4%$1.96$2.1660.921.030.75.5CapitaLand Ascendas REITA17U3.6%-10.63.3%$2.71$3.1391.171.275.15.5Mapletree Logistics TrustM44U1.9%-15.51.6%$1.47$1.7920.971.265.66.1Mapletree Industrial TrustME8U1.6%-8.41.5%$2.30$2.5561.181.457.85.9Mapletree Pan Asia Commercial TrustN2IU1.2%-15.91.0%$1.32$1.6170.741.11-1.36.6Frasers Logistics & Commercial TrustBUOU1.1%-9.61.0%$1.04$1.2980.891.173.56.8Frasers Centrepoint TrustJ69UN/A-3.10.8%$2.19$2.4350.941.054.65.6Total 12.8%12.7%Average-9.73.76.0 *Distribution Yields as of 29 Feb 2024. Note P/B refers to Price-to-Book and RCETP refers to Refinitiv Consensus Estimate Target Price which represent the average of individual estimates provided by analysts covering the stock and estimates typically represent an analyst's opinion of the stock performance over the next 18 months. Indicative STI weights can be subject to change between now and 18 March.  All Data as of 12 March 2024, Source: SGX, Refinitiv, Bloomberg.As detailed in the table above, the majority of the STI REITs have generated positive total returns over the past five years. All seven of the REITs tabled above are also trading at discounts to their Refinitiv Consensus Estimate Target Price (RCETP), with Frasers Logistics & Commercial Trust, Mapletree Pan Asia Commercial Trust and Mapletree Logistics Trust unit prices closing 12 March at the biggest discount to their respective RCETP. These RCETPs are updated regularly on the SGX Stock Screener.All the above tabled REITs are also trading at Price-to-book (P/B) ratios below their respective 5-year average P/B ratios. Note, however multiple REITs have pursued strategic mergers and acquisitions over the five year period, impacting their comparative book values. For instance, Mapletree Pan Asia Commercial Trust was formed in August 2022 after Mapletree Commercial Trust merged with Mapletree North Asia Commercial Trust.Incoming STI constituent FCT has also been active on the acquisition and divestment front since its FY18. It recently increased its initial 25.5% acquisition of NEX in February 2023, to a 50% interest. A private placement of S$200 million helped to partially fund the increased interest. NEX is seen as strategic fit to FCT’s prime suburban retail portfolio, and is also the largest suburban mall in the northeast of Singapore by Net Lettable Area. The number of retail malls in the FCT portfolio have tripled since it listed in July 2006, with the initial unit price of S$1.03. It units ended 12 March at S$2.19, and according to Bloomberg has paid more than S$1.80 per unit in distributions since IPO.The 6.0% average distribution yield for the seven REITs are taken from data as of 29 Feb.Further Resources and Research STI: STI Constituents | STI Index Rules as of Aug 2023Recent Financial Results/Business UpdatesCapitaLand Ascendas REIT: CapitaLand Ascendas REIT FY23 ResultsCapitaLand Integrated Commercial Trust: CapitaLand Integrated Commercial Trust FY23 ResultsMapletree Logistics Trust: Mapletree Logistics Trust 3QFY23 Results | Mapletree Logistics Trust 2QFY23 ResultsMapletree Industrial Trust: Mapletree Industrial Trust 3QFY23 Results | Mapletree Industrial Trust 2QFY23 ResultsMapletree Pan Asia Commercial Trust: Mapletree Pan Asia Commercial Trust 3QFY23 Results | Mapletree Pan Asia Commercial 2QFY23 ResultsFrasers Logistics & Commercial Trust: Frasers Logistics & Commercial Trust FY23 ResultsFrasers Centrepoint Trust: Frasers Centrepoint Trust FY23 ResultsRelated Analyst ReportsCapitaLand Ascendas REIT: DBS – CapitaLand Ascendas REIT Update: Back on the growth path | DBS – CapitaLand Ascendas REIT Update: Redevelopment in progress, acquisition to boost growthCapitaLand Integrated Commercial Trust: DBS – CapitaLand Integrated Commercial Trust Update: Onward as oneMapletree Logistics Trust: DBS – Mapletree Logistics Trust Update: Citadel of safety | DBS – Mapletree Logistics Trust Update: Well positioned for an economic shadowMapletree Industrial Trust: DBS – Mapletree Industrial Trust Update: Strengthening defences as interest rates bites | DBS – Mapletree Industrial Update: Navigating near term bends | DBS – Mapletree Industrial Trust Update: Strength in diversityMapletree Pan Asia Commercial Trust: DBS – Mapletree Pan Asia Commercial Trust Update: Anchored by strong Singapore | DBS – Mapletree Pan Asia Commercial Trust Update: Patience has its rewardsFrasers Logistics & Commercial Trust: CGS-CIMB – Frasers Logistics & Commercial Trust Update: Robust balance sheet | DBS – Frasers Logistics & Commercial Trust Update: Optimising balance sheet through L&I expansion | DBS – Frasers Logistics & Commercial Trust Update: UK development projects fully leasedFrasers Centrepoint Trust: DBS – Frasers Centrepoint Trust Update: Remaining top of class | DBS – Frasers Centrepoint Trust Update: CCP divestment gives two bangs for a buck | CGS-CIMB – Frasers Centrepoint Trust Update: Seizing the opportunity to deleverage | DBS – Frasers Centrepoint Trust Update: Going the extra mileCompany InterviewsFrasers Logistics & Commercial Trust: Frasers Logistic & Commercial Trust: Pursuing Strategic Opportunities | 10 in 10 with Frasers Log & Comm Trust – Building a Flagship Industrial & Commercial PortfolioFrasers Centrepoint Trust: 10 in 10 with Frasers Centrepoint Trust – Capturing the suburban waveEnjoying this read?Subscribe now to the SGX My Gateway newsletter for a compilation of latest market news, sector performances, new product release updates, and research reports on SGX-listed companies.Stay up-to-date with our SGX Invest Telegram channel.","kind":null,"is_publish_news":null,"is_publish_highlight":null,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.22.4","shortVersion":"4.22.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2419152091"}