To The Moon

Singapore lists 6 S-Reits with exposure to Malaysia assets – $Ascott Trust(HMN.SI)$, $FRASERS HOSPITALITY TRUST(ACV.SI)$, $KEPPEL DC REIT(AJBU.SI)$, $MAPLETREE LOGISTICS TRUST(M44U.SI)$, $PARKWAYLIFE REIT(C2PU.SI)$ and $STARHILL GLOBAL REIT(P40U.SI)$. In addition to these 6, $CapLand IntCom T(C38U.SI)$ holds an approximate 10.9% stake in Malaysia-listed Sentral Reit (as at Dec 31, 2021).

Malaysia’s economy recorded stronger GDP growth of 8.9% year on year in Q2 2022, following its 5.0% growth in Q1 2022 driven by stronger domestic demand, normalising of economic activity and the reopening of its international borders.$STARHILL GLOBAL REIT(P40U.SI)$, $FRASERS HOSPITALITY TRUST(ACV.SI)$, $MAPLETREE LOGISTICS TRUST(M44U.SI)$, $Ascott Trust(HMN.SI)$, $KEPPEL DC REIT(AJBU.SI)$, $PARKWAYLIFE REIT(C2PU.SI)$

1. $STARHILL GLOBAL REIT(P40U.SI)$

Starhill Global Reit owns and manages 2 retail properties in its Malaysia portfolio – The Starhill and Lot 10, contributing 14.5% of its total portfolio in terms of asset value (as at Jun 30, 2022). The Reit’s net property income for H2 FY21/22 grew 7.6% YoY to S$75.1 million largely due to the cessation of rental rebates in Malaysia following the completion of asset enhancement works at The Starhill, as well as lower expenses for the group. NPI for its Malaysia properties rose 70.1% YoY in H2 FY21/22, bringing its overall FY21/FY22 growth for the segment to 43.8%.

Asset enhancement works for The Starhill was completed in December 2021 and the mall attracted new tenants like The Chamber’s flagship store which has the widest liquor collection in the country, Eslite Spectrum a renowned Taiwanese bookstore with the first flagship store in Southeast Asia opening in end 2022, and other luxury flagship stores including Tom Ford, Roberto Coin, Paul & Shark, and Balmain. The Reit’s Lot 10 continued to attract new tenants including Genki Sushi, 32 Parfait and The Soybean Factory.

2. $FRASERS HOSPITALITY TRUST(ACV.SI)$

Frasers Hospitality Trust has The Westin Kuala Lumpur in its Malaysia portfolio, contributing 5.0% in total gross revenue (as at Mar 31, 2022). In its latest business updates for Q3 FY22, The Westin Kuala Lumpur recorded a strong rebound in occupancy to 36.0% from both corporate and leisure demand, and revenue per available room almost doubling YoY in 9MFY22 due to improved average daily rate and occupancy.

3. $MAPLETREE LOGISTICS TRUST(M44U.SI)$

Mapletree Logistics Trust has 4.9% of its assets under management in 16 logistics properties in Malaysia (as at Jun 30, 2022). Mapletree Logistics Trust reported 13.2% YoY growth in NPI and 17.2% YoY growth in amount distributable to unitholders. Distribution per unit to unitholders rose 5.0% to 2.268 Singapore cents, citing steady growth in operating results underpinned by stable occupancy and contributions from an enlarged portfolio.

Active asset enhancement to unlock value is a key management strategy and Mapletree Logistics Trust is exploring the potential amalgamation of Subang 3 and 4 in Malaysia with the 2 land parcels acquired recently. Redevelopment costs are expected to be around S$173 million with a project completion target in 2027.

Source: https://www.sgx.com/research-education/market-updates/20220905-reit-watch-s-reits-malaysia-assets-record-stronger