To The Moon

Listed in Singapore, the UOB Apac Green Reit ETF $UOB APAC Green REIT ETF(GRN.SI)$ $UOB AP GRN REIT US$(GRE.SI)$ is a Reit ETF that provides portfolio exposure into higher-yielding Reits in Asia-Pacific with a focus on environmental performance based on the Global Real Estate Sustainability Benchmark’s (GRESB’s) assessment.

12 S-REITs in the iEdge-UOB APAC Yield Focus Green REIT Index

Since inception, the ETF has recorded a net inflow of S$87 million with S$18 million shares traded. Retail investors hold roughly 40% of total outstanding shares while institutional investors hold the remaining 60%.

The Reit ETF tracks the iEdge-UOB Apac Yield Focus Green Reit Index which comprises 50 constituents that meet certain environment factors across indicators such as energy and water consumptions, greenhouse gas (GHG) emissions, and green building certifications, while also maintaining a highly competitive dividend yield. The Reit ETF has a dividend yield of around 4.5%.

By applying the green tilt, it means that the 50 constituents of the index emit 19% less GHG emissions, consume 20% less water and 17% less energy than the non-green market-cap weighted version of the index.

This comes on the back of increased spotlight on decarbonisation efforts within the property sector, since it accounts for 30% of global GHG emissions and consumes 40% of the world’s energy, according to the UN Environmental Programme.

During the latest March rebalance, three more S-Reits were added to the index, alongside one Japanese and two Australian Reits, and replacing one Australian and five Japanese Reits. With that, there are now 12 S-Reits in the index.

Breakdown of iEdge-UOB APAC Yield Focus Green REIT Index

The three S-Reits included in this round of rebalancing are CapitaLand Integrated Commercial Trust (CICT) $CapLand IntCom T(C38U.SI)$ , Frasers Logistics & Commercial Trust (FLCT) $FRASERS LOGISTICS & IND TRUST(BUOU.SI)$ , and CapitaLand Ascott Trust (CLAS) $Ascott Trust(HMN.SI)$ .

Since the rebalance took effect to date, the three S-Reits recorded over S$35 million in net institutional inflows.

These three were also among the top five S-Reits which booked net institutional inflows totalling S$32 million in the last five trading sessions ended May 3, which also included Keppel DC Reit $KEPPEL DC REIT(AJBU.SI)$ and Mapletree Logistics Trust $MAPLETREE LOGISTICS TRUST(M44U.SI)$ .

1. $CapLand IntCom T(C38U.SI)$

CICT reported 11.3%year-on-year (yoy) growth in its first quarter (Q1) 2023 net property income (NPI), boosted by full quarter contributions from acquisitions in the first half (H1) 2022 and improvements in rental income from office and integrated development assets.

CICT achieved retail and office rental reversions at 6 per cent and 4.2% respectively in Q1 2023, bolstered by downtown malls which saw tenant sales jump over 20% yoy and potentially benefitting from the return of tourist arrivals in Singapore.

2. $FRASERS LOGISTICS & IND TRUST(BUOU.SI)$

FLCT reported a 13.4% yoy decrease in NPI for H1 2023, mainly due to the absence of contribution from Cross Street Exchange which was divested in March 2022.

However, it achieved positive rental reversion at 3.6% on an incoming rent versus outgoing rent basis and maintains a portfolio occupancy rate of 95.9%.

3. $Ascott Trust(HMN.SI)$

CLAS reported 90% yoy growth in revenue per available unit on higher occupancy and room rates.

CLAS is cautiously optimistic about the continued recovery of the hospitality sector and expects demand from international and domestic segments to remain strong.

https://www.sgx.com/research-education/market-updates/20230508-reit-watch-three-more-s-reits-added-iedge-uob-apac-yield