BILLION DOLLAR CLUB: REITS
Frasers Logistics & Commercial Trust (FLCT) is one of the REITs under Frasers Property with a portfolio of more than 100 logistics and commercial properties worth around $6.5 billion spread over five major developed countries — Singapore, Australia, Germany, the UK and the Netherlands.
FLCT’s investment strategy is to invest globally in a diversified portfolio of income-producing properties. With strong connectivity to key infrastructure, FLCT’s modern portfolio consists predominantly of assets with freehold or long leasehold land tenure and a well-diversified tenant base.
FLCT was listed on June 2016 as Frasers Logistics & Industrial Trust and subsequently renamed FLCT on April 29, 2020, following the merger with Frasers Commercial Trust.
In the REIT’s most recent annual report for FY2021 ended September 2021, chairman and independent non-executive director Ho Hon Cheong reported that the REIT had enlarged its asset portfolio from 51 properties in Australia to 103 properties in the five markets. The value of the assets under the REIT has increased threefold over a five-year period, from $1.6 billion at IPO to $7.3 billion at the end of FY2021.
In FY2021, FLCT’s adjusted net property income increased by 37.5% from $258.3 million in FY2020 to $355.2 million in FY2021, helped by its merger with Frasers Commercial Trust as well as organic income growth. For the three years taken into consideration for the awards, FLCT’s PAT saw a CAGR of 31.7%, making it the winner in this category. In addition, FLCT was named the overall sector winner.
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“While the pandemic-induced uncertainty continues to cloud the outlook for many industries, the outlook for the logistics & industrial and commercial sectors is expected to remain positive,” says Ho.
ParkwayLife REIT (PLife REIT), on the other hand, won for best returns to shareholders, with a CAGR of 17.2% over the three years under consideration. PLife REIT is known for its portfolio of leading private hospitals in Singapore — specifically Mount Elizabeth Hospital, Gleneagles Hospital and Parkway East Hospital. In recent years, its M&A activities have focused on Japan. Specifically, it has been acquiring a growing list of nursing homes, with nearly 60 such properties now under its portfolio.
Today, PLife REIT claims to be one of Asia’s largest listed healthcare REITs. As at Sept 28, PLife REIT’s total portfolio stands at 61 properties with a total value of $2.35 billion. The REIT has chalked up an enviable, uninterrupted track record of growing DPU since its listing in 2007. From an annualised 6.32 cents in FY2007, the DPU has steadily increased to 14.08 cents in FY2021 ended December 2021 — an increase of 122.8%.
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Mapletree Industrial Trust (MIT) won for best weighted ROE of 7.96%. MIT is one of the REITs under sponsor Mapletree Investments. Its strategy is to invest in a diversified portfolio of income-producing real estate used primarily for industrial purposes in Singapore and income-producing real estate beyond Singapore used primarily as data centres as well as real estate-related assets.
As at June 30, MIT had total assets under management of $8.8 billion, which comprised 85 properties in Singapore and 56 properties in North America — including 13 data centres held through the joint venture with its sponsor. MIT’s property portfolio ranges from data centres to business park buildings to light industrial buildings.
CENTURION CLUB: REITS
IREIT Global tops Centurion for REIT sector; Sabana REIT, Dasin Retail REIT and First REIT win in categories
IREIT Global, led by CEO Louis d’Estienne d’Orves, was the first S-REIT to primarily invest in Europe / Photo: IREIT Global
O ver at the Centurion Club for REITs, IREIT Global, led by CEO Louis d’Estienne d’Orves, is named overall sector winner. When it was listed in August 2014, IREIT Global was the first S-REIT to invest primarily in Europe. Today, its portfolio comprises five freehold office properties in Germany, five freehold office properties in Spain and 27 freehold retail properties in France, with a total lettable area of approximately 384,000 sqm. The portfolio has an average occupancy rate of about 95% and a valuation of about EUR1 billion ($1.4 billion). The manager IREIT Global is owned jointly by Tikehau Capital and City Developments.
Sabana Industrial REIT is the winner for returns to shareholders with a three-year CAGR of 3%. As at Dec 31, 2021, it has a diversified property portfolio valued at $866.2 million, comprising 18 properties across Singapore. The portfolio has a total gross floor area of some 4.2 million sq ft.
Meanwhile, Dasin Retail Trust is the only China retail property trust with direct exposure to China’s Greater Bay Area. It was listed on January 2017 and its mandate is to invest in, own or develop land, uncompleted developments or income-producing real estate for retail use in China. As at Dec 31 2021, Dasin’s portfolio comprises seven retail malls located in the Guangdong cities of Zhongshan, Zhuhai and Foshan in China valued at around RMB11.3 billion ($2.4 billion). These properties host a tenant base of over 500 local and international retailers. Dasin REIT, with a CAGR growth in PAT of 20.2%, is the overall winner in this category.
Last but not least, First REIT is named a winner for having the best weighted ROE of 7.61% over the three years. It was listed back in 2006 as the first healthcare REIT in Singapore. Over the years, First REIT has grown its asset base to 31 properties comprising 16 located in Indonesia, three in Singapore and 12 in Japan. The properties are valued collectively at over $1.25 billion as at Dec 31, 2021. The stable income-producing portfolio covers the full scale of healthcare real estate, including hospitals, nursing homes and other healthcare-related facilities
