Updated: Jul 6, 2020
With the unexpected Covid-19 global pandemic, we have witnessed one of the most significant market fluctuations in the past decade. The global market has suffered a sell-down in the first six months of 2020. The Straits Times Index (STI) has seen a drop of 18% year-till-date. Singapore REITs were not spared as well; the sector has plunged by more than 34% to its lowest level in March.
Despite the heavy sell-down in the stock market including the REIT sector, there were five REITs that were performing exceptionally well in the past six months. The top three, Keppel DC REIT, Mapletree Logistics Trust and Mapletree Industrial Trust have seen double-digit price growth in 2020!
In this post, we will see which are the five REITs that have been outperforming and what they have in common.
1. Keppel DC REIT (SGX: AJBU)
Keppel DC REIT is the only pure data centre focused REIT listed on the Singapore Stock Exchange (SGX). Its current portfolio comprises 17 data centres strategically located across ten cities in eight countries in the Asia Pacific and Europe.
While the yield has been low (< 3%), Keppel DC REIT has been maintaining solid fundamentals with a low gearing of 30% and high-interest coverage of 13x. YTD June, its share price has been appreciated by more than 20%
2. Mapletree Logistics Trust (SGX: M44U)
Mapletree Logistics Trust is the first Asia-focused logistics REIT, with
a portfolio of 143 logistics assets in Singapore, Hong Kong, Japan, Australia, China, Malaysia, South Korea, and Vietnam. The REIT has been expanding its portfolio in key logistics hubs with direct access to the growing consumer markets.
During this Covid-19 period, the REIT management mentioned that most of its tenants in Hong Kong and Japan are operational and only 5% of its Singapore's tenant base is impacted. Among its tenant base, r