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The figure is higher than the average and median returns of both the world’s 100 biggest capitalised real estate stocks and Asia Pacific’s biggest capitalised real estate stocks.
CapitaLand Group’s eight Singapore-listed stocks significantly outpaced broader benchmarks, while generating higher average returns compared to their regional and global peers in the year to date.
“Together the eight stocks averaged a 3.3 percent total return in the September quarter (through to 18 September), bringing their average 2019 year to date total return to 28.2 percent,” revealed the Singapore Exchange (SGX) on Thursday (19 September).
The figure is higher than the average and median returns of both the world’s 100 biggest capitalised real estate stocks and Asia Pacific’s biggest capitalised real estate stocks.
In fact, each of the group’s eight stocks outperformed the average and median returns of Asia Pacific’s 100 biggest capitalised real estate stocks.
On 30 June, CapitaLand and Ascendas-Singbridge completed a transaction to form the largest diversified real estate groups in Asia.
The enlarged group, which comprises one listed company, one business trust, one hospitality trust and five REITs, maintains a portfolio of over 1,000 properties in more than 30 countries, with a combined assets under management (AUM) of $129 billion.
This means the unified entity now has a combined market capitalisation of $53 billion.
“For a global perspective, the world’s largest capitalised real estate stock is American Tower Corp with a market capitalisation of approximately $135 billion, whilst the tenth largest stock is Welltower Inc with a market capitalisation of $50 billion.”
SGX noted that the eight stocks accounted for almost 12 percent of the day-to-day turnover on the local stock market.
Aside from generating robust investor returns in the year to date, all eight stocks offered more active and experienced investors with short-term trading opportunities. The stocks averaged “at least one percent swings between their intraday high and low on a daily basis for the 12 months ending June 2019”, added SGX.
The short term movers was led by Ascendas India Trust, which averaged 1.8 percent swings between daily highs and lows. CapitaLand Commercial Trust, CapitaLand Mall Trust and Ascott Residence Trust, on the other hand, all averaged 1.6 percent daily trading ranges.
“Momentum has come from rotation into REITs across the world on lower interest rates,” noted SGX.
The US Treasury 10-year yields ended 2018 at 2.68 percent, and before gradually decreasing to a low of 1.43 percent on 3 September. US Federal Reserve chair Jerome Powell pointed to unsolved geopolitical risk and trade policy developments as two key reasons for slashing interest rates by 25 basis points.
Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email victorkang@propertyguru.com.sg
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