A Singapore Exchange (SGX) representative has confirmed with REITsWeek that an exchange-traded fund (ETF) that tracks the SGX APAC ex Japan Dividend Leaders REIT Index is on track for launch in 2016.
SGX first announced in late August 2016 that it has launched the index to track a basket of 30 REITs across the Asia-Pacific region, excluding Japan.
The SGX APAC ex Japan Dividend Leaders REIT Index will feature REITs that pay the largest dividends, but individual constituent weights in the index are capped at 10% to ensure diversification.
Although further details on the ETF’s launch date are not yet available, the bourse has released important facts on the index, which will give investors a clearer picture on the REITs that they will be investing in with the ETF.
The SGX APAC ex Japan Dividend Leaders REIT Index consists of predominantly Australian REITs (61%). Next largest components are Singapore REITs (27%), and Hong Kong REITs (12%) respectively.
| REIT Name | Weight (%) | REIT Listed In |
|---|---|---|
| Link REIT | 11.21 | Hong Kong |
| Scentre Group | 10.3 | Australia |
| Stockland | 8.65 | Australia |
| Westfield Corp | 8.23 | Australia |
| Vicinity Centres | 7.48 | Australia |
| GPT Group | 5.97 | Australia |
| Mirvac Group | 5.82 | Australia |
| Goodman Group | 5.66 | Australia |
| Ascendas REIT | 4.47 | Singapore |
| CapitaLand Mall Trust | 3.52 | Singapore |
| Suntec REIT | 3.14 | Singapore |
| CapitaLand Commercial Trust | 2.47 | Singapore |
| Mapletree Industrial Trust | 1.93 | Singapore |
| Mapletree Greater China Commercial Trust | 1.88 | Singapore |
| Investa Office Fund | 1.76 | Australia |
| Keppel REIT | 1.69 | Singapore |
| Mapletree Commercial Trust | 1.56 | Singapore |
| Mapletree Logistics Trust | 1.55 | Singapore |
| Charter Hall Group | 1.38 | Australia |
| Champion REIT | 1.28 | Hong Kong |
| Charter Hall Retail REIT | 1.22 | Australia |
| Shopping Centres Australasia Property | 1.19 | Australia |
| BWP Trust | 1.06 | Australia |
| Cache Logistics Trust | 1.05 | Singapore |
| Ascott Residence Trust | 1.03 | Singapore |
| Cromwell Property Group | 1.02 | Australia |
| Starhill Global REIT | 0.97 | Singapore |
| Frasers Centrepoint Trust | 0.92 | Singapore |
| CDL Hospitality Trust | 0.88 | Singapore |
| Abacus Property Group | 0.71 | Australia |
The constituents will be reviewed semi-annually in March and September each year.
The SGX has confirmed that besides Australia, Hong Kong and Singapore, REITs listed in Malaysia, India, South Korea, and Thailand will also qualify should they meet the constituents’ criteria.
As at August 2016, SGX has classified 72.81% of the REITs as ‘commercial REITs’, while ‘diversified REITs’ make up 16.54% of the index. The rest of the constituents have been identified as residential REITs, and specialised REITs respectively.
As at July 2016, the SGX APAC ex Japan Dividend Leaders REIT Index has a market capitalisation of USD139.3 million, with a dividend yield of 4.53%, and a P/E ratio of 10.91.
The index’s net total returns over one year, three years and five years are 19.48%, 10.28%, and 9.13% respectively.