Suntec REIT Suntec City REITsWeek

Suntec REIT was the top Singapore Exchange (SGX)-listed REIT disposed of by institutional investors last week.

The REIT saw an SGD32 million rout of institutional funds during the trading week that began on 11 March.

Suntec REIT is a mixed commercial REIT that owns a portfolio of office and retail assets, most of which are located across Singapore and Australia.

Related: CapitaLand’s flagship REIT sees SGD13.5 million rout of institutional funds

The latest rout of institutional funds from Suntec REIT came amid surprise consumer price index (CPI) data from the US.

This inflation barometer suggests that prices of goods across the US rose by 3.2% in February 2024 when taken on a year-on-year basis.

The hotter-than-expected inflation figure is still way ahead of the US Federal Reserve’s 2% target and this tempers expectations of a 75 basis point-cut in 2024.

Suntec REIT is one of the more highly-geared REITs on the SGX when compared to its peers in the same sector.

The REIT’s gearing is presently at about 42% and this has raised concerns that higher financing costs will hamper prospects of capital distributions in the months ahead.

Top 10 Institution Net Buy (+) Stocks (SGD M) Week of 11 March 2024 Top 10 Institution Net Sell (-) Stocks (SGD M) Week of 11 March 2024
UOB 84.5 Yangzijiang Shipbuilding (42.3)
Singtel 71.9 Suntec REIT (32.0)
Thai Beverage 60.7 CapitaLand Ascendas REIT (21.4)
OCBC 39.7 CapitaLand Investment (20.4)
DBS 29.5 SIA (12.3)
Keppel 27.6 Mapletree Logistics Trust (11.4)
City Developments 15.0 CapitaLand Integrated Commercial Trust (10.9)
Jardine Matheson 12.1 Riverstone Holdings (10.1)
Wilmar International 8.3 Genting Singapore (10.1)
Frasers Centrepoint Trust 7.3 Sembcorp Industries (9.2)

Source: Singapore Exchange

Besides Suntec REIT, CapitaLand Ascendas REIT and CapitaLand Integrated Commercial Trust also saw net outflows of institutional funds during the week.

The REIT former saw an SGD21.4 million rout while the latter experienced an SGD10.9 million outflow of institutional funds.

Another REIT with a net outflow was Singapore-heavy warehouses landlord, Mapletree Logistics Trust (MLT), which saw an SGD11.4 million rout.

There were no REITs listed in the list of top 10 SGX securities acquired by institutional investors during the week.

Over the period, institutional investors were most fond of local banking stock UOB, which saw an SGD84.5 million inflow of funds.

Top 10 Retail Net Buy (+) Stocks (SGD M) Week of 11 March 2024 Top 10 Retail Net Sell (-) Stocks (SGD M) Week of 11 March 2024
SIA 22.2 Singtel (97.2)
Yangzijiang Shipbuilding 20.2 DBS (79.3)
Genting Singapore 17.8 UOB (46.5)
CapitaLand Ascendas REIT 13.5 OCBC (32.4)
Mapletree Logistics Trust 12.7 Keppel (11.8)
Sembcorp Industries 12.5 Dyna-Mac (4.4)
Suntec REIT 11.6 City Developments (4.4)
Golden Agri-Resources 10.6 ST Engineering (3.9)
Seatrium 9.0 SGX (3.5)
Mapletree Pan Asia Commercial Trust 8.7 DFI Retail Group (2.7)

Source: Singapore Exchange

On the contrary, Suntec REIT, CapitaLand Ascendas REIT and MLT were among the top SGX-listed REITs acquired by retail investors during the week.

Suntec REIT saw an SGD11.6 million net inflow of retail funds while MLT saw an SGD12.7 million worth of buy-ins from this group of investors.

Meanwhile, CapitaLand Ascendas REIT was the top SGX-listed REIT acquired by retail investors during the week as its unit price retreated towards multi-week lows.

The REIT saw an SGD13.5 million net inflow of retail funds.

Also seeing a net inflow of retail funds was Mapletree Pan Asia Commercial Trust (MPACT).

There were no REITs in the list of top 10 SGX-listed securities disposed of by retail investors during the week.

Overall during the week, there was an SGD118.8 million net inflow of institutional funds into SGX-listed stocks during the week.

This represents a reversal from the SGD225.4 million net outflow seen in the week prior.

On the other hand, there was an SGD93.7 million net outflow of retail funds from SGX-listed stocks during the week.

This is also a reversal from the SGD143 million net inflow seen in the week prior.

Suntec REIT was last done on the SGX at SGD1.05, which presently implies a distribution yield of 6.80% according to data on the Singapore REITs table.

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By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.