Two wooden houses and a poster with a symbol of falling value. concept of real estate value decrease. low liquidity and attractiveness of assets. cheapening the rent or cost of buying a home

18 REITs lost 50% or more within 7 trading days

Alvin Chow
Alvin Chow

REITs had a terrible week.

The sell-off started from 11 Mar 2020 and there was no end in sight even on 19 Mar 2020.

Here’s the quick battle damage assessment. I’m not doing this to ridicule those who have invested in REITs but to do a stock take of the markets because everything happened so fast and in such a huge degree.

S$37 billion were wiped out from REITs market capitalisation in 7 trading days.

2 REITs, Dasin Retail Trust and Frasers L&I Trust (AUD), declined 1.87% and 2.26% respectively but that was due to low liquidity and little trading of the units. Hence I suspect that’s not the true reflection of the investors’ sentiments. They may just gap down when future trades are done.

All the other REITs have lost at least 25% in the last 7 trading sessions.

25 REITs lost more than 10% on 19 Mar 2020 alone.

There were 18 REITs that lost more than 50% in 7 trading days. Here’s a quick rundown on the consecutive days of selldown visually.

#18 – Frasers H Trust (SGX:ACV) -50%

#17 – Frasers Comm Trust (SGX:ND8U) -51%

#16 – Sabana REIT (SGX:M1GU) -52%

#15 – Cromwell REIT SGD (SGX:CSFU) -53%

#14 – Cromwell REIT EUR (SGX:CNNU) -53%

#13 – Manulife REIT (SGX:BTOU) -53%

#12 – Lippo Mall Trust (SGX:D5IU) -55%

#11 – Prime US REIT (SGX:OXMU) -56%

#10 – Frasers L&I Trust (SGX:BUOU) -56%

#9 – Cache Log Trust (SGX:K2LU) -57%

#8 – Keppel Pacific Oak REIT (SGX:CMOU) -57%

#7 – First REIT (SGX:AW9U) -58%

#6 – IREIT (SGX:UD1U) -58%

#5 – ARA HTrust (SGX:XZL) -58%

#4 – CDL HTrust (SGX:J85) -59%

#3 – SoilbuildBiz REIT (SGX:SV3U) -68%

#2 – ESR REIT (SGX:J91U) -69%

#1 – Eagle Hospitality Trust (SGX:LIW) -77%

What’s worse is that Eagle HTrust has called for a trading halt at the time of writing and we are not sure what is going to happen next.

I have also tabulated the performances of the REITs below. It seems like the REITs are selling at very attractive prices.

NameCode11-Mar-2012-Mar-2013-Mar-2016-Mar-2017-Mar-2018-Mar-2019-Mar-20Total Drop
Eagle H Trust USDLIW-3.0%-10.9%-5.3%-13.0%2.1%-10.4%-36.3%-76.8%
ESR REITJ91U-2.0%-8.0%-9.8%-13.3%-6.9%-9.0%-19.7%-68.6%
SoilbuildBiz REITSV3U-2.2%-6.6%-7.1%-11.4%-8.6%-17.2%-15.1%-68.0%
CDL H TrustJ85-1.5%-9.4%-3.5%-10.7%-8.5%-6.6%-18.7%-58.9%
ARA H Trust USDXZL-1.7%-10.4%-6.8%-10.4%-5.8%-3.7%-19.2%-58.1%
IREIT GlobalUD1U-0.7%-6.6%-6.3%-14.3%-7.0%-13.2%-9.8%-57.9%
First REITAW9U-0.5%-6.0%-10.3%-9.0%-5.6%-10.5%-15.8%-57.7%
KepPacOak REIT USDCMOU-2.8%-10.0%-5.6%-8.4%-4.6%-14.4%-11.2%-57.0%
Cache Log TrustK2LU-3.7%-6.2%-5.8%-9.7%-6.8%-11.5%-12.9%-56.6%
Frasers L&I TrustBUOU--8.1%-7.1%-11.9%-6.0%-5.2%-17.6%-55.8%
Prime US REITOXMU-2.6%-8.1%-3.5%-8.5%-6.0%-10.6%-16.5%-55.7%
Lippo Malls TrustD5IU-0.5%-5.3%-8.9%-8.5%-10.0%-5.2%-16.4%-54.8%
Manulife REITBTOU-5.0%-7.4%1.7%-15.7%-6.7%-7.1%-13.1%-53.4%
Cromwell REIT EURCNNU-3.0%-7.2%-3.3%-13.8%6.7%-16.3%-16.4%-53.3%
Cromwell REIT SGDCSFU-2.5%-7.8%-7.0%-7.6%--12.3%-15.9%-53.1%
Sabana REITM1GU-1.2%-7.3%-6.6%-7.0%-4.6%-6.4%-18.6%-51.7%
Frasers Com TrustND8U--8.0%-5.4%-10.6%-8.7%-2.6%-16.1%-51.4%
Frasers H TrustACV-2.5%-4.3%-8.9%-7.8%-11.7%-2.4%-12.4%-50.0%
EC World REITBWCU-2.1%-2.9%-9.8%-5.8%-2.7%-8.2%-15.8%-47.3%
Utd Hampshire REIT USDODBU--20.0%-3.1%-3.2%-1.7%-7.6%-9.2%-44.8%
Starhill Global REITP40U-0.8%-7.1%-1.7%-9.6%-5.8%-10.2%-9.1%-44.3%
Far East H TrustQ5T-1.7%-6.0%-2.8%-10.4%-4.2%-5.5%-12.8%-43.3%
Ascott REITHMN-2.7%-8.3%-5.0%-8.4%-6.3%0.6%-12.2%-42.3%
OUE Com REITTS0U-1.1%-8.0%-3.7%-9.0%-5.6%-6.0%-7.9%-41.3%
Suntec REITT82U-1.8%-4.8%-5.0%-9.2%-5.1%-3.8%-10.3%-39.9%
Mapletree NAC TrustRW0U--6.3%-5.7%-9.1%-6.1%-3.6%-8.6%-39.3%
Mapletree Ind TrustME8U-2.0%-5.1%-2.9%-11.2%-10.5%-0.5%-7.0%-39.2%
Ascendas iTrustCY6U-0.7%-9.8%-11.6%-9.0%4.5%-3.5%-8.0%-38.1%
Mapletree Log TrustM44U--6.9%-1.1%-16.2%-5.5%-1.5%-6.7%-37.9%
BHG Retail REITBMGU-0.9%-3.5%-7.1%-4.8%--1.0%-20.4%-37.7%
AIMS APAC REITO5RU--4.4%-6.1%-7.3%-10.4%1.9%-11.4%-37.6%
SPH REITSK6U-1.5%-4.5%-3.7%-4.9%-8.1%-7.5%-6.8%-36.9%
Frasers Centrepoint TrustJ69U-1.7%-4.2%-6.2%-9.8%-5.6%-4.1%-4.3%-36.0%
CapitaR China TrustAU8U-1.4%-5.8%-7.7%-7.5%-4.5%--8.5%-35.4%
Keppel REITK71U0.8%-4.1%-6.8%-8.2%-5.0%-2.1%-9.6%-34.8%
Elite Com REIT GBPMXNU-0.7%-8.0%4.8%-8.3%-2.5%1.7%-19.2%-32.3%
Lendlease REITJYEU-3.1%-9.7%-11.4%-19.4%-4.0%11.5%5.6%-30.5%
Sasseur REITCRPU-1.4%-5.6%-1.5%-8.3%-1.6%-1.7%-10.2%-30.2%
Keppel DC REITAJBU-1.7%-8.6%-0.5%-11.3%-3.2%1.6%-5.4%-28.9%
ParkwayLife REITC2PU-0.3%-3.1%-5.6%-6.9%-4.4%-1.4%-7.1%-28.8%
CapitaMall TrustC38U-2.1%-3.0%-3.1%-8.3%-5.0%-3.7%-1.6%-26.8%
CapitaCom TrustC61U-2.0%-5.2%-2.7%-8.4%-4.9%-1.3%-3.3%-25.8%
Mapletree Com TrustN2IU--4.9%-3.7%-12.1%-2.8%--2.3%-25.7%
Ascendas REITA17U-0.6%-5.1%-4.4%-8.3%-5.8%0.8%-1.9%-25.4%
Frasers L&I Trust AUDBWQU-------2.3%-2.3%
Dasin Retail TrustCEDU--0.6%--0.6%---0.6%-1.9%

Why REITs get sold down? Why now and not earlier?

These are the questions I had but found no answers. I dug the insider trades and found no big players dumping the stocks. It could be the retail players dumping REITs but it is hard to accept retail can move prices so much and the trading volume was higher than normal.

Equally surprising was that there was almost no safe haven assets during this time. Bonds, gold and bitcoin got sold down too. I noticed that USD and JPY had strengthened.

It seems like people are clamouring for cash. Probably because this is not a financial crisis but a survival threat should the virus be spread to every single human being. You can’t buy instant noodles and toilet paper with stocks, REITs, bonds, or bitcoin (not yet). Even gold would face difficulty. That’s my speculation of the fear displayed in the financial markets.

I’m not sure what’s the true cause. What do you think?

Alvin Chow
Alvin Chow
CEO of Dr Wealth. Built a business to empower DIY investors to make better investments. A believer of the Factor-based Investing approach and runs a Multi-Factor Portfolio that taps on the Value, Size, and Profitability Factors. Conducts the flagship Intelligent Investor Immersive program under Dr Wealth. An author of Secrets of Singapore Trading Gurus and Singapore Permanent Portfolio. Featured on various media such as MoneyFM 89.3, Kiss92, Straits Times and Lianhe Zaobao. Given talks at events organised by SGX, DBS, CPF and many others.
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7 thoughts on “18 REITs lost 50% or more within 7 trading days”

  1. Yes, its investors hoarding cash. Retail investors preparing cash for daily needs and institutional investors preparing cash for drawdowns. Assets from all classes are falling and, as you said, no safe havens. Cash is really king now.

    Reply
  2. Hi Alvin,

    I referred to the Document : ‘Highlights of the Week’ published by The SGX for the following period and I found the following events pertaining to some REITs.

    For Week of 9 – 13 March 2020 :-
    Institutions were Net Buyers of MCT and Ascendas REIT with total values of $55mils, and Retail Investors were Net Seller with total values of $16mils.

    So,… looks like Retailers were truly Net Sellers with quite big transaction values.

    Reply

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