Just as the likes of e-commerce and cloud computing gaining traction in the structural growth opportunities, decarbonization has similar attributes that allow it to fall under the same category.
I attended the ESG Sustainability seminar conducted by Manulife REIT (“MUST”) yesterday.
It was an eye opening experience because of the limited knowledge I have on this topic yet it is one of the most pressing items we have in this world that is very much under-appreciated by investors.
The world has known of climate change for quite a while now and as the world begins to see severe weather and temperature changes more rapidly for the past few years, it is now becoming a high priority pressing agenda which the G20 nation countries are starting to focus.
There are many nations, including major cities and respected companies who are pledging net-zero emissions.
One of them is Manulife REIT, and clearly from the way it has conducted their activities have shown just how much importance they have placed on this topic itself.
Manulife’s journey started all the way as early as 2016 when they dedicated a CSR section in the annual report. In fact, they have well over 30 pages dedicated to the ESG segment in their latest 2020 annual report which is very comprehensive.
The company started to form a steering committee and since then they have rolled out frameworks and standards to comply.
While major cities in the US have approximately 13% of the buildings that are complying to the ESG standards, 8 out of 9 MUST’s properties are already in compliance.
Some, if not most of their properties are also awarded Energy and LEED Stars – a recognition which awards highly efficient green buildings.
There are evidence from the Fidelity Research that LEED-certified buildings tend to attract better quality of tenants, which corresponds to higher rents, value and occupancies over time.
In fact, in one of the studies shown, the value of LEED assets from a $ / PSF was 21.4% higher than non-LEED assets.
The race to net zero is now a priority for MUST, as with many other companies.
The goal is to have a 80% reduction in the GHG emissions by 2050 through prioritising energy efficiency and clean energy sources.
There are also increasing emphasis on regulatory reporting framework over time which will place importance on companies disclosing on the clean energy emissions and usage.
With this small step, we hope the world will become a much cleaner and energy efficient place to be in and investors along with our next generation can benefit from it.
Thanks for this. As an investor who has held this REIT right from the 2016 IPO, as well as having added and participated fully in their rights issue, I can only say that their performance has been not great
Look at the current price and this is obvious even if you adjust for accrued and reinvested dividends
Research has shown conclusively that despite that ‘feeling good and morally sound’, actual returns of high ESG rated funds have lagged behind significantly as compared to their not so highly ranked peers. This is the fact and I do not see this changing much, at least in the immediate future
Overall, the markets here do not give adequate valuation to SG REITS whose assets are predominantly abroad
The 3 American office REITS listed here as well as the likes of United Hampshire, IREIT, ELITE etc are testament to that
Nevertheless, their current dividend yields are enticing albeit associated with risks
There is at least a 200 basis points difference in terms of higher yields with currency risk being a minor headache
The inclusion of such REITS in indices might cause some valuation improvements
Garudadri
uncle168,
the gov is using elderly lives as stake to bet that we will have herd immunity in 3 to 6 months time.
if 20 people die per day in 6 month 3,600 elderly will die.
if 40 people die per day in 6 month 7,200 elderly will die.
the gov is paying lip service to healthcare workers leaving them to work to death without any measure to push down transmission rates.
the correct approach now is to ban dining in and tourist from bringing in new varients which can start new wave of infection.
covid is not a normal disease. it can reinfect you even if you kenna before. it will try to enter your lungs until it gets in and kills you irregardless of vax or not.
there is no herd immunity as the virus mutates rapidly evading both vaccine and natural immunity much like aids.
delta transmission will only peak when everyone in singapore is dead.
the gov will realise this soon as more and more people die everyday and children and young adults also start to die as the germans bring in new varients starting new wave of infection.
in 3 months time you will find those who got booster start getting infected and die very quickly as their own immune system is replaced by the waning vaccine which is also gone so the person is left with zero immune system.
the new normal or endemic is mass suicide.
opening up is pound foolish penny wise.
how much can you earn from a few thosand tourist?
how much can you lose when so many peope fall sick and die?
china is not stupid, look at europe and usa everyday so many people die.
is it worth it?
soon you will see pap elderly in hospital and the doctor just let them die because no more ecmo machine.
this will be divine retribution for the greedy gov that place money over lives.
blue collar workers will not die if we don’t open up as their work is essential but the banks and rich people will die when businesses go bankrupt.
the gov is saving the rich and letting the poor elderly die.
this cannot be right.
without a cure for covid opening up is one way ticket to hell.
keekeekee
uncle168,
a doctor likely vaxed, because they place our lives above their own even when there is risk of vaccine injury, died of covid because the gov allow covid to spread in the community hoping to reach herd immunity
i hope all the doctors in singapore when they see pap mps visit them for covid tell them to go home and rest because it is only a mild flu.
when they cannot breath tell them go home eat 2 panadol no need to go icu.
the right thing to do now is to ban dine in and tourist from bringing new variants of covid.
failing to do so would lead to massive death toll even among the vaxed youth.
keekeekee