4 Singapore REITs that will make your CPF investment sing

SINGAPORE: Singaporeans looking to strengthen their retirement savings through their CPF Investment Accounts (IA) might find solace in real estate investment trusts (REITs).

REITs often offer better returns than CPF’s traditional rates. While CPF’s Ordinary Account (OA) offers interest rates of 3.5% for the first S$20,000 and 2.5% thereafter, some prefer the potentially higher returns of REITs. You can invest your OA balance in REITs through your CPF Investment Account (IA).

Here are four Singapore REITs for your CPF investment portfolio, as advised by The Smart Investor.

1. Mapletree Logistics Trust

Mapletree Logistics Trust (MLT) stands tall as an industrial REIT with a diverse portfolio spanning 187 properties across eight countries. Managed by a Mapletree Investments Pte Ltd (MIPL) subsidiary, it boasts assets under management (AUM) amounting to S$13.3 billion as of Dec 31, 2023.

Despite modest fluctuations in its fiscal performance, MLT maintains an annualised distribution yield of 6%. With a portfolio occupancy rate of 95.9% and positive rental reversion, MLT offers stability coupled with growth potential.

2. Parkway Life REIT

Parkway Life REIT specialises in healthcare properties, owning 63 properties in Singapore and Japan. Backed by IHH Healthcare Berhad’s sponsor, Parkway Life REIT enjoys income certainty with extended lease renewal terms and strategic acquisition opportunities.

Reporting consistent core distribution per unit (DPU) increases, Parkway Life REIT offers a historical distribution yield of 4%, making it an attractive option for investors seeking stable returns with exposure to the healthcare sector.

3. CapitaLand Integrated Commercial Trust

CapitaLand Integrated Commercial Trust (CICT) has a diverse portfolio of retail and commercial properties across Singapore, Germany, and Australia. Managed by CapitaLand Investment Limited (CLI), its sponsor, CICT demonstrated resilience in its earnings amidst market fluctuations.

With a trailing distribution yield of 5.6% and strong operating metrics, including high portfolio occupancy and positive rent reversion rates, CICT presents investors with a balanced opportunity for income and growth.

4. Frasers Centrepoint Trust

Focused on retail properties within Singapore, Frasers Centrepoint Trust (FCT) owns 10 retail malls and an office building. Supported by its sponsor, Frasers Property Limited (FPL), FCT showcases a steady performance despite economic challenges.

Offering a trailing distribution yield of 5.5%, FCT remains an attractive option for investors seeking exposure to Singapore’s retail sector. Recent strategic acquisitions, such as increasing its stake in NEX Mall, further boosted its growth prospects.       /TISG

Read also: High-Yield! 4 Singapore REITs with at least 5.4% distribution yields