Frasers Property Tower

SINGAPORE: Singapore’s Real Estate Investment Trusts (REITs) have proven robust despite inflation threats, providing a steady source of dividends for income investors.

Here are four Singapore REITs with distribution yields of at least 5.4%, according to The Smart Investor.

1. Frasers Centrepoint Trust

Frasers Centrepoint Trust (FCT), a retail REIT with a diverse portfolio of nine retail malls and an office building in Singapore’s suburban regions, has demonstrated commendable performance. As of Sept 2023, its assets under management (AUM) reached approximately S$6.5 billion.

For the fiscal year ending Sept 2023, FCT reported a 3.6% YoY increase in gross revenue to S$369.7 million, with net property income (NPI) inching up 2.7% YoY to S$265.6 million.

Despite a slight dip of 0.6% YoY in distribution per unit, FCT’s trailing distribution yield remains a solid 5.4%. Recent fiscal 2024 updates reveal a high committed occupancy of 99.9%, with a 3.1% YoY increase in shopper traffic.

2. Mapletree Industrial Trust

Mapletree Industrial Trust (MIT), an industrial REIT with a global portfolio of 56 properties in the US, 85 in Singapore, and one in Japan, also exhibited resilience in its fiscal 2024 third-quarter results.

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With AUM standing at S$9.2 billion as of Dec 2023, MIT reported a 2% YoY rise in gross revenue to S$173.9 million, and NPI increased by 0.8% YoY to S$129.9 million.

MIT’s trailing distribution yield stands at 5.5%, with a high occupancy rate of 92.6% and 38.6% aggregate leverage. Positive rental reversion of 7.2% for lease renewals adds to MIT’s performance.

3. Keppel DC REIT

Keppel DC REIT, specialising in data centres across nine countries, faced a mixed set of earnings in 2023.

Despite a 1.4% YoY rise in gross revenue to S$281.2 million, net property income (NPI) decreased by 3% YoY to S$245 million due to loss allowances for its Guangdong data centres.

Distributable income slipped by 8.1% YoY, resulting in a trailing distribution yield of 5.6%. The portfolio occupancy remains high at 98.3%, with a favourable outlook driven by increasing demand in cloud computing, artificial intelligence, and the Internet of Things.

4. Mapletree Logistics Trust

Mapletree Logistics Trust (MLT), an industrial REIT with an expansive portfolio across eight countries, reported positive 3Q FY2024 earnings. With AUM at S$13.3 billion as of Dec 2023, MLT showcased a 2.1% YoY rise in gross revenue to S$184 million.

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Net property income (NPI) increased by 1.5% YoY to S$159.5 million, and distribution per unit (DPU) crept up 1.2% YoY to S$0.02253. MLT’s trailing 12-month DPU stands at S$0.0906, providing a trailing 12-month distribution yield of 5.8%.

The REIT has completed over S$900 million in acquisitions and divested eight properties, maintaining a healthy gearing ratio of 38.8%. /TISG

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