The market continues to be at a record high and many investors are beginning to worry that valuations may have run ahead of fundamentals.
However, within the REIT space, there is still value for investors to uncover.
Despite the recent market rallies, some REITs are still offering attractive dividend yields of above 6%.
Today, we will be casting the spotlight on three of these REITs.
Unit prices are as of market close last Friday.
Frasers Logistics & Commercial Trust (SGX: BUOU)
Frasers Logistics & Commercial Trust (FLCT) focuses on logistics and commercial properties, spanning across different developed markets such as Singapore, Australia and the United Kingdom.
FLCT’s share price has been under pressure in recent times mainly due to higher borrowing costs, which affected the REIT’s distribution per unit (DPU).
For the half year ended 31 March 2025 (1HFY25), FLCT’s DPU came in at S$0.03, down 13.8% year on year (YoY).
Despite the lower DPU, FLCT is trading at a distribution yield of 6.7%.
Investors may see an additional upside when the interest rate starts to taper down.
For 1HFY25, FLCT’s overall portfolio occupancy rate came in at 93.9%, supported by favourable demand-supply environment and resilient property fundamentals.
The logistics & industrial occupancy rate remained at near-full occupancy rate of 99.6%, while the commercial portfolio occupancy rate was 84.1% as at 1HFY25.
Meanwhile, weighted average lease expiry (WALE) for the logistics & industrial portfolio came in at 4.6 years, and 4.7 years for the commercial portfolio, which resulted in an overall portfolio WALE of 4.6 years as at 1HFY25.
Mapletree Industrial Trust (SGX: ME8U)
Mapletree Industrial Trust (MIT) is an industrial-focused REIT with exposure to the data centres segment as well as high-specification properties.
For the first quarter ended 30 June 2025 (1QFY25/26), MIT’s DPU declined by 4.7% YoY to S$0.0327.
The decline was mainly attributed to the absence of the prior year’s divestment gain.
Despite the decline in DPU, MIT continues to offer a dividend yield of around 6.3%, backed by resilient rental demand especially from the data centres segment.
Average portfolio occupancy rate remained stable at 91.4% for 1Q FY25/26 and WALE continued to be healthy at 4.5 years over the same period.
MIT’s aggregate leverage ratio is expected to decrease to around 37% from 40.1% as at 30 June 2025, following the completion of the proposed divestment of three industrial properties in Singapore.
With a stronger balance sheet and rebalancing its portfolio, MIT is well positioned to benefit from long-term digitalisation trends such as cloud computing and artificial intelligence.
Mapletree Logistics Trust (SGX: M44U)
Mapletree Logistics Trust (MLT) is a pan-Asian logistics REIT with a portfolio spanning across Singapore, China, Japan, South Korea, India, Vietnam, Malaysia, and Australia.
For the first quarter ended 30 June 2025 (1QFY25/26), MLT’s DPU fell by 12.4% YoY mainly due to currency fluctuation, absence of contributions from divested assets, weaker performance in China, and higher financing costs.
Portfolio occupancy rate came in at 95.7% for the quarter and managed to record a positive rental reversion of 2.1%.
MLT’s aggregate leverage ratio held steady at 41.2% for the quarter.
Given the proactive approach by the management, MLT’s weighted average borrowing cost maintained at 2.7% per annum.
Despite the decline in DPU, logistics demand remains resilient, supporting stable cash flows.
Even at current market levels, MLT still offers an attractive distribution yield of 6.2%.
Get Smart: Don’t chase high yields alone
Even as the market continues to be trading at record highs, there are still investment opportunities especially in the REIT sector that could deliver both stability and attractive yield to investors.
Distribution yields of above 6% could provide a significant buffer for investors against volatility and allow these REITs to be comparable with bonds in terms of stability and returns.
However, investors should also weigh the distribution yield against the balance sheet strength and asset quality when handpicking REITs for investment.
Chasing high yields alone can be a significant risk.
However, established names such as FLCT, MIT and MLT continue to offer attractive dividend payouts, supported by strong fundamentals.
Investors should look into balancing yield with resiliency, positioning early for potential upside as rates start to come down.
This new 10-minute read could change how you invest this year. Inside:
5 SG dividend-paying blue chips that have quietly powered through past downturns, and could reward you handsomely in the next.
Grab the free report now. It might be the most profitable thing you read today.
Disclosure: Zheng Long does not own any of the REITs mentioned.
