There is nothing nicer than receiving dividends credited to your bank account.
This stream of passive income is useful to boost your active income and can also act as a source of retirement income as you approach your golden years.
REITs are a great investment vehicle for income investors as they need to pay out at least 90% of their profits to enjoy tax benefits.
By building a collection of REITs within your investment portfolio, you can slowly and steadily grow your dividend income.
Some REITs pay out distributions quarterly while others dole out their cash half-yearly.
Here are four REITs that are scheduled to pay out their distributions this month.
Keppel DC REIT (SGX: AJBU)
Keppel DC REIT is a data centre REIT that owns 21 data centres across nine countries with assets under management (AUM) of S$3.5 billion as of 30 June 2022.
The REIT is paying out a distribution per unit (DPU) of S$0.05049 for its fiscal 2022’s first half (1H2022) on 9 September.
1H2022 saw gross revenue inch up 0.3% year on year to S$135.5 million.
Net property income (NPI), however, dipped by 0.5% year on year to S$123.2 million due to higher property expenses.
Because of higher finance income from the REIT’s investment in M1’s debt securities, DPU increased by 2.5% year on year to S$0.05049.
Keppel DC REIT’s aggregate leverage stood at 35.3% as of 30 June 2022 with an average cost of debt of 1.9%, giving it sufficient room to tap on more borrowings for further acquisitions.
The REIT has more than S$2 billion worth of potential data centre assets for acquisition from its sponsor Keppel Corporation Limited’s (SGX: BN4) subsidiary Keppel T&T as well as its private data centre funds.
Mapletree Industrial Trust (SGX: ME8U)
Mapletree Industrial Trust, or MIT, is an industrial REIT with 141 properties in its portfolio spread out across Singapore and the US.
AUM stood at S$8.8 billion as of 30 June 2022 and data centres made up slightly more than half of the REIT’s total assets.
MIT reported an admirable set of financial numbers for its fiscal 2023’s first quarter (1Q2023) ended 30 June 2022.
Gross revenue jumped 31% year on year to S$167.8 million while NPI increased by 24% year on year to S$129.9 million.
DPU rose 4.2% year on year to S$0.0349, and this DPU will be paid on 9 September.
MIT enjoys a high occupancy rate of 95.3% and its aggregate leverage stands at 38.4%.
The industrial REIT is currently redeveloping the Kolam Ayer 2 cluster of flatted factories into Hi-Tech buildings that will be ready by the first half of the calendar year 2023.
Lendlease Global Commercial REIT (SGX: JYEU)
Lendlease Global Commercial REIT, or LREIT, is a retail cum commercial REIT with a portfolio of two retail malls in Singapore (Jem and 313 @ Somerset), and three office properties in Milan, Italy.
The properties have a total value of S$3.6 billion as of 30 June 2022.
LREIT announced a respectable performance for its fiscal 2022 (FY2022) ended 30 June 2022.
Gross revenue climbed 29.3% year on year to S$101.7 million with NPI surging by 32.7% year on year to S$75.5 million.
DPU edged up 3.7% year on year to S$0.0485 for FY2022.
For the second half of FY2022, DPU increased by 4.9% year on year to S$0.0245.
Of this S$0.0245, an advance distribution of S$0.011371 had already been paid, so the remaining S$0.013128 will be paid out on 14 September.
Tenant sales have surpassed pre-COVID levels for the most recent quarter while its office portfolio in Italy continues to enjoy stable cash flow with leases in place till 2032.
Daiwa House Logistics Trust (SGX: DHLU)
Daiwa House Logistics Trust, or DHLT, is a Japan-focused industrial REIT with a portfolio of 14 modern logistics properties valued at around JPY 81.1 billion as of 31 December 2021.
DHLT was listed less than a year ago and has reported its first set of financials since its IPO for the period from 26 November 2021 to 30 June 2022.
Gross revenue dipped 3.6% lower than forecast at S$38.9 million while NPI was 4.5% below its forecast, coming in at S$30 million.
DPU, however, stood at S$0.0309 and was in line with the industrial REIT’s original forecast.
This distribution was paid out on 6 September.
DHLT enjoyed a high occupancy of 98.6% across its portfolio along with a long weighted average lease expiry of 6.8 years.
With aggregate leverage at 34%, the REIT has ample debt headroom for yield-accretive acquisitions in the future.
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Disclaimer: Royston Yang owns shares of Keppel DC REIT and Mapletree Industrial Trust.
