There are brighter days ahead as borders reopen and economies sputter back to life.
Back home, the easing of COVID-19 measures has brought relief to a wide swath of businesses.
As companies see higher demand for goods and services, REITs also stand to benefit as the financial health of their tenants improves.
Already, several REITs have reported healthy increases in revenue, net property income (NPI) and distribution per unit (DPU).
Here are four such REITs that managed to grow their DPU in their recent earnings release.
Mapletree Industrial Trust (SGX: ME8U)
Mapletree Industrial Trust, or MIT, has total assets under management (AUM) of S$8.8 billion as of 31 March 2022.
The industrial REIT owns 86 properties in Singapore and 57 in the US comprising a mix of data centres, light industrial buildings, and business parks.
For its fiscal 2022 (FY2022) ended 31 March 2022, MIT reported a 36.4% year on year jump in gross revenue to S$610.1 million.
NPI improved by 34.5% year on year to S$472 million while DPU increased by 10% year on year to S$0.138.
MIT’s units sport a trailing distribution yield of 5.4%.
Overall portfolio occupancy stayed healthy at 94%, up from 93.6% in the previous quarter.
The REIT’s aggregate leverage stood at 38.4% with a low cost of debt of 2.4%.
The redevelopment of Kolam Ayer 2 is proceeding smoothly, with expected completion in the second half of this year and the first half of next year for all three buildings.
Mapletree Logistics Trust (SGX: M44U)
Mapletree Logistics Trust, or MLT, owns a portfolio of 183 properties spread out over eight countries with a total AUM of S$13.1 billion as of 31 March 2022.
For FY2022, MLT saw a 20.9% year on year jump in gross revenue to S$678.5 million while NPI rose 18.6% year on year to S$592.1 million.
DPU inched up 5.5% year on year to S$0.08787, giving MLT’s units a trailing distribution yield of 5%.
The REIT saw its portfolio value rise by 21.1% year on year due to acquisitions and a S$572 million portfolio revaluation gain.
Net asset value per unit has also climbed 11.3% year on year to S$1.48.
Portfolio occupancy remained healthy at 96.7% as of 31 March 2022, and the REIT enjoyed an average rental reversion of 2.9% for the quarter.
Aggregate leverage stood at 36.8%, giving MLT sufficient debt headroom to lever up for further acquisitions.
Suntec REIT (SGX: T82U)
Suntec REIT owns a portfolio comprising retail and commercial assets such as Suntec City Mall, a one-third interest in One Raffles Quay, and stakes in various commercial buildings in Australia and the UK.
For the REIT’s fiscal 2022’s first quarter (1Q2022) business update, gross revenue rose 13.9% year on year to S$99.2 million while NPI climbed by 24.9% year on year to S$74.3 million.
DPU rose 16.9% year on year to S$0.02391, mainly due to new contributions from the recently-acquired Minster Building in the UK and higher rental income from both Suntec City’s office and mall.
Suntec REIT’s aggregate leverage stood at 43.3% as of 31 March 2022 with a low cost of debt of 2.31%.
Elite Commercial REIT (SGX: MXNU)
Elite Commercial REIT invests in commercial assets located in the UK and its portfolio comprises 155 predominantly freehold properties with a total value of £500.1 million.
The REIT reported a 39.4% year on year jump in revenue for 1Q2022 to £9.2 million, while distributable income climbed by 36.2% year on year to £6.1 million.
DPU edged up 4.9% year on year to 1.28 pence.
Based on the annualised DPU of 5.12 pence, Elite Commercial REIT’s units offer a forward distribution yield of around 7.7%.
The lease break option has been removed from 109 of the REIT’s properties, providing better stability and visibility for 85.2% of the REIT’s portfolio based on gross rental income.
The REIT’s gearing ratio stood at 42.8% as of 31 March 2022 with a low borrowing cost of 2.1%.
Elite Commercial REIT’s portfolio enjoyed full occupancy with a long weighted average lease expiry of 5.5 years.
A mid-year valuation exercise will be carried out to update the REIT’s portfolio based on the removal of the lease breaks, and the manager is looking forward to inflation-linked rental escalations of between 1% to 5% at the upcoming rent review in April 2023.
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Disclaimer: Royston Yang owns shares of Mapletree Industrial Trust and Suntec REIT.