It may seem hard to believe, but the REIT sector remains one of the most dependable sources of dividends for income-driven investors.
Investors have been hit by a deluge of bad news as high interest rates and surging inflation make the headlines.
Despite these challenges, we highlighted several REITs that managed to raise their distribution per unit (DPU) last month.
And as the earnings season comes to a close, several more REITs popped up that also reported a rise in their DPUs.
This handful of REITs is not only paying out more to investors but has also reported strong operating metrics that should stand them in good stead to weather this storm.
Here are another four Singapore REITs that saw their DPUs rise.
United Hampshire US REIT (SGX: ODBU)
United Hampshire US REIT, or UHREIT, is a REIT that invests in a portfolio of grocery-anchored and necessity-based retail properties in the US.
Its portfolio consists of 21 retail properties and two self-storage properties with assets under management (AUM) of US$738.7 million as of 31 December 2022.
2022 saw the REIT post a 22.2% year on year jump in revenue to US$67.5 million.
Net property income (NPI) rose 12.2% year on year to US$47.1 million with adjusted DPU (excluding top-ups and stipulated damages) improving by 9.3% year on year to US$0.0585.
UHREIT’s portfolio enjoyed a high committed occupancy of 96.9% with a long weighted average lease expiry (WALE) of 7.5 years.
Aggregate leverage stood at 41.8% with 81.4% of its borrowings on fixed rates.
The retail REIT announced a new development initiative to build a 63,000-square-foot building in Florida and has secured a 15-year lease with Academy Sports (NASDAQ: ASO).
The opening of this new store is slated for the first quarter of 2025.
Lendlease Global Commercial REIT (SGX: JYEU)
Lendlease Global Commercial REIT, or LREIT, owns a portfolio of three core assets.
Two are located in Singapore – Jem (an office and retail property) and 313 Somerset (a prime retail mall), while the third is Sky Complex in Milan, Italy, which comprises three Grade A office buildings.
These properties have a value of S$3.6 billion as of 30 June 2022.
LREIT pulled off a commendable financial performance for its fiscal 2023’s first half (1H FY2023) ending 31 December 2022.
Gross revenue surged by 159.6% year on year to S$101.7 million while NPI improved by 157.8% year on year to S$76.4 million, principally because of the addition of Jem during the fiscal year.
DPU inched up 2.1% year on year to S$0.0245.
LREIT maintained solid operating metrics with committed occupancy at 99.8% and a WALE of 8.3 years.
The REIT also enjoyed a positive rental reversion of 2% for its retail segment.
LREIT’s gearing ratio stood at 39.2% with around 61% of its loans hedged to fixed rates.
CapitaLand India Trust (SGX: CY6U)
CapitaLand India Trust, or CLINT, is an India-focused industrial REIT with a portfolio of eight IT business parks, a logistics park, an industrial facility and three data centres across five states in India.
Its AUM stood at S$2.5 billion as of 31 December 2022.
The REIT pulled off a respectable performance for its 2022 earnings, with property income rising by 9% year on year to S$210.6 million.
NPI increased by 7% year on year to S$166.8 million while DPU edged up 5% year on year to S$0.0819.
Units of the REIT sport a 7.3% distribution yield.
CLINT saw its committed occupancy rise by five percentage points in 2022 to 92%.
Its portfolio valuation also eked out a small 0.4% year on year increase during the year. The increase would have been much higher (+11.7%) if not for the depreciation of the Indian Rupee against the Singapore Dollar.
The REIT’s gearing stood at 37% with slightly more than three-quarters of its loans on fixed rates.
However, its weighted average cost of debt stood fairly high at 5.9%.
CLINT has demonstrated a solid track record of growing its portfolio’s floor area over the years, going from 3.6 million square feet (sqft) at IPO to 15.5 million sqft as of 31 December 2022.
Looking ahead, the REIT plans to grow further through its development pipeline and third-party acquisitions.
Cromwell European REIT (SGX: CWBU)
Cromwell European REIT, or CEREIT, has a portfolio of more than 110 properties in numerous European and Nordic countries such as France, Germany, Finland, and Denmark, just to name a few.
Its portfolio value stood at €2.5 billion as of 31 December 2022.
2022 saw gross revenue rise 11% year on year to €222.1 million with NPI growing by 5.1% year on year to €136.8 million.
DPU inched up 1.3% year on year to €0.17189.
Occupancy hit a new record high of 96% with a strong positive rental reversion of 5.7% for the year.
CEREIT maintained a gearing level of 39.4% with 78% of its debt hedged or on fixed rates.
Not sure which REIT to put your money in? Use our 7-step REIT checklist to find one that fits into your retirement plan. Checklist is inside our latest FREE report “Singapore REITs Retirement Plan”. Click here to download it now.
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Disclosure: Royston Yang does not own shares in any of the companies mentioned.