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    Home»REITs»5 REITs That Chalked Up Double-Digit Returns Year-to-Date
    REITs

    5 REITs That Chalked Up Double-Digit Returns Year-to-Date

    These five REITs' share prices have performed well this year. Could investors be in for more gains?
    Royston YangBy Royston YangOctober 27, 20215 Mins Read
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    REITs are traditionally known as income instruments that pay out a dependable dividend.

    A REIT that seeks to grow its asset base over time may also raise its dividends over time.

    And with higher distributions, unitholders in such REITs not only receive a more bountiful stream of passive income but also enjoy capital appreciation as the unit price rises.

    Hence, a REIT investor can enjoy the best of both worlds — rising dividends and also a climbing unit price.

    One way to look for suitable REITs to invest in is to monitor their unit price appreciation.

    Such a rise may be indicative of positive corporate developments for the REIT, thereby making investors more optimistic about its prospects.

    Here are five REITs that recorded double-digit returns thus far this year.

    ESR-REIT (SGX: J91U)

    ESR-REIT is an industrial REIT that owns a portfolio of 58 properties across Singapore.

    The properties are in different sectors such as business parks, logistics, and general industrial and have an asset under management (AUM) of around S$3.2 billion as of 30 June 2021.

    Year to date, ESR-REIT’s unit price has advanced by 20%.

    The REIT reported a good set of numbers for its fiscal 2021 first half (1H2021).

    Gross revenue inched up 5.4% year on year to S$119.8 million while net property income (NPI) increased by 8.4% year on year to S$87 million.

    ESR-REIT’s distribution per unit (DPU) jumped by 14.3% year on year to S$0.01554.

    The REIT recently announced a proposed merger with ARA Logos Logistics Trust (SGX: K2LU) to become the fifth-largest Singapore REIT by assets.

    OUE Commercial REIT (SGX: TS0U)

    OUE Commercial REIT, or OUECR, has a total AUM of S$5.8 billion as of 30 June 2021.

    The REIT owns a diversified portfolio of seven properties in the commercial and hospitality space.

    OUECR’s unit price has advanced by around 21.1% year to date to S$0.46.

    For 1H2021, revenue dipped by 6% year on year to S$133.5 million while NPI slipped by 3.1% year on year to S$109 million.

    DPU, however, increased by 23% year on year to S$0.0123 as the same period last year saw an amount of S$10.8 million retained because of the pandemic.

    The REIT was recently included in the FTSE EPRA Nareit Global Real Estate Index series on 20 September 2021.

    EC World REIT (SGX: BWCU)

    EC World REIT is a Chinese logistics and e-commerce REIT with a portfolio of eight properties.

    The REIT’s unit price has climbed by 14.1% since the start of this year.

    For the second quarter of 2021 (2Q2021), EC World REIT reported that gross revenue inched up 1.2% year on year to S$31.2 million.

    NPI increased marginally to S$27.9 million while DPU remained flat year on year at S$0.01532.

    Aggregate leverage stood at 37.6% for the REIT as of 30 June 2021.

    Occupancy remained very high at 99.1% and the REIT enjoyed stable income contribution across all sectors.

    AIMS APAC REIT (SGX: O5RU)

    AIMS APAC REIT owns a diversified portfolio of 28 industrial properties, of which 26 are located in Singapore and two are in Australia.

    Year to date, the REIT’s unit price has climbed by 19% to S$1.50.

    The REIT reported a sparkling set of numbers for 1H2021 with revenue, NPI and DPU increasing by double digits year on year.

    Portfolio occupancy remained healthy at 97.3%, above Jurong Town Corporation’s industrial average of 90.1%.

    AIMS APAC REIT signed 26 leases during its latest quarter amounting to 6.2% of its net lettable area.

    The REIT’s leverage remained low at just 24.7% with the cost of debt at 2.8%.

    Recently, the REIT acquired Woolworths HQ at S$454 million through a combination of debt financing and the issuance of perpetual securities.

    This acquisition is expected to provide a 4.7% uplift to DPU.

    Sabana REIT (SGX: M1GU)

    Sabana REIT owns a diversified portfolio of 18 properties with an AUM of around S$900 million as of 30 June 2021.

    The REIT’s unit price has surged by 22% year to date to S$0.44.

    As of 30 September 2021, portfolio occupancy has improved to 85.3%, the highest since early 2018.

    Rental reversion averaged 11% for the first nine months of 2021, and the REIT recently removed its Shari’ah compliance on 21 October.

    Aggregate leverage stood at 34.8% as of 30 September 2021 with an average cost of debt of 3.3%.

    The REIT’s new NTP+ mall has attained 100% occupancy since its opening in 2Q2021 and asset rejuvenation initiatives have also been undertaken at various properties to attract tenants.

    Here are 5 cash-rich companies so healthy, they can pay you dividends for life. The names of these SGX stocks are in our special FREE report. Download it here and start building your dream retirement portfolio today!

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    Disclaimer: Royston Yang does not own shares in any of the companies mentioned.

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