The REIT universe offers an impressive variety of REITs to suit almost any investor’s palate.
But if you’re looking for REITs that offer reliability and certainty, it’s good to stick with recognisable names that come with a strong sponsor.
It also helps if the REIT has a great track record of paying out consistent distributions in the past.
With the recent sell-down in the REIT space, many attractive bargains have emerged.
Here are five reliable names that are offering a distribution yield exceeding 5.7%.
Mapletree Logistics Trust (SGX: M44U)
Mapletree Logistics Trust, or MLT, owns a portfolio of 185 properties spread out over eight countries with assets under management (AUM) of S$13 billion as of 30 June 2022.
The logistics REIT has done well and reported a strong set of numbers for its fiscal 2023’s first quarter (1Q2023).
Gross revenue rose 14.6% year on year to S$187.7 million while net property income (NPI) increased by 13.2% year on year to S$163.2 million.
Distribution per unit (DPU) was up by 5% year on year to S$0.02268.
MLT’s trailing 12-month DPU stood at S$0.08894, giving its units a trailing distribution yield of 6%.
The REIT also reported encouraging operating statistics, with a high occupancy rate of 96.8% as of 30 June 2022.
Average rental reversion for the quarter was positive 3.4% and the REIT had 80% of its debt hedged to fixed rates.
Frasers Logistics & Commercial Trust (SGX: BUOU)
Frasers Logistics & Commercial Trust, or FLCT, owns 105 properties with an AUM of S$6.5 billion spread out across the UK, Singapore, Australia, Germany, and the Netherlands.
The REIT announced a respectable set of earnings for its fiscal 2022’s first half (1H2022) ending 31 March 2022.
Revenue inched up 1.7% year on year to S$235.7 million while adjusted NPI rose 3.6% year on year to S$180.1 million.
DPU edged up 1.3% year on year to S$0.0385.
Coupled with 2H2021’s DPU of S$0.0388, FLCT’s trailing 12-month DPU came in at S$0.0773, giving its units a trailing distribution yield of 7%.
The REIT enjoys a low gearing of just 29.2% with 80.6% of its borrowings on fixed rates, thus mitigating against a sharp rise in borrowing costs arising from higher interest rates.
CapitaLand Ascendas REIT (SGX: A17U)
CapitaLand Ascendas REIT, or CLAS, is an industrial REIT that owns a portfolio of 227 properties in Singapore, the US, Australia, and the UK/Europe.
AUM stood at S$16.6 billion as of 30 June 2022.
For the REIT’s 1H2022, gross revenue increased 13.7% year on year to S$666.5 million with NPI rising by 7% year on year to S$476.9 million.
DPU inched up 2.8% year on year to S$0.07873.
CLAS’ 2H2021 DPU came in at S$0.07598, and the REIT’s trailing 12-month DPU stood at S$0.15471.
Its units offer a trailing 12-month distribution yield of 6%.
The REIT maintains a healthy balance sheet with gearing at 36.7% and has 80% of its debt on fixed rates.
CapitaLand Integrated Commercial Trust (SGX: C38U)
CapitaLand Integrated Commercial Trust, or CICT, is a retail and commercial REIT that owns 21 properties in Singapore, two in Germany, and three in Australia.
Total AUM stood at S$24.2 billion as of 31 December 2021.
For 1H2022, CICT saw its gross revenue rise 6.5% year on year to S$687.6 million with NPI improving by 6.2% year on year to S$501.6 million.
The REIT’s trailing 12-month DPU came in at S$0.1044, giving its units a trailing distribution yield of 5.8%.
CICT’s aggregate leverage stood at 40.6% as of 30 June 2022 with 81% of its borrowings on fixed rates. Its average cost of debt remained low at just 2.4%.
Keppel DC REIT (SGX: AJBU)
Keppel DC REIT owns a portfolio of 21 data centres across nine countries with an AUM of S$3.5 billion as of 30 June 2022.
The REIT reported a good set of earnings for 1H2022, with gross revenue inching up 0.3% year on year to S$135.5 million and distributable income jumping 8.2% year on year to S$91.1 million.
DPU crept up 2.5% year on year to S$0.05049.
For 2H2021, DPU came in at S$0.04927, giving Keppel DC REIT a trailing 12-month DPU of S$0.09976.
At a unit price of S$1.60, the trailing distribution yield stands at 6%.
The REIT had aggregate leverage of 35.3% as of 30 June with a low average cost of debt of 1.9%.
Around 76% of the REIT’s borrowings are in 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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Disclaimer: Royston Yang owns shares of Keppel DC REIT and Frasers Logistics & Commercial Trust.
