The REIT sector has been taking it on the chin in the past 12 months.
A combination of elevated inflation and surging interest rates has dampened demand for the asset class as investors worry about falling distributions.
Despite these troubles, several REITs have proven resilient as they navigate these rough waters.
They continue to pay out dependable distributions that income-seeking investors can rely on to generate a stream of passive income.
Here are five such Singapore REITs with distribution yields touching 5.4% or higher that you can add to your buy watchlist.
Mapletree Logistics Trust (SGX: M44U)
Mapletree Logistics Trust, or MLT, is an industrial REIT with a portfolio of 193 properties across eight countries with assets under management (AUM) of S$13.5 billion as of 30 June 2023.
For its fiscal 2024’s first quarter (1Q FY2024) ending 30 June 2023, MLT saw gross revenue dip 2.9% year on year to S$182.2 million because of higher finance costs and weaker exchange rates.
Net property income (NPI) fell by 3.1% year on year to S$158.1 million.
However, distribution per unit (DPU) inched up 0.1% year on year to S$0.02271.
The logistics REIT’s trailing 12-month (TTM) DPU came in at S$0.09014 with a TTM distribution yield coming in at 5.4%.
MLT maintained a high portfolio occupancy rate of 97.1% and registered a positive rental reversion of 4.2% for its latest quarter.
Its aggregate leverage stood at 39.5% with a low cost of debt at 2.5% with 82% of its borrowings on fixed rates.
Frasers Centrepoint Trust (SGX: J69U)
Frasers Centrepoint Trust, or FCT, is a pure-play Singapore suburban retail REIT with a portfolio of 10 retail malls and one office property.
Its AUM stood at S$6.9 billion as of 31 March 2023.
The retail REIT paid out a TTM DPU of S$0.12221, giving its units a TTM distribution yield of 5.6%.
FCT released its fiscal 2023’s third quarter (3Q FY2023) business update for the period ending 30 June 2023.
Retail committed occupancy remained high at 98.7% with shopper traffic and tenant sales coming in strong for 3Q FY2023.
Shopper traffic and tenant sales increased by 16% and 5% year on year, respectively.
FCT’s gearing ratio stood at 40.2% with an all-in cost of borrowing of 3.7%.
The REIT recently commenced the asset enhancement initiative (AEI) at Tampines 1 Mall and is scheduled to complete it by 3Q 2024 with more than 90% of the AEI spaces being pre-committed to date.
CapitaLand Ascendas REIT (SGX: A17U)
CapitaLand Ascendas REIT, or CLAR, is Singapore’s largest industrial REIT with an AUM of S$17 billion as of 30 June 2023.
Its portfolio comprises 230 properties across Singapore, the US, Australia, the UK, and Europe.
For the first half of 2023 (1H 2023), gross revenue increased by 7.7% year on year to S$718.1 million while NPI improved by 6.7% year on year to S$508.8 million.
The REIT saw increased contributions from acquisitions and positive rental reversion of 14.2% for renewed leases.
However, rising interest rates and a larger pool of units led to a 2% year on year decline in DPU to S$0.07719 for 1H 2023.
CLAR’s TTM DPU stood at S$0.15644, giving its units a TTM distribution yield of 5.6%.
The industrial REIT’s portfolio occupancy remained fairly high at 94.4%.
Aggregate leverage stood at 36.7% with an average cost of debt of 3.3%.
The REIT maintained 81.5% of its loans on fixed rates.
CLAR has several ongoing projects worth S$232.9 million across Singapore, Australia, and the US that should be completed by the end of this year.
CapitaLand Integrated Commercial Trust (SGX: C38U)
CapitaLand Integrated Commercial Trust, or CICT, is a retail and commercial REIT with a portfolio of 21 properties in Singapore, two in Germany, and three in Australia.
The REIT’s AUM stood at S$24.2 billion as of 31 December 2022.
CICT reported a strong set of earnings for 1H 2023, with gross revenue rising 12.7% year on year to S$774.8 million.
NPI improved by 10.1% year on year to S$552.3 million.
However, higher finance costs from additional borrowings for acquisitions, along with higher interest rates, caused DPU to inch up just 1.5% year on year to S$0.053.
CICT’s TTM DPU stood at 0.1066 and its units’ TTM distribution yield stood at 5.5%.
The REIT’s operating metrics came in resilient as portfolio occupancy stood at 96.7% while one million square feet of net lettable area was renewed or leased out in 1H 2023.
Both its retail and commercial segments also enjoyed positive rental reversions of 6.9% and 9.6%, respectively.
Gearing stood at 40.4% with 78% of the REIT’s borrowings on fixed rates.
Mapletree Industrial Trust (SGX: ME8U)
Mapletree Industrial Trust, or MIT, is an industrial REIT with an AUM of S$8.8 billion as of 30 June 2023.
Its portfolio consists of 85 properties in Singapore and 56 in the US.
MIT reported a mixed set of earnings for 1Q FY2024.
Revenue rose 1.7% year on year to S$170.6 million but DPU slid 2.9% year on year to S$0.0339 because of a larger unit base and higher finance costs.
The TTM DPU stood at S$0.1347, giving the REIT’s units a TTM distribution yield of 6%.
Despite this, the occupancy rate remained high at 93.3% and the portfolio enjoyed an average positive rental reversion of 5.3% for renewed leases.
MIT also announced the acquisition of an Osaka data centre back in May 2023 which will be completed by 3Q 2023 and help to boost its DPU.
The aggregate leverage stood at 38.2% with an all-in cost of debt of 3.5% as of 30 June 2023.
MIT had 78% of its borrowings on fixed rates and has just 3.3% of its debt up for refinancing in FY2024.
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Disclosure: Royston Yang owns shares of Mapletree Industrial Trust.
