It is always a great feeling to have some spare cash.
This cash could come from a nice bonus or be part of the dividends you receive regularly from the portfolio of investments you have.
Rather than spend the cash, you can consider reinvesting it so that it will generate even more dividends.
And one great asset class for regular, dependable dividends is REITs.
REITs are bundles of real estate that have been packaged together and are managed professionally.
Their requirement to pay out at least 90% of their profits as distributions makes them perfect income instruments.
Here are five Singapore REITs sporting distribution yields of 5.5% or more that can comfortably help you beat inflation.
Mapletree Industrial Trust (SGX: ME8U)
Mapletree Industrial Trust, or MIT, is an industrial REIT with a portfolio of 85 properties in Singapore and 56 in the US.
MIT’s total assets under management (AUM) stood at S$8.8 billion as of 30 June 2023.
The industrial REIT reported a mixed set of earnings for its fiscal 2024 first quarter (1Q FY2024) ending 30 June 2023.
Gross revenue inched up 1.7% year on year to S$170.6 million with net property income (NPI) edging up 0.7% year on year to S$130.8 million.
Distribution per unit (DPU), however, dipped by 2.9% year on year to S$0.0339 because of higher borrowing costs and an enlarged unit base from the REIT’s distribution reinvestment plan.
MIT’s trailing 12-month DPU stood at S$0.1347, giving its units a trailing distribution yield of 6%.
Back in May, the REIT announced the acquisition of its first data centre in Osaka, Japan, for JPY 52 billion.
MIT has a gearing ratio of 38.2% and enjoyed positive rental reversion of 5.3% for renewal leases.
CapitaLand Ascendas REIT (SGX: A17U)
CapitaLand Ascendas REIT, or CLAR, is Singapore’s oldest industrial REIT with a portfolio of 229 properties across Singapore, the US, Australia, the UK, and Europe.
Its AUM stood at S$17 billion as of 30 June 2023.
CLAR also reported a mixed performance for 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.
DPU, however, slid by 2% year on year to S$0.07719 because of higher borrowing costs.
CLAR’s trailing 12-month DPU came in at S$0.15644, giving its units a trailing distribution yield of 5.7%.
The REIT’s aggregate leverage stood at just 36.7% with an average all-in cost of debt of 3.3%.
The portfolio enjoyed a positive rental reversion of 18% for the second quarter of 2023 and CLAR has ongoing projects costing S$776.5 million to enhance its portfolio.
Frasers Logistics & Commercial Trust (SGX: BUOU)
Frasers Logistics & Commercial Trust, or FLCT, owns a portfolio of 107 industrial and commercial properties across five developed markets with an AUM of S$6.8 billion.
The REIT reported a downbeat performance for its fiscal 2023 first half (1H FY2023) ending 31 March 2023.
Revenue fell by 11.7% year on year to S$208 million while NPI declined by 13.4% year on year to S$155.9 million.
DPU fell by 8.6% year on year to S$0.0352.
The weaker performance was because of the divestment of Cross Street Exchange last year along with the depreciation of foreign currencies against the Singapore Dollar.
Trailing 12-month DPU stood at S$0.0729, giving FLCT’s units a trailing distribution yield of 6.2%.
For its fiscal 2023 third quarter business (3Q FY2023) update, FLCT reported a healthy portfolio occupancy rate of 96.2%.
Aggregate leverage was also low at just 28.6% with a low cost of borrowing of 2%.
AIMS APAC REIT (SGX: O5RU)
AIMS APAC REIT, or AAREIT, is an industrial REIT with 29 properties in Singapore (26) and Australia (3).
The REIT had total assets of S$2.4 billion as of 30 June 2023.
AAREIT reported an encouraging set of earnings for 1Q FY2024.
Revenue increased by 4.5% year on year to S$43.2 million while NPI improved by 4.2% year on year to S$32.3 million.
DPU inched up 1.3% year on year to S$0.0231.
The REIT’s trailing 12-month DPU was S$0.09974, giving its units a trailing distribution yield of 7.9%.
Portfolio occupancy stood high at 98.1% with a positive rental reversion of 38% for the quarter.
The REIT enjoyed a healthy gearing ratio of just 32.9% with 87% of its loans hedged to fixed rates.
Frasers Centrepoint Trust (SGX: J69U)
Frasers Centrepoint Trust, or FCT, is a suburban retail REIT with a portfolio of 10 retail malls and an office building in Singapore.
FCT’s AUM stood at S$6.9 billion as of 31 March 2023.
The retail REIT reported a 6.5% year on year increase in revenue for 1H FY2023 to S$187.6 million.
NPI also improved by 5.7% year on year to S$138 million.
DPU, however, remained flat year on year at S$0.0613 because of rising interest rates and higher operating costs.
FCT’s trailing 12-month DPU came in at S$0.12221, giving its units a trailing distribution yield of 5.5%.
Its 3Q FY2023 business update saw occupancy rate improve to 98.7% year on year with both shopper traffic and tenant sales seeing a 16% and 5% year on year increase, respectively.
The retail REIT also announced the divestment of Changi City Point for S$338 million.
This move will reduce its aggregate leverage from 40.2% to 37.1% and reduce its cost of borrowing from 3.7% to 3.6%.
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Disclosure: Royston Yang owns shares of Mapletree Industrial Trust and Frasers Logistics & Commercial Trust.