If you are looking for a good REIT that can continue to pay you dividends, there are a few key attributes to watch.
One of these is the presence of a strong sponsor that can help to provide financial support should a REIT flounder.
Another attribute is the consistent and steady payment of distributions.
With REITs being known as dependable income instruments, many income-seeking investors depend on them for passive income.
Hence, a good dividend yield becomes yet another desirable aspect of a well-run REIT.
The combination of a strong sponsor and good dividend yield form the basis for a rock-solid investment that offers both resilience and a steady source of cash inflow.
Here are five REITs that are yielding almost 4% and more and also possess a strong sponsor.
Mapletree Industrial Trust (SGX: ME8U)
Mapletree Industrial Trust, or MIT, is a REIT that invests in a portfolio of industrial properties and data centres in Singapore and the US.
As of 31 March 2021, MIT had assets under management (AUM) of S$6.8 billion and its portfolio comprised 87 industrial properties in Singapore and 28 in the US.
The REIT’s sponsor is Mapletree Investments Pte Ltd (MIPL), a unit of state-owned Temasek Holdings.
As of 31 March 2020, MIPL owns and manages S$60.5 billion of properties spanning a wide array of sub-classes including office, retail and industrial, to name a few.
For its fiscal year 2021 (FY2021), the REIT reported a 10.2% increase in gross revenue to S$447.2 million.
Net property income (NPI) rose 10.4% year on year to S$351 million.
Distribution per unit (DPU) inched up 2.5% year on year to S$0.1255.
At the REIT’s last traded price of S$2.89, the REIT’s trailing dividend yield stands at 4.3%.
Mapletree Logistics Trust (SGX: M44U)
Mapletree Logistics Trust, or MLT, owns a diversified portfolio of 163 logistics properties located in countries such as Singapore, Hong Kong, Japan and Australia, to name a few.
As of 31 March 2021, the total AUM stood at S$10.8 billion.
The REIT’s sponsor is also MIPL, and MLT also announced a respectable set of earnings for FY2021.
Gross revenue rose by 14.3% year on year to S$561.1 million while NPI increased by 13.8% year on year.
DPU crept up 2.3% year on year to S$0.08326.
At the last traded share price of S$2.10, MLT’s units offer a trailing dividend yield of around 3.9%.
Ascendas India Trust (SGX: CY6U)
Ascendas India Trust, or AIT, owns seven IT business parks and one logistics park in India.
As of 31 December 2020, the REIT’s AUM stood at S$2.1 billion.
The trust is managed by Ascendas Property Fund Trustee Pte Ltd, which in turn is a wholly-owned subsidiary of real estate giant CapitaLand Limited (SGX: C31).
CapitaLand owns and manages a global portfolio worth around S$133.3 billion as of 30 September 2020.
Total property income dipped by 3% year on year for the fiscal year 2020 (FY2020) ended 31 December 2020.
Despite the above, distributable income jumped 18% year on year to S$101.3 million.
DPU increased by 8% year on year to S$0.0883. Units of AIT offer a dividend yield of 6% at the last traded price of S$1.48.
Frasers Centrepoint Trust (SGX: J69U)
Frasers Centrepoint Trust, or FCT, owns a portfolio of nine retail malls and an office building in Singapore, with an AUM of around S$6.4 billion as of 31 March 2021.
The REIT’s sponsor is Frasers Property Limited (SGX: TQ5), or FPL.
FPL is an owner and developer of properties with total assets worth S$38.7 billion as of 30 September 2020.
FCT reported a sharp increase in gross revenue of 73.8% year on year to S$173.6 million for its fiscal 2021 half year ended (1H2021).
NPI increased by the same quantum and DPU jumped by 28.4% year on year to S$0.05996.
The better numbers are attributed to the acquisition of a portfolio of five malls from AsiaRetail Funds last September.
Annualised DPU stands at S$0.11992 and the REIT’s units offer a prospective dividend yield of 4.9%.
Frasers Logistics & Commercial Trust (SGX: BUOU)
Frasers Logistics & Commercial Trust, or FLCT, owns a portfolio of logistics and commercial assets in five countries — Germany, Singapore, the UK, the Netherlands and Australia.
FLCT’s sponsor is also FPL, and the REIT owns 97 properties worth around S$6.3 billion as of 31 March 2021.
Due to its merger with Frasers Commercial Trust last April, the REIT reported a 95.1% year on year surge in revenue to S$231.7 million for 1H2021.
NPI increased by 79.3% year on year while DPU rose by 9.5% year on year to S$0.038.
FLCT’s units offer a prospective dividend yield of 5.1% based on the annualised DPU of S$0.076.
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Disclaimer: Royston Yang owns shares of Frasers Logistics & Commercial Trust.
