Several REITs have recently reported their latest quarterly results or business updates.
It’s the last report card that investors will see before 2021 comes to a close.
With the global economy on the mend, many REITs are seeing a recovery.
Investors should be glad that a number of REITs have reported rising revenue and net property income (NPI), while chalking up year on year growth in distribution per unit (DPU).
A handful has managed to do even better by announcing double-digit year on year DPU jumps.
Here are four REITs that have latched on strongly to the recovery theme and reported admirable numbers.
Suntec REIT (SGX: T82U)
Suntec REIT owns a portfolio of retail and commercial properties in both Singapore, the UK and Australia.
The REIT’s portfolio includes the Suntec City Mall, a majority interest in Suntec City Convention Centre, and a 33.3% stake in One Raffles Quay, as well as stakes in commercial builds in Melbourne, Adelaide and London.
The REIT provided a business update for its fiscal 2021 third quarter (3Q2021).
Gross revenue increased by 16.5% year on year to S$92.7 million while NPI surged by 45.5% year on year to S$68.8 million.
The REIT saw higher distributable income resulting from contributions from new acquisitions such as the Nova properties, Minster Building, and 477 Collins Street.
DPU for the quarter jumped by 20.8% year on year to S$0.02232.
Suntec REIT’s gearing is on the high side at 44.3% but its cost of debt remains low at 2.32%.
Suntec City’s committed occupancy stood at 95.5%, higher than 92.1% for the overall CBD area. Passing rent per square foot also inched up to S$9.08 from S$8.78 a year ago.
Mapletree Industrial Trust (SGX: ME8U)
Mapletree Industrial Trust, or MIT, invests in industrial properties in Singapore and data centres in the US.
As of 30 September 2021, total assets under management (AUM) stood at S$8.5 billion, and the REIT owned 86 properties in Singapore and 57 properties in the US.
MIT reported its fiscal 2022 first half (1H2022) earnings recently.
Gross revenue surged by 40.1% year on year for 1H2022 to S$283.6 million, driven by the consolidation of revenue from the acquisition of 29 data centres in the US.
NPI increased by 40.4% year on year while DPU improved by 14.2% year on year to S$0.0682.
With these acquisitions, the REIT now has 53% of its AUM composed of data centres, an asset class that is demonstrating resilient growth.
MIT’s AUM is also evenly split between Singapore and the US.
Aggregate leverage has jumped to 39.6% as of 30 September 2021 compared to 31% in the previous quarter due to the aforementioned acquisitions.
Mapletree North Asia Commercial Trust (SGX: RW0U)
Mapletree North Asia Commercial Trust, or MNACT, owns a portfolio of 13 commercial properties in China, Hong Kong SAR, Japan, and South Korea.
As of 30 September 2021, the REIT’s AUM stood at S$8.4 billion.
Gross revenue improved by 13.3% year on year to S$215.4 million while NPI climbed by 15.8% year on year to S$161.9 million.
The better results were due to lower rental reliefs given to retail tenants as footfall improved at its Festival Walk mall in Hong Kong SAR.
Contributions from acquisitions in Japan and South Korea also helped to bump up revenue.
DPU jumped by 19.1% year on year to S$0.03426.
MNACT’s portfolio enjoyed high occupancy of 97.9% for the quarter with the top 10 tenants accounting for 38% of gross rental income.
The REIT manager intends to continue sourcing for yield-accretive acquisitions to drive the growth of the REIT.
Frasers Centrepoint Trust (SGX: J69U)
Frasers Centrepoint Trust, or FCT, is a suburban retail mall owner with a portfolio of nine retail malls and an office building in Singapore.
AUM stands at S$6.1 billion as of 30 September 2021 and the retail portfolio comprises around 2.2 million square feet of net lettable area.
For its fiscal year 2021 (FY2021) ended 30 September 2021, gross revenue more than doubled year on year to S$341.1 million.
The big jump was due to the inclusion of a full year financial performance from the five malls acquired from ARF, as well as lower rental rebates granted to tenants.
NPI surged by 122.4% year on year while DPU rose by 33.7% year on year to S$0.12085.
Retail portfolio occupancy remained healthy at 97.3% although rental reversion was slightly negative at -0.6%.
The good news is that tenants’ sales have largely recovered, dipping just 2% to 7% below pre-pandemic levels in the fiscal year 2019.
The gearing level remains low at 33.3% and FCT’s all-in cost of debt stands at 2.2%.
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Disclaimer: Royston Yang owns shares of Suntec REIT and Mapletree Industrial Trust.
