Singapore REITs continue to grapple with challenges posed by unfavourable foreign exchange rates, coupled with elevated borrowing costs as benchmark interest rates remain at a two-decade high.
As such, it’s no surprise to see most REITs reporting year-on-year declines in distribution payouts for their latest earnings.
However, six Singapore REITs managed to defy the odds, posting an improvement in their distributions despite the challenging environment.
1. CapitaLand India Trust (SGX: CY6U)
CapitaLand India Trust (CLINT) has strategically positioned itself to capitalise on the rapid growth of India’s IT sector, and the expanding logistics and industrial asset classes.
In addition, CLINT has been actively diversifying its portfolio into emerging asset classes such as data centres.
As of 30 June 2024, CLINT’s portfolio boasts a diversified range of assets, including 10 IT business parks, one logistics park, three industrial facilities, and four data centre developments located across five major Indian cities.
In the first half of 2024 (1H 2024), CLINT delivered a robust financial performance, with total property income and net property income increasing by 23% and 21% year on year, respectively, to S$136 million and S$104 million.
This growth was driven by higher income from existing properties, newly completed properties, and acquired assets.
Consequently, the business trust delivered a distribution per unit (DPU) of S$0.0364, representing an 8% year-on-year increase.
2. CapitaLand Integrated Commercial Trust (SGX: C38U)
CapitaLand Integrated Commercial Trust (CICT), Singapore’s first and largest-listed REIT, has a diversified portfolio of retail and office properties.
Currently, its portfolio comprises 26 properties, with 21 located in Singapore, two in Germany, and three in Australia.
For 1H’23, CICT reported a 2% year-on-year increase in gross revenue, reaching S$792 million.
This growth was primarily driven by the improved performance of existing properties which was partially offset by the absence of Gallileo revenue due to an ongoing asset enhancement initiative.
Notably, property operating expenses decreased by 6% compared to a year ago, attributed to lower property management reimbursements under a new agreement along with reduced utilities expenses.
Consequently, net property income rose by 5% year on year to S$582 million.
As a result, DPU for the period grew by 2.5% year on year to S$0.0543.
3. Far East Hospitality Trust (SGX: Q5T)
Far East Hospitality Trust (FEHT) holds a diversified portfolio of 12 hotels and serviced residences, collectively offering over 3,000 units, valued at about S$2.5 billion.
For 1H 2024, FEHT reported a 3.4% year-on-year increase in gross revenue to around S$54 million.
This growth was mainly driven by higher master lease rental income from its hotel and serviced residence properties, coupled with stronger performance from its retail and office spaces.
Distributable income to Stapled Securityholders (DPS) rose by 2.7% year on year to S$39.4 million, backed by a 1% increase in net property income over the same period.
This gain was further bolstered by the distribution of other gains, which included S$2.2 million allocated to mitigate rising interest expenses, alongside S$4.0 million from the divestment of Central Square.
As a result, FEHT achieved a 2.1% improvement in DPS compared to a year ago, bringing it to S$0.0196.
4. IREIT Global (SGX: UD1U)
IREIT Global, Singapore’s first REIT focused on European assets, strategically invests in a diversified portfolio of retail, office, and industrial properties across the region.
Currently, its portfolio includes five freehold office properties in Germany, four freehold assets in Spain, and 44 retail properties in France.
For 1H’24, gross revenue and net property income increased substantially, where it was up by nearly 30% and 23% year on year to €36.6 million and €27 million, respectively.
This robust performance was driven primarily by the acquisition of new properties in France, the recognition of dilapidation costs paid by the sole tenant at the Berlin Campus, and rental contributions from the Darmstadt Campus.
Additionally, DPU for the period rose by 3.2% to €0.0096.
5. Mapletree Industrial Trust (SGX: ME8U)
Mapletree Industrial Trust (MIT) invests in a diversified portfolio of industrial and data centre properties across Singapore, the United States, and Japan.
As of 30 June 2024, MIT’s portfolio boasts 140 properties with a total valuation of about S$9 billion.
For the first quarter of fiscal 2025 (1Q FY2025), MIT reported a steady performance with gross revenue and net property income rising by 2.7% and 1.3% year on year, respectively, to S$175.3 million and S$132.5 million.
This growth was primarily driven by contributions from its newly acquired data centre in Japan, coupled with new leases and renewals across various property clusters.
Over the same period, MIT’s DPU saw a modest increase of 1.2% to S$0.0343.
6. Parkway Life REIT (SGX: C2PU)
Parkway Life REIT (PLife REIT) stands out as one of Asia’s largest healthcare-focused REITs, with a diversified portfolio spanning hospitals and nursing homes.
As of 30 June 2024, its portfolio includes three private hospitals in Singapore, 59 nursing homes and care facilities in Japan, and one specialist clinic in Malaysia, collectively managing assets worth about S$2.2 billion.
For 1H 2024, PLife REIT experienced a 2.7% year-on-year fall in gross revenue to S$72.4 million, primarily due to the depreciation of the Japanese Yen.
This decline was partially mitigated by revenue contributions from two newly acquired nursing homes in Japan.
Net property income also declined by 2.5% to S$68.4 million during the same period.
Despite these headwinds, the REIT reported a 3.5% year-on-year increase in its DPU to S$0.0754, driven by stronger distributable income from its Singapore hospitals and certain Japanese nursing homes with step-up lease agreements.
Boost your portfolio’s returns with 5 SGX stocks that promise both stability and steady growth. We bring you the names of these rock-solid stocks, including why they could drive massive dividends over the next few years. If you’re looking to invest for retirement, this guide is a must-read. Click HERE to download now.
Follow us on Facebook and Telegram for the latest investing news and analyses!
Disclaimer: Lim Jun Yuan owns shares of CapitaLand India Trust, CapitaLand Integrated Commercial Trust, and Mapletree Industrial Trust.
