The REIT sector has taken it on the chin over the past three years.
The beleaguered sector had to content with soaring inflation and surging interest rates that crimped distributable income, causing distributions to fall.
Despite these challenges, there are several REITs owning purely overseas assets that managed to put up a respectable performance.
Not only has this select group of REITs thrived under adversity, but they also managed to increase their distribution per unit (DPU) and boast a high distribution yield.
We showcase the trio that you can consider adding to your REIT buy watchlist.
United Hampshire US REIT (SGX: ODBU)
United Hampshire US REIT, or UHREIT, owns a portfolio of 19 predominantly grocery-anchored and necessity-based properties along with two self-storage properties.
These properties have a total net lettable area (NLA) of around 3.5 million square feet with assets under management of US$731.7 million.
UHREIT saw its gross revenue dip 3% year on year to US$35.7 million because of the absence of rental contributions from three divested properties.
Net property income (NPI) fell 5.6% year on year in tandem to US$24 million.
Excluding the divestments, like-for-like revenue and NPI would have risen 2.6% and 2.4%, respectively.
The commencement of new leases, along with rental escalation from existing leases, helped to contribute to the better performance.
The retail REIT’s DPU rose 4% year on year to US$0.0209 for 1H 2025, taking its annualised DPU to US$0.0418.
At a unit price of US$0.49, the REIT’s forward distribution yield is an attractive 8.5%.
UHREIT maintained a high committed occupancy of 97.2% for its grocery properties, and 95.3% for its self-storage properties.
The manager has also been active in acquisitions and developments to enhance the REIT’s portfolio.
Dover Marketplace in Pennsylvania was acquired for US$16.4 million and is anchored by GIANT, a leading supermarket operator.
This acquisition is expected to increase DPU by 2%.
UHREIT has also embarked on the construction of a new 5,000 square foot store in St Lucie West, which has been pre-leased to Florida Blue for 10 years.
CapitaLand India Trust (SGX: CY6U)
CapitaLand India Trust, or CLINT, is an Indian property trust with a portfolio of 10 IT business parks, three industrial facilities, one logistics park, and four data centre developments.
These properties are spread across Bangalore, Chennai, Hyderabad, Pune, and Mumbai and have a total AUM of around S$3.7 billion.
The REIT also posted a commendable set of earnings with total property income rising 10% year on year to S$149.3 million for 1H 2025.
NPI also increased by 10% year on year to S$113.6 million, and DPU improved by 9% year on year to S$0.0397.
With the annualised DPU of S$0.0794, CLINT’s units provide a forward distribution yield of 6.8%.
Committed occupancy for the REIT was high at 90% with a positive rental reversion of 9%.
CLINT has a pathway to grow its asset base using a committed pipeline, with floor area projected to rise from 22.7 million square feet (sqft) to 33.3 million sqft in the future.
The REIT’s growth levers include optimising its current portfolio by increasing occupancy and improving space efficiency, as well as recycling capital from older properties into those with newer specifications.
To this end, the manager is considering the potential divestment of a 33% stake in the data centre portfolio to realise value and deleverage.
Elite UK REIT (SGX: MXNU)
Elite UK REIT, or Elite for short, owns mostly UK freehold properties located near town centres with amenities.
The REIT owns 150 assets with a total portfolio value of £421.5 million.
For 1H 2025, revenue rose 0.5% year on year to £18.7 million, but NPI dipped by 0.4% year on year to £18.66 million.
DPU came in at £0.0154, 10% higher than a year ago.
The annualised DPU is £0.0308, giving Elite UK REIT’s units a prospective distribution yield of 8.9%.
The manager has been busy reconstituting the REIT’s portfolio with acquisitions, divestments, and asset repositioning.
During 1H 2025, Elite UK REIT completed the yield-accretive acquisition of three properties for £9.2 million.
Both Hilden House and Crown Buildings were divested at £4 million, at an average 7.9% premium above valuation.
The REIT also received planning approval for the conversion of Lindsee House in Dundee into a 168-bed purpose-built student accommodation (PBSA) asset.
The manager’s focus in the near term is to engage with its tenants to discuss the renewal of leases ahead of their expiries in 2028, and also to look at converting another asset, a data centre site in Peel Park (Blackpool), to increase distributable income.
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Disclosure: Royston Yang does not own shares in any of the companies mentioned.
