It’s always nice to see extra money hitting your bank account, particularly if it’s a large sum such as an annual bonus.
Although it might be tempting to spend it on your short-term wants, your bonus can also sow the seeds for a dividend portfolio that will pay you income for life.
While constructing said portfolio, investors tend to look at Real Estate Investment Trusts (REITs) given their steady distributions.
We look at three different kinds of REITs in this article that can help turn your one-time bonus into a recurring income stream.
Why REITs Are Popular for Passive Income
Income investors tend to favour REITs as they are required to distribute the majority of their income.
They may also provide wide-ranging exposure to different types of real estate, including offices, logistics facilities, and retail malls.
REITs tend to offer fairly predictable cash flow through the rental income they collect from their tenants, making the asset class an ideal investment for income seekers.
What Makes a REIT Suitable for Long-Term Income
If you’re looking for a REIT that is more likely to pay you a long-term income, you want to ensure the REIT has certain characteristics.
Right at the top of the list, you want a REIT with a high, stable occupancy rate backed by a diversified pool of quality tenants. These qualities strengthen the reliability of a REIT’s rental income and thus subsequent distributions made to investors.
Next, having a strong balance sheet with conservative leverage and a manageable debt-maturity profile fortifies the REIT during periods of macroeconomic uncertainty.
Additionally, having a solid track record of consistent or growing distribution per unit (DPU) over a period of time, including market downturns, provides a strong signal regarding the REIT’s quality.
Finally, having a clear capital allocation strategy for maintaining the quality of its portfolio assets, or even finding ways to enhance the portfolio value, is a bonus!
Combine these factors, and you have found a recipe that strengthens a REIT’s ability to pay solid income over the long term.
Frasers Centrepoint Trust (SGX: J69U) — The Defensive Income Anchor
Frasers Centrepoint Trust, or FCT, stands out with its strong defensiveness, given its exposure to suburban retail malls in Singapore.
You might be familiar with some of its properties, which include NEX, Causeway Point, and Tampines One.
With the majority of its tenants consisting of essential service providers, such as the retailers NTUC FairPrice and BreadTalk, the REIT enjoys steady demand across market cycles, which supports consistent rental income.
FCT’s latest occupancy rate is terrific, coming in at 99.9% in the first quarter of 2026. Rental income visibility is stable, with a weighted average lease to expiry (WALE) of 1.8 years.
This heartland mall owner also has a solid DPU track record, with DPU remaining stable, at just over S$0.12 in each year over the last five years.
The key takeaway is that REITs operating in defensive sectors such as suburban retail are prime candidates for income resilience.
Digital Core REIT (SGX: DCRU) — The Growth-Oriented REIT
The next name on our list is a REIT that offers solid growth prospects, given its ownership of data centres across Europe, Japan, and the Americas.
The strong global demand for data centres has been a direct tailwind for Digital Core REIT, as seen in its latest rental reversion of 31% for 2025.
The data centre REIT’s management is also actively on the lookout for accretive acquisitions, as seen in the recent investment to acquire a stake in an Osaka-connected data centre campus.
In January 2026, Digital Core announced the completion of the repositioning of its asset in Northern Virginia, and a new 10-year lease that would result in a 35% increase in net rent compared to the previous lease.
Overall, this data centre REIT has been pulling the right punches and would provide a solid growth option for your portfolio of REITs.
Sasseur REIT (SGX: CRPU) — The High-Yield Opportunity
The last name on our list, Sasseur REIT, stands out with its mouth-watering 9.6% trailing distribution yield.
Compared to its five-year historical average of roughly 8.8%, the current trailing yield seems attractive.
Not to mention, this 9.6% yield significantly dwarfs the iEdge S-REIT index’s yield of 5.9%.
Looking at its last four-year history, Sasseur REIT’s DPU appears to be stabilising around S$0.06 each year.
Investors should take note that Sasseur REIT’s portfolio consists of retail malls in China; the upcoming government stimulus in the country could boost the REIT’s DPU.
On the balance sheet front, the REIT is lowly geared with a 25.1% leverage ratio and a decent interest coverage ratio of 4.7 times.
Its debt profile seems manageable, with 38% of its debt coming due in 2028 and 49% in 2030.
The key takeaway here is that a high yield alone should not disqualify a REIT from consideration.
Rather, more scrutiny has to be paid to evaluate the sustainability of payment and the credit profile of the REIT.
How to Deploy Your Bonus Thoughtfully
So, for this bonus season, you can consider allocating it thoughtfully by avoiding investing the entire sum at once.
Do consider spreading your purchases over time, at different price levels.
By investing your bonus in a deliberate manner, you can achieve a future payoff far exceeding the current amount.
What Could Go Wrong
Some risks facing REITs include higher interest rates, which could pressure property valuations and increase refinancing risk (especially for overleveraged REITs).
Weak demand in certain sectors, such as retail, could also negatively impact some names.
The key takeaway is that every investment, even in income-producing assets, is not free of risks.
Get Smart: Turn a One-Time Bonus Into Long-Term Income
In sum, for the bonus season this year, consider building a long-term income portfolio with your bonus, instead of fulfilling your short-term wants.
This way, you can generate a higher income in the future that dwarfs your bonus today.
In this article, we highlight how REITs are a fantastic way to build recurring cash flows. The key is to focus on underlying fundamentals and be disciplined in your investing approach.
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Disclosure: Wilson H. does not own shares in any of the companies mentioned.
