The Central Provident Fund (CPF) account is a great way to save for your retirement.
However, with the CPF Ordinary Account (OA) paying just 2.5% per annum on its balances, investors may find it tough to beat inflation.
The REIT sector presents great opportunities for income-seeking investors to earn a better return on their CPF balances.
You should not just look for any REIT, though.
The blue-chip REITs can provide you with peace of mind while also dishing out a healthy dividend yield that exceeds the returns on your CPF OA.
Here are several that you can consider for your CPF Investment Account.
Mapletree Industrial Trust (SGX: ME8U)
Mapletree Industrial Trust, or MIT, is an industrial REIT with a portfolio of 56 properties in the US, 83 in Singapore, and one in Japan.
The REIT’s assets under management (AUM) came in at S$9 billion as of 30 June 2024.
MIT reported a commendable set of earnings for its first quarter of fiscal 2025 (1Q FY2025) ending 30 June 2024.
Revenue increased by 2.7% year on year to S$175.3 million, contributed by revenue contributions from its newly-acquired Osaka data centre along with renewals and positive rental reversions across its portfolio.
Net property income (NPI) inched up 1.3% year on year to S$132.5 million while distribution per unit improved by 1.2% year on year to S$0.0343.
MIT saw its occupancy improve slightly to 91.9% from 91.4% in the previous quarter after signing a new lease at Brentwood, USA.
The REIT also completed the Phase 3 fit-out works for its new Osaka data centre.
MIT also achieved an average positive rental reversion of 9.2% for renewal leases within its portfolio.
Shares of the industrial REIT provided a 5.5% forward distribution yield.
Mapletree Logistics Trust (SGX: M44U)
Mapletree Logistics Trust, or MLT, is a logistics-focused REIT with a portfolio of 188 properties across eight countries.
The REIT’s AUM stood at S$13.4 billion as of 30 June 2024.
MLT reported a downbeat set of earnings for 1Q FY2025 as it was negatively impacted by currency weakness and a weak performance in China.
For 1Q FY2025, revenue dipped by 0.3% year on year to S$181.7 million with NPI falling by 0.9% year on year to S$156.7 million.
DPU tumbled by 8.9% year on year to S$0.02068.
The annualised DPU of S$0.08272 gives MLT’s units a prospective distribution yield of 5.8%.
MLT reported a high portfolio occupancy of 95.7% with an average positive rental reversion of 2.6% for its latest quarter.
Frasers Centrepoint Trust (SGX: J69U)
Frasers Centrepoint Trust, or FCT, is a retail REIT with a portfolio of nine retail malls and an office building.
FCT’s portfolio value stood at approximately S$7.1 billion as of 31 March 2024.
The retail REIT reported a resilient set of earnings for its first half of fiscal 2024 (1H FY2024) ending 31 March 2024.
Gross revenue and NPI fell by 7.2% and 8.4% year on year, respectively, to S$172.2 million and S$124.6 million.
The fall was due to the divestment of Changi City Point in October 2023 along with lower rental income contributions from Tampines 1 Mall which is undergoing an asset enhancement initiative (AEI).
Despite the lower top line, DPU for 1H FY2024 slid by only 1.8% year on year to S$0.06022.
Units of FCT provide a prospective distribution yield of 5.1% with an annualised DPU of S$0.12044.
The retail REIT has gone on to provide an encouraging update for the third quarter of fiscal 2024 (3Q FY2024) ending 30 June 2024.
Retail committed portfolio occupancy stood high at 99.7% with shopper traffic and tenant sales booking a 4.1% and 0.7% year-on-year growth, respectively.
Tampines 1 Mall also achieved 100% committed occupancy with its AEI on track for completion by this month.
CapitaLand Ascendas REIT (SGX: A17U)
CapitaLand Ascendas REIT, or CLAR, is Singapore’s oldest and largest industrial REIT with a portfolio of 229 properties worth S$16.9 billion as of 30 June 2024.
CLAR reported a mixed set of earnings for 1H 2024.
Gross revenue rose 7.2% year on year to S$770.1 million while NPI increased by 3.9% year on year to S$528.4 million.
DPU, however, dipped by 2.5% year on year to S$0.07524.
The annualised DPU of S$0.15048 gives CLAR’s units a forward distribution yield of 5.2%.
CLAR’s portfolio continued to enjoy a healthy portfolio occupancy of 93.1% along with a positive rental reversion of 13.4%.
The industrial REIT also has six ongoing AEI projects worth S$572.8 million to refurbish and redevelop properties in Singapore to improve overall returns for the portfolio.
CapitaLand Integrated Commercial Trust (SGX: C38U)
CapitaLand Integrated Commercial Trust, or CICT, is a retail and commercial REIT with a portfolio of 21 Singapore properties, two German properties, and three Australian properties.
CICT’s AUM stood at S$24.5 billion as of 31 December 2024.
CICT delivered a robust set of earnings for 1H 2024 with gross revenue edging up 2.2% year on year to S$792 million.
NPI did better, improving by 5.4% year on year to S$582.4 million.
The REIT’s DPU rose 2.5% year on year to S$0.0543.
The annualised DPU of S$0.1086 means that CICT’s units provide a forward distribution yield of 5.1%.
Like CLAR, CICT also boasted strong portfolio operating metrics.
The committed occupancy rate stood at 96.8% while the year-to-date rental reversion came in positive at 9.3% for its retail division and 15% for its office sector.
Both retail and office divisions also enjoyed strong tenant retention rates of 85.7% and 81.5% for 1H 2024, respectively.
In our latest report, we dive into five standout Singapore REITs offering distribution yields exceeding 5.5%. Why settle for less? Get more dividends hitting your bank account with our REITs guide. Click here to download for free now.
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Disclosure: Royston Yang owns shares of Mapletree Industrial Trust.
