CapitaLand Integrated Commercial Trust, or CICT, is a retail and commercial REIT with a portfolio of 21 properties in Singapore, two in Germany, and three in Australia.
The REIT’s total assets under management stood at S$24.5 billion as of 31 December 2023.
For 2023, CICT saw its gross revenue rise 8.2% year on year to S$1.6 billion while net property income (NPI) increased by 7% year on year to S$1.1 billion.
Distribution per unit (DPU) inched up 1.6% year on year to S$0.1075.
At a unit price of S$2.06, CICT’s units offer a trailing distribution yield of 5.2%.
CICT also has a strong sponsor in blue-chip real estate investment manager CapitaLand Investment Limited (SGX: 9CI).
For the first quarter of 2024 (1Q 2024), CICT’s financial and operating metrics remained robust.
NPI increased by 6.3% year on year to S$293.7 million with portfolio committed occupancy staying high at 97%.
Rental reversion for 1Q 2024 was positive for both the retail and commercial divisions at 7.2% and 14.1%, respectively.
Keppel DC REIT (SGX: AJBU)
Keppel DC REIT is a data centre REIT with 23 data centres across nine countries with an AUM of S$3.7 billion.
The 1Q 2024 saw a mixed performance from the REIT.
Gross revenue improved by 18.4% year on year to S$83.4 million while NPI increased by 11.2% year on year to S$71 million.
DPU for the quarter fell by 13.7% year on year to S$0.02192 because of a provision made for Guangdong data centres under a troubled tenant – Bluesea.
The data centre REIT’s trailing 12-month DPU stood at S$0.09034, giving its units a trailing 12-month distribution yield of 4.7%.
Despite the lower DPU, Keppel DC REIT has a strong sponsor in asset manager Keppel Ltd (SGX: BN4).
Portfolio occupancy stayed high at 98.3% as of 31 March 2024 with a long portfolio weighted average lease expiry (WALE) of 7.4 years.
The data centre REIT just announced its maiden acquisition in Japan which should increase its 2023 DPU by 1.1% to S$0.09488.
Digital Core REIT (SGX: DCRU)
Digital Core REIT, or DCR, is another data centre REIT with a portfolio of 10 data centres with an AUM of US$1.4 billion.
DCR has a strong sponsor in Digital Realty Trust (NYSE: DLR), a data centre REIT listed in the US with more than 300 data centres across 50 cities in 28 countries around the world.
For 2023, the REIT saw a 4.8% year-on-year dip in revenue to US$102.6 million while NPI fell by 9.1% year on year to US$63.1 million.
DPU for the year declined by 7% year on year to US$0.037.
DCR’s trailing distribution yield stood at 6% at a unit price of US$0.62.
For 1Q 2024, the REIT saw revenue and NPI fall by 8.2% and 9.5% year on year, respectively.
However, distributable income fell by a gentler 2.4% year on year to US$10.6 million.
Despite the fall, the data centre REIT sported strong operating metrics.
Portfolio occupancy stood high at 95% while aggregate leverage was at 35.1%, giving the REIT a debt headroom of US$115 million for acquisitions before hitting the 40% level.
OUE REIT (SGX: TS0U)
OUE REIT is a commercial and hospitality REIT with a portfolio of six assets in Singapore and one in Shanghai.
The total AUM for the REIT stood at S$6.3 billion as of 31 December 2023.
The REIT also has a reputable sponsor in OUE Ltd (SGX: LJ3), a real estate and healthcare group with a portfolio of properties valued at S$9.3 billion as of 31 December 2023.
OUE REIT reported a resilient set of earnings for 2023.
Revenue rose 18% year on year to S$285.1 million with NPI jumping 19.3% year on year to S$235 million.
Finance costs, however, climbed 30% year on year to S$104.1 million, causing DPU to slip by 1.4% year on year to S$0.0209.
The REIT’s units provide a trailing distribution yield of 7%.
1Q 2024 saw an encouraging business update from OUE REIT.
Revenue rose 9.5% year on year to S$74.9 million while NPI improved by 6.9% year on year to S$60.5 million.
Investors will be glad to know that the REIT has no refinancing requirements until the second half of 2025 when a quarter of its debt comes due.
Its Singapore office portfolio also sported a high committed occupancy of 95.1% with a positive rental reversion of 12.6%.
Mandarin Gallery, the retail portion of its hospitality asset, did even better.
Committed occupancy came in at 96.6% with a positive rental reversion of 22% for the quarter.
If you’re looking to retire comfortably during this period of high inflation, join our FREE email series ‘Secrets to Becoming a Singapore Stock Market Millionaire ’. Over 5 emails, you’ll get daily investing tips that will help you build a recession-proof retirement portfolio. Easy to implement, and works for any level of investing experience. Click here to sign up now.
Which SGX companies will reach S$100 billion next? Our latest FREE report provides detailed financial analysis and growth prospects of 5 potential candidates. The results? Surprising. You’ll want to grab a copy now and see whether what everyone else says is true. Click here to download now.
Follow us on Facebook and Telegram for the latest investing news and analyses!
Disclosure: Royston Yang owns shares of Keppel DC REIT and Digital Core REIT.
