5 Billion-Dollar Singapore REITs with Distribution Yields of 5% or Higher

Singapore is well known for being a REIT hub.

Income-seeking investors are spoilt for choice when it comes to selecting suitable REITs for their portfolios.

REITs consistently pay out regular dividends that act as a stream of passive income.

But of course, not all REITs stand on the same level.

The larger REITs with a long listing history have more clout and offer more certainty and stability compared to newly-listed, smaller ones.

In searching for REITs to buy, it is a good idea to gravitate towards billion-dollar REITs that are paying out sustainable distribution yields of 5% or more.

Five of these REITs are in the spotlight that you may wish to include in your buy watchlist.

Frasers Centrepoint Trust (SGX: J69U)

Frasers Centrepoint Trust, or FCT, is a Singapore suburban retail REIT with a portfolio of 10 retail malls and one office.

Its assets under management (AUM) stood at S$6.9 billion as of 31 March 2023.

FCT’s market capitalisation was around S$3.8 billion at the last close of S$2.22.

For its fiscal 2023’s first half (1H FY2023) ending 31 March, gross revenue improved by 6.5% year on year to S$187.6 million while net property income (NPI) rose 5.7% year on year to S$138 million.

Distribution per unit (DPU) stayed flat year on year at S$0.0613.

The annualised DPU was S$0.1226, giving its units a trailing distribution yield of 5.5%.

FCT’s retail committed occupancy has hit a high of 99.2% with healthy leasing demand and rental reversions.

The year-to-date (YTD) rental reversion for 1H FY2023 stood at positive 4.3% with retail performance seeing a 9.2% year-on-year rise in tenant sales and a sharp 35.3% year-on-year jump in shopper traffic.

The retail REIT also acquired a stake in NEX Mall earlier this year and has completed the asset enhancement initiative (AEI) at Tampines One.

Both these events should contribute positively to revenue and NPI for 2H FY2023.

Mapletree Pan Asia Commercial Trust (SGX: N2IU)

Mapletree Pan Asia Commercial Trust, or MPACT, is an S$8.9 billion retail and commercial REIT with a portfolio of 18 properties across five countries.

The assets are valued at S$16.6 billion as of 31 March 2023.

For its fiscal 2023 (FY2023) ending 31 March, MPACT reported a 65.4% year-on-year jump in revenue to S$826.2 million.

NPI improved by 62.6% year on year to S$631.9 million and DPU climbed 6.1% year on year to S$0.0961.

At a unit price of S$1.67, MPACT’s units provide a trailing distribution yield of 5.8%.

The REIT’s key retail asset, VivoCity, is undergoing an AEI that will see around 80,000 square feet of space reconfigured and is poised to deliver an estimated return on investment of over 20%.

CapitaLand Ascott Trust (SGX: HMN)

CapitaLand Ascott Trust, or CLAS, is Asia-Pacific’s largest lodging trust with 105 properties across 47 cities with an AUM of S$8 billion as of 31 December 2022.

CLAS has a market capitalisation of around S$3.8 billion.

The hospitality trust reported a distribution per stapled security (DPSS) of S$0.0567 for 2022, a 31% year-on-year jump from the previous year’s S$0.0432.

CLAS units provide a distribution yield of 5.2%.

Both revenue and NPI last year rose sharply as the manager saw increased revenue from tourism and contributions from its student accommodation assets and rental housing properties.

For the first quarter of 2023 (1Q 2023), gross profit climbed 59% year on year with revenue per available unit (RevPAU) surging 90% year-on-year to S$127.

CapitaLand Integrated Commercial Trust (SGX: C38U)

CapitaLand Integrated Commercial Trust, or CICT, is a S$13.1 billion retail cum commercial REIT with a portfolio of 26 properties in Singapore, Germany and Australia.

The portfolio’s AUM stood at S$24.2 billion as of 31 December 2022.

For 2022, CICT paid out a DPU of S$0.1058, higher than the prior year’s S$0.104.

The REIT’s units were yielding around 5.3%.

CICT’s 1Q 2023 business update saw the REIT report a double-digit year-on-year increase in NPI, giving investors hope that DPU can continue to increase.

OUE Commercial REIT (SGX: TS0U)

OUE Commercial REIT, or OUECR, owns a portfolio of seven properties in Singapore and Shanghai with an AUM of S$6 billion as of 31 December 2022.

The hospitality cum commercial REIT has a market capitalisation of around S$1.8 billion.

For 2022, OUECR reported a DPU of S$0.0212, an 18.5% year-on-year dip from 2021’s S$0.026.

Despite this, the REIT reported that 1Q 2023’s revenue and NPI rose 14.9% and 18% year-on-year, respectively, to S$68.4 million and S$56.6 million.

Units of OUECR offer a trailing distribution yield of 6.1%.

Not sure which REIT to put your money in? Use our 7-step REIT checklist to find one that fits into your retirement plan. Checklist is inside our latest FREE report “Singapore REITs Retirement Plan”. Click here to download it now.

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Disclosure: Royston Yang does not own shares in any of the companies mentioned.

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