Yahoo Finance These 5 REITs Have Strong Sponsors and Are Yielding Almost 4% or More
If you are looking for a good REIT that can continue to pay you dividends, there are a few key attributes to watch.
One of these is the presence of a strong sponsor that can help to provide financial support should a REIT flounder.
Another attribute is the consistent and steady payment of distributions.
With REITs being known as dependable income instruments, many income-seeking investors depend on them for passive income.
Hence, a good dividend yield becomes yet another desirable aspect of a well-run REIT.
The combination of a strong sponsor and good dividend yield form the basis for a rock-solid investment that offers both resilience and a steady source of cash inflow.
Here are five REITs that are yielding almost 4% and more and also possess a strong sponsor.
Mapletree Industrial Trust (SGX: ME8U)
Mapletree Industrial Trust, or MIT, is a REIT that invests in a portfolio of industrial properties and data centres in Singapore and the US.
As of 31 March 2021, MIT had assets under management (AUM) of S$6.8 billion and its portfolio comprised 87 industrial properties in Singapore and 28 in the US.
The REIT’s sponsor is Mapletree Investments Pte Ltd (MIPL), a unit of state-owned Temasek Holdings.
As of 31 March 2020, MIPL owns and manages S$60.5 billion of properties spanning a wide array of sub-classes including office, retail and industrial, to name a few.
For its fiscal year 2021 (FY2021), the REIT reported a 10.2% increase in gross revenue to S$447.2 million.
Net property income (NPI) rose 10.4% year on year to S$351 million.
Distribution per unit (DPU) inched up 2.5% year on year to S$0.1255.
At the REIT’s last traded price of S$2.89, the REIT’s trailing dividend yield stands at 4.3%.
Mapletree Logistics Trust (SGX: M44U)
Mapletree Logistics Trust, or MLT, owns a diversified portfolio of 163 logistics properties located in countries such as Singapore, Hong Kong, Japan and Australia, to name a few.
As of 31 March 2021, the total AUM stood at S$10.8 billion.
The REIT’s sponsor is also MIPL, and MLT also announced a respectable set of earnings for FY2021.
Gross revenue rose by 14.3% year on year to S$561.1 million while NPI increased by 13.8% year on year.
DPU crept up 2.3% year on year to S$0.08326.
At the last traded share price of S$2.10, MLT’s units offer a trailing dividend yield of around 3.9%.
Ascendas India Trust (SGX: CY6U)
Ascendas India Trust, or AIT, owns seven IT business parks and one logistics park in India.
As of 31 December 2020, the REIT’s AUM stood at S$2.1 billion.
The trust is managed by Ascendas Property Fund Trustee Pte Ltd, which in turn is a wholly-owned subsidiary of real estate giant CapitaLand Limited (SGX: C31).
CapitaLand owns and manages a global portfolio worth around S$133.3 billion as of 30 September 2020.
Total property income dipped by 3% year on year for the fiscal year 2020 (FY2020) ended 31 December 2020.
Despite the above, distributable income jumped 18% year on year to S$101.3 million.
DPU increased by 8% year on year to S$0.0883. Units of AIT offer a dividend yield of 6% at the last traded price of S$1.48.
Frasers Centrepoint Trust (SGX: J69U)
Frasers Centrepoint Trust, or FCT, owns a portfolio of 10 retail malls and an office building in Singapore, with an AUM of around S$6.4 billion as of 31 March 2021.
The REIT’s sponsor is Frasers Property Limited (SGX: TQ5), or FPL.
FPL is an owner and developer of properties with total assets worth S$38.7 billion as of 30 September 2020.
FCT reported a sharp increase in gross revenue of 73.8% year on year to S$173.6 million for its fiscal 2021 half year ended (1H2021).
NPI increased by the same quantum and DPU jumped by 28.4% year on year to S$0.05996.
The better numbers are attributed to the acquisition of a portfolio of five malls from AsiaRetail Funds last September.
Annualised DPU stands at S$0.11992 and the REIT’s units offer a prospective dividend yield of 4.9%.
Frasers Logistics & Commercial Trust (SGX: BUOU)
Frasers Logistics & Commercial Trust, or FLCT, owns a portfolio of logistics and commercial assets in five countries — Germany, Singapore, the UK, the Netherlands and Australia.
FLCT’s sponsor is also FPL, and the REIT owns 97 properties worth around S$6.3 billion as of 31 March 2021.
Due to its merger with Frasers Commercial Trust last April, the REIT reported a 95.1% year on year surge in revenue to S$231.7 million for 1H2021.
NPI increased by 79.3% year on year while DPU rose by 9.5% year on year to S$0.038.
FLCT’s units offer a prospective dividend yield of 5.1% based on the annualised DPU of S$0.076.
Turn your portfolio into a powerful cash-generating machine with our special FREE report, 5 Telltale Signs of Dividend Stocks That Can Pay You For Life! We cover 5 Singapore stocks with traits that could give you everlasting dividends. CLICK HERE to download the report for free now!
Follow us on Facebook and Telegram for the latest investing news and analyses!
Disclaimer: Royston Yang owns shares of Frasers Logistics & Commercial Trust.
The post These 5 REITs Have Strong Sponsors and Are Yielding Almost 4% or More appeared first on The Smart Investor.
