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5 Reliable Singapore REITs Sporting Dividend Yields of 5.7% and Higher

Keppel DC Singapore 1 (KDC SGP 1)
Keppel DC Singapore 1 (KDC SGP 1)

Income investors have relied on the REIT sector to pay out dependable dividends for many years.

Although REITs are now facing a perfect storm of rising interest rates and surging inflation, this asset class continues to deliver steady distributions.

However, during tough times, you should look for REITs with strong sponsors and long track records as they are better positioned to weather such storms.

We rounded up five reliable Singapore REITs that you can not only count on during downturns but also sport high distribution yields of 5.7% or higher.

CapitaLand Ascendas REIT (SGX: A17U)

CapitaLand Ascendas REIT, or CLAR, is an industrial REIT with a portfolio of 232 properties spread across Singapore, the US, Australia, the UK and Europe.

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As of 31 December 2023, CLAR’s assets under management (AUM) stood at S$16.9 billion.

The REIT reported a mixed set of earnings for 2023 as gross revenue rose 9.4% year on year to S$1.5 billion.

Net property income (NPI) improved by 5.6% year on year to S$1 billion but distribution per unit fell by 4% year on year to S$0.1516.

CLAR’s units provide a trailing distribution yield of 5.8%.

The industrial REIT sported a high occupancy rate of 94.2% and reported healthy positive rental reversion of 13.4%.

Its aggregate leverage stood at 37.9% with an average all-in cost of debt of 3.5%, giving it headroom for more yield-accretive acquisitions.

Mapletree Logistics Trust (SGX: M44U)

Mapletree Logistics Trust, or MLT, is a logistics REIT with a portfolio of 187 properties across eight countries with an AUM of S$13.3 billion as of 31 December 2023.

Like CLAR, MLT also reported a mixed set of earnings for the first nine months of fiscal 2024 (9M FY2024).

Gross revenue inched up 0.2% year on year to S$552.9 million but NPI slipped 0.2% year on year to S$479.6 million.

DPU, however, edged up 0.7% year on year to S$0.06792.

MLT’s trailing 12-month DPU stood at S$0.0906, giving its units a trailing distribution yield of 6.6%.

The REIT reported a high portfolio occupancy of 95.9% with a positive average rental reversion of 3.8% for the latest quarter.

MLT’s aggregate leverage stood at 38.8% as of 31 December 2023 with an average cost of debt of 2.5%, giving the REIT adequate debt headroom for more acquisitions.

To date, the logistics REIT has conducted acquisitions of nine properties worth more than S$900 million.

Keppel DC REIT (SGX: AJBU)

Keppel DC REIT is a data centre REIT with a portfolio of 23 data centres in nine countries.

The REIT’s AUM stood at S$3.7 billion as of 31 December 2023.

The data centre REIT announced a downbeat set of earnings for 2023 due to higher finance costs and a provision for unpaid rental from a Chinese tenant.

Gross revenue improved by 1.4% year on year to S$281.2 million but NPI fell 3% year on year to S$245 million.

With a 56% year-on-year jump in finance costs, DPU tumbled 8.1% year on year to S$0.09383.

Keppel DC REIT’s units provide a trailing distribution yield of 5.7%.

The REIT maintained a high portfolio occupancy of 98.3% as of 31 December 2023 along with a weighted average lease expiry of 7.6 years by net lettable area.

Just this week, Keppel DC REIT announced a set of transactions to unlock value from its Intellicentre Campus by selling it at a near-150% premium to its original investment of A$70 million.

The proceeds were reinvested into an Australian Data Centre Note with an initial yield of 6.97% with in-built rental escalations.

CapitaLand Integrated Commercial Trust (SGX: C38U)

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

2023 saw the REIT report an 8.2% year-on-year rise in gross revenue to S$1.6 billion while NPI increased by 7% year on year to S$1.1 billion.

DPU increased by 1.6% year on year to S$0.1075.

Units of CICT provide a trailing distribution yield of 5.8%.

The REIT not only enjoys a high committed occupancy of 97.3% but is also supported by a reputable sponsor in CapitaLand Investment Limited (SGX: 9CI).

In addition, its retail and commercial portfolios also enjoyed positive rental reversions of 8.5% and 9%, respectively.

Frasers Centrepoint Trust (SGX: J69U)

Frasers Centrepoint Trust, or FCT, is a retail REIT with a portfolio of 10 retail malls and an office building with a total AUM of approximately S$6.9 billion as of 25 October 2023.

The retail REIT reported a resilient set of earnings with gross revenue improving by 3.6% year on year to S$369.7 million.

NPI increased by 2.7% year on year with higher committed occupancies and improved rental reversions.

DPU, however, slid by 0.6% year on year to S$0.1215.

Units of FCT offer a trailing distribution yield of 5.8%.

For its first quarter of FY2024’s business update, the retail REIT saw occupancy hit 99.9% with shopper traffic increasing by 3.1% year on year.

Aggregate leverage came in at just 37.2% as of 31 December 2023 but all-in borrowing cost crept up to 4.3% from 4.1% in the previous quarter.

The REIT’s asset enhancement initiative at Tampines 1 is progressing well and is on track for completion in September 2024.

Attention Dividend Investors: Now’s the time to tap into high-yield REITs in Singapore. We’ve just released our latest report, revealing the full details on five Singapore REITs, each boasting distribution yields of 5.5% or higher.  With a focus on stability and performance, these REITs could be the missing piece in your dividend-focused portfolio. Download the FREE report now to unlock these high-yield treasures.

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Disclosure: Royston Yang owns shares of Keppel DC REIT.

The post 5 Reliable Singapore REITs Sporting Dividend Yields of 5.7% and Higher appeared first on The Smart Investor.