The sign of slower rates hike adds to improve the REITs Markets. As one of the largest REIT markets in Asia, Singapore's REIT market is particularly needed to watch.
Singapore has the largest REIT market in Asia (ex-Japan) and is increasingly becoming a global REIT hub. There are 42 S-REITs and property trusts listed with a market cap of over SGD 100 billion (USD 80 billion). Compared to direct real estate investing, REITs have lower investment threshold and better liquidity, while having stable cash flow through dividends, lower volatility and moderate total return.
Here are five quality Singapore REITs selected by uSMART chief analyst and investment team:
1. CapitaLand Integrated Commercial Trust (SGX: C38U)
Market cap: S $13.3 billion Dividend yield: 5.2%
- CapitaLand Investmentis one of Singapore's largest real estate investment managers, with AUM S $125 billion
- The pioneer of SingaporeREITs, focusing on office buildings, retail malls and integrated development projects in Singapore
- Retail portfolio tenant sales have exceeded pre-COVID-19 levels
2. CapitaLand Ascendas REIT (SGX: A17U)
Market cap: S $11.5 billion Dividend yield: 3.5%
- The mother of Singapore industrial trust, the ratio of Singapore and overseas properties is about 6:4
- Rental income does not depend on any customers, and single tenant income contributes less than 5%
- Q3 portfolio occupancy was stable at 94.5%, portfolio rental reversion 5.4%.
3. Mapletree Industrial Trust (SGX: ME8U)
Market cap: S $6.1 billion Dividend yield: 6.2%
- Mapltree Investments has nearly S $80 billion in assets under management
- 80+ Singapore properties, 50+ US properties, including data centers, light industrial buildings, flat factories, etc
- The dividend has been increasing year after year, and the project of redeveloping old industrial buildings into high-tech industries is in progress, so there is room for dividend growth
4. Frasers Centrepoint Trust (SGX: J69U)
Market cap: S $3.5 billion Dividend yield: 5.9%
- It is managed by frasersProperty, a property giant worth about $40 billion
- The portfolio comprises 11 shopping malls located in the heart of Singapore
- Safe and stable, asset-liability ratio is low at 34%
5. Parkway Life REIT (SGX: C2PU)
Market cap: S $2.4 billion Dividend yield: 2.6%
- Owns 50+ properties in Singapore, Japan, Malaysia, and rents can rise with inflation or profit growth
- Half of the revenue comes from Singapore's highly profitable private hospitals and half from Japanese nursing homes
- Its share price has nearly quadrupled since it went public in 2007, and its dividend has doubled
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