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3 S-REITs announced acquisitions to increase DPU

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Felayt wrote a column · Nov 16, 2022 10:39
Our retirement can be supported by a stream of passive income from REITs, and these distributions may even increase over time.

The three major strategies used by REITs to increase their distribution per unit (DPU) are as follows:
1. acquisitions that can increase their asset base and DPU
2.  organic and involve positive rental reversions
3. the use of asset enhancement initiatives (AEI) to attract higher rental income
3 S-REITs announced acquisitions to increase DPU
There are 3 S-REITs announced acquisitions to increase DPU:
1. First REIT
First REIT is a healthcare REIT that owns a variety of nursing homes and hospitals.
First REIT announced its acquisition of two nursing homes in Japan for about $26.3 million. Additionally, First REIT provided an update on its operations for the first nine months of 2022. DPU increased 1.5% year over year to S$0.0198.

2. Keppel REIT
The REIT disclosed the purchase of a freehold boutique office property in Ginza, Japan, late last month. When completely leased, the asset is anticipated to produce an NPI return of 3.1% and increase DPU by 0.5%.

3. Digital Core REIT
The REIT is considering buying a 25% stake in a Frankfurt, Germany data center. It may lead the DPU for the first half of fiscal 2022 (1H2022) to increase by 2%, from US$0.0206 to US$0.021.

Moreover, the REIT was also proposing to acquire an 89.9% interest in the Frankfurt data centre and a 90% interest in a data centre in Dallas, USA. It may lead the DUP raised by 3.1% to US$0.0212.
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  • datoldcat : Honestly believe Real Estate has been a false industry for decades. Artificially low interest rates have resulted in artificially high prices and rents which will eventually come crashing down. I don’ believe RIETS are a good investment imo!!

  • Felayt OP datoldcat : There are many types of REITs, like industrial and logistics REITs  have been relatively stable in recent years. It may considered as a choice.