Top 10 REITs Gainers in Singapore
Singapore's Real Estate Investment Trusts (REITs) may be a budget-friendly approach to set foot in the property market. Boasting steady passive income streams, S-REITs have historically dished out returns between 4% to 8% annually. In this article, we unravel 2023's top 10 Singapore REITs gainers, and offer key insights for making informed choices in this charming segment.
Singapore REITs Market Overview
Singapore REITs hold a market capitalization of over $100 billion, accounting for 12% of the total local market. There are 42 REITs and property trusts listed on SGX, and the average dividend yield of S-REITs hits 7.6% as of 31 March 2023.
Singapore REITs can be broken down into seven sectors: 1) Diversified REITs (23%); 2) Industrial REITs (20%); Retail REITs (20%); Office REITs (15%); Hospitality REITs (13%); Health Care REITs (5%); and Specialised REITs (5%).
2023 S-REITs Retrospect
The year 2023 has witnessed notable headwinds in Singapore REITs (S-REITs). Rising interest rates escalated their borrowing expenses, making it harder to maintain previous levels of dividend payouts.
Things become more challenging with the global geopolitical unrest, contributing to a volatile and uncertain business environment. In the first half of 2023, S-REITs traded flat, with the iEdge S-REIT index generating a positive total return of about 2.1%. Not an outstanding performance, though, it was a slight relief compared to a negative total return of -12% in 2022.
As the year 2023 progresses into its later months, the slowing pace of inflation and a pause in Federal Reserve rate hikes seem to mitigate concerns about the impact of higher interest rates on REITs.
Top 10 REITs Gainers in Singapore 2023
As of December 19th, 2023, the top 10 REITs gainers in Singapore 2023 are DigiCore Reit USD, Mapletree Ind Tr, AIMS APAC Reit, CapLand Ascendas REIT, UtdHampsh Reit USD, Frasers Centrepoint Tr, First Reit, Mapletree Log Tr, Daiwa Hse Log Tr, and Keppel DC Reit.
1. DigiCore Reit USD (DCRU)
Company Profile
Digital Core REIT is an S-REIT established with the principal investment strategy of investing, directly or indirectly, in a diversified portfolio of stabilized income-producing real estate assets located globally which are majorly used for data centre purposes, as well as assets necessary to support the digital economy. The company's geographical presence in North America (U.S. and Canada) and Germany. Company earns majority of its revenue from North America segment.
Performance
YTD Increase: +24.18%
H1 FY2023 Earnings Data:
Revenue: 53.39M
Revenue YoY Increase: -11.10%
EPS: <0.01
EPS YoY Increase: -59.60%
Dividends Distribution 2023
Pay Date: 28/09/2023 1 Share Dividends 0.02618SGD
Pay Date: 31/03/2023 1 Share Dividends 0.02538SGD
2. Mapletree Ind Tr (ME8U)
Company Profile
Mapletree Industrial Trust is a real estate investment trust focusing on industrial properties and data centers. Its property portfolio consists of 85 properties in Singapore and 56 properties in North America (including 13 data centers held through a joint venture with its sponsor, Mapletree Investments Private Limited). Types of property owned include data centers, high-tech buildings, business parks and general industrial. The trust is externally managed by Mapletree Industrial Trust Management Limited, a subsidiary of its sponsor, which owns around 31% stake in the trust.
Performance
YTD Increase: +16.03%
Q2 FY2024 Earnings Data:
Revenue: 174.12M
Revenue YoY Increase: -0.79%
EPS: 0.03
EPS YoY Increase: -9.50%
Dividends Distribution 2023:
Pay Date: 05/23/2023 1 Share Dividends 0.0332SGD
Pay Date: 05/09/2023 1 Share Dividends 0.0091SGD
Pay Date: 06/07/2023 1 Share Dividends 0.0248SGD
Pay Date: 07/06/2023 1 Share Dividends 0.0333SGD
Pay Date: 14/03/2023 1 Share Dividends 0.0339SGD
3. AIMS APAC Reit (O5RU)
Company Profile
AIMS APAC REIT operates as a real estate investment trust. It invests in a portfolio of the income-producing real estate located throughout the Asia-Pacific region that is used for industrial purposes, including, but not limited to, warehousing and distribution activities, business park activities, and manufacturing activities. It operates through the Singapore and Australia geographical segments out of which Singapore accounts for the majority revenue.
Performance
YTD Increase: +13.92%
H1 FY2024 Earnings Data:
Revenue: 86.83M
Revenue YoY Increase: +4.37%
EPS: 0.04
EPS YoY Increase: -44.31%
Dividends Distribution 2023:
Pay Date: 22/12/2023 1 Share Dividends 0.0234SGD
Pay Date: 22/09/2023 1 Share Dividends 0.0051SGD
Pay Date: 20/07/2023 1 Share Dividends 0.0180SGD
Pay Date: 28/06/2023 1 Share Dividends 0.0265SGD
Pay Date: 24/03/2023 1 Share Dividends 0.02586SGD
4. CapLand Ascendas REIT (A17U)
Company Profile
CapitaLand Ascendas REIT is a real estate investment trust focusing on the industrial and business space. As of Dec. 31, 2022, it held a SGD 16.4 billion portfolio of 220 properties across Singapore, Australia, Europe, and the U.S. The property types encompass business and science parks, high-specification industrial properties, data centers, light industrial properties, and logistics and distribution centers. The trust is externally managed by Ascendas Funds Management, a subsidiary of CapitaLand Investment, which owns an 18% stake in the trust.
Performance
YTD Increase: +13.41%
H1 FY2023 Earnings Data:
Revenue: 718.11M
Revenue YoY Increase: +7.74%
EPS: 0.09
EPS YoY Increase: -8.81%
Dividends Distribution 2023
Pay Date: 31/08/2023 1 Share Dividends 0.01578SGD
Pay Date: 26/06/2023 1 Share Dividends 0.06141SGD
Pay Date: 07/03/2023 1 Share Dividends 0.07925SGD
5. UtdHampsh Reit USD (ODBU)
Company Profile
United Hampshire US REIT is a Singapore REIT investing in a diversified portfolio of stabilized income-producing grocery-anchored and necessity-based retail properties, and modern, climate-controlled self-storage facilities, located in the United States of America. The company's objectives are to provide unitholders with regular and stable distributions and to achieve long-term growth in distribution per unit and net asset value per unit while maintaining an appropriate capital structure. The group’s reportable operating segments are Grocery and Necessity Properties, and Self-Storage Properties. The company generates the majority of its revenue from the Grocery and Necessity Properties segment.
Performance
YTD Increase: +12.52%
H1 FY2023 Earnings Data:
Revenue: 36.01M
Revenue YoY Increase: +13.35%
EPS: 0.02
EPS YoY Increase: -20.98%
Dividends Distribution 2023
Pay Date: 28/09/2023 1 Share Dividends 0.0265GD
Pay Date: 31/03/2023 1 Share Dividends 0.0297SGD
6. Frasers Centrepoint Tr (J69U)
Company Profile
Frasers Centrepoint Trust is a real estate investment trust listed on the Singapore Exchange that predominately invests in suburban retail assets in Singapore. Its portfolio consists of 11 retail malls (of which two are not wholly owned) and one office property with a total valuation of SGD 7.6 billion as at Sept. 30, 2023. FCT also holds a: i) 30.97% interest in Hektar REIT, a retail-focused REIT in Malaysia; and ii) 43.7% interest in Changi City Carpark. The trust is externally managed by Frasers Centrepoint Asset Management, a wholly owned subsidiary of Frasers Property Limited that has a 41.2% direct and indirect interest in FCT.
Performance
YTD Increase: +11.70%
FY2023 Annual Report Data:
Revenue: 369.72M
Revenue YoY Increase: +3.58%
EPS: 0.12
EPS YoY Increase: +1.81%
Dividends Distribution 2023
Pay Date: 29/11/2023 1 Share Dividends 0.0602GD
Pay Date: 30/05/2023 1 Share Dividends 0.0613SGD
7. First Reit (AW9U)
Company Profile
First Real Estate Investment Trust is a healthcare REIT that operates acquires, develops, and holds properties such as hospitals, hotels, and residential properties. The company is focused on building a diverse portfolio of yield-accretive properties. The vast majority of the company's revenue is generated in Indonesia, followed by Singapore. The company considers merger and acquisition investment as a component of its operational growth strategy.
Performance
YTD Increase: +10.73%
H1 FY2023 Earnings Data:
Revenue: 53.99M
Revenue YoY Increase: +0.38%
EPS: <0.01
EPS YoY Increase: -5.26%
Dividends Distribution 2023
Pay Date: 22/12/2023 1 Share Dividends 0.0062GD
Pay Date: 25/09/2023 1 Share Dividends 0.0062SGD
Pay Date: 26/06/2023 1 Share Dividends 0.0062GD
Pay Date: 30/03/2023 1 Share Dividends 0.0066SGD
8. Mapletree Log Tr (M44U)
Company Profile
Mapletree Logistics Trust is a real estate investment trust focusing on logistics properties. As of March 31, 2023, the trust had a SGD 12.8 billion portfolio of 185 properties, spread across Singapore, Hong Kong, Japan, China, South Korea, Australia, Malaysia, Vietnam, and India. The trust is externally managed by Mapletree Logistics Trust Management Ltd, a subsidiary of Mapletree Investments Pte Ltd, which owns around a 32% stake in the trust.
Performance
YTD Increase: +10.69%
Q2 FY2024 Earnings Data:
Revenue: 186.69M
Revenue YoY Increase: +1.54%
EPS: 0.02
EPS YoY Increase: -2.56%
Dividends Distribution 2023:
Pay Date: 19/12/2023 1 Share Dividends 0.02268SGD
Pay Date: 19/09/2023 1 Share Dividends 0.02037SGD
Pay Date: 22/05/2023 1 Share Dividends 0.02502SGD
Pay Date: 13/03/2023 1 Share Dividends 0.02227SGD
9. Daiwa Hse Log Tr (DHLU)
Company Profile
Daiwa House Logistics Trust is a real estate investment trust established with the investment strategy of principally investing in a portfolio of income-producing logistics and industrial real estate assets located across Asia. The DHLT Portfolio comprises 16 high-quality properties that are diversified across different regions in Japan, including the Greater Tokyo region and core regional markets in Japan.
Performance
YTD Increase: +9.81%
H1 FY2023 Earnings Data:
Revenue: 30.90M
Revenue YoY Increase: -10.05%
EPS: 0.02
EPS YoY Increase: 9.52%
Dividends Distribution 2023:
Pay Date: 26/09/2023 1 Share Dividends 0.0261SGD
Pay Date: 30/03/2023 1 Share Dividends 0.0261SGD
10. Keppel DC Reit (AJBU)
Company Profile
Keppel DC REIT is a real estate investment trust that principally invests in real estate assets used primarily for data center purposes and assets necessary to support the digital economy. As of June 30, 2023, it held a SGD 3.7 billion portfolio of 23 properties across nine countries in Asia and Europe. Its properties are leased out as colocation, fully fitted and shell and core data centers. The trust is externally managed by Keppel DC REIT Management Pte. Ltd., and parent company Keppel Corporation Limited owns around a 20% stake in the trust.
Performance
YTD Increase: +9.72%
H1 FY2023 Earnings Data:
Revenue: 140.46M
Revenue YoY Increase: +3.63%
EPS: 0.05
EPS YoY Increase: -13.01%
Dividends Distribution 2023:
Pay Date: 14/09/2023 1 Share Dividends 0.05051SGD
Pay Date: 14/03/2023 1 Share Dividends 0.05165SGD
Summary
S-Reits show mixed performance in 2023: while some Reits demonstrated resilience with high positive gains, others struggled with a significant decline. For instance, $ManulifeReit USD(BTOU.SG)$ has experienced a significant decline since 2023, falling sharply by over 71.28%, marking the largest drop among all S-REITs.
Looking ahead to 2024, a strategic approach encompassing vigilant economic monitoring and robust risk management will be crucial in navigating the potential challenges and opportunities in the S-REITs landscape. Investors need to stay abreast of macroeconomic developments and engage in comprehensive risk assessments when considering investments in REITs.
Source: moomoo
Reference:
https://dollarsandsense.sg/2023-singapore-reits-performed-1st-quarter-2023/
https://www.businesstimes.com.sg/companies-markets/retail-investors-net-buy-s390-million-s-reits-h1-2023