Singapore is one of the few countries where investing is as common as buying groceries.
Among the many assets, in recent years, Singaporeans have been leaning more toward Real Estate Investment Trusts (REITs).
16% of the citizens in Singapore invest in REITs which makes around 464,000 people from the whole population.
And considering the diversification and high yield of REITs, we are not in the least surprised!
REITs allow ordinary citizens to invest in properties without owning any building or apartment.
The beauty of this asset is that you get to boost your active and passive income without spending millions on purchasing a property.
Yes, you can put your money in a savings account, but that won’t get you anywhere near the earnings a REITs dividend can provide!
The Singapore Exchange Market (SGX) currently has 44 REITs listed which makes it hard to choose. But you don’t have to worry about that, because I did the research for you!
Without any more delay, let’s see what are the best REITs in Singapore!
Top 11 REITs in Singapore You Don’t Want to Miss
When planning your retirement, investing is the best way to grow your savings. Older generations tend to look more into bonds and their contributions.
But as the population grows, young people dip their fingers into the investment waters as well.
And mostly they go for investing in stocks and property.
The key pillars in every serious investor’s portfolio are strong REIT companies. Interestingly enough, in the last couple of years – at the beginning of 2020 – SGX was looking at an increase in the iEdge S-REIT index i.e. the REIT market.
Now, for our main point – which are the greatest REITs in Singapore?
I did my homework and I can safely say that I’ve found the 11 best REITs Singapore has today!
1. Mapletree Industrial Trust (SGX: ME8U)
- Type of REIT: Commercial REIT
- Share Price: S$2.5
- Current Dividend Yield: 1.40%
Mapletree Industrial Trust (MIT) is one of the few trusts that are under Mapletree Investments Pte Ltd.
It is an investment trust that primarily focuses on income-producing real estate in the industry sector.
This REIT doesn’t just focus on the Singaporean market but also branches out to other countries.
It currently has 86 facilities in Singapore and 57 in North America.
These include business parks, data centers, hi-tech buildings, factories, and other buildings.
What’s interesting is that, although it didn’t get noticed so much at the beginning of 2021, this company still managed to grow its distribution per unit (DPU).
In fact, over the last few years, the DPU has grown to around 5%.
In the last report, MIT reported a net income of S$2229.44 million and total revenue of S$567.03 million.
2. CapitalLand Integrated Commercial Trust (SGX: C38U)
- Type of REIT: Retail and Commercial REIT
- Share Price: S$2.07
- Current Dividend Yield: 0.18%
With only 2 properties in 2002, CapitalLand Integrated Commercial Trust (CICT) grew to be the third-largest REIT in Singapore with 23 properties.
Predominantly, it is focused in Singapore, but 4% of its assets come from Germany.
The reason why it is so popular hides behind its transformation skills. Namely, CICT is known for bringing a modern vibe to older facilities.
CICT showed in its annual report (FY2021) that it reached S$182,531 million more Net Property Income (NPI) in 2021 in contrast to 2020.
Plus, the overall asset climbed 3.5% in comparison to 2020.
But, we have to mention that the DPU had a slight decrease of 0.51 cents.
3. Mapletree Commercial Trust (SGX: N2IU)
- Type of REIT: Commercial REIT
- Share Price: S$1.82
- Dividend Yield: 5.34%
Mapletree Commercial Trust (MCT) is one of the REITs-financed Mapletree Investments Pte Ltd.
It entered the SGX in 2011 and the interesting thing about this investment fund is that it only has 5 properties.
However, all of them are big names and encompass around 5 million square feet, valued at S$8,784 million.
In 2021, MCT rose 5.6% in NPI and a remarkable 7.3% in gross revenue. This is also reflected in the dividend yield that climbed by 1.53%.
In the near future, MCT is planning on conducting several mergers and climbing the ladder of the best REITs Singapore!
4. Frasers Centerpoint Trust (SGX: J69U)
- Type of REIT: Commercial and Retail REIT
- Share Price: S$2.28
- Dividend Yield: 5.24%
Frasers Centerpoint Trust (FCT) invests in suburban properties mainly in Singapore. The retail portfolio includes 9 shopping malls – Century Square, Waterway Point (40%-interest), Northpoint City North Wing (including Yishun 10 Retail Podium), Tiong Bahru Plaza, Causeway Point, Changi City Point, White Sands, Tampines 1, and Hougang Mall.
In the report for the first quarter of 2022 (1QFY2022), FCT highlights a remarkable 97.2% occupancy rate. The NPI rose by 122.4% and so did the DPU by 33.7%.
It’s worth noting that at the beginning of 2022, FCT had a slight derail and the stocks fell by 0.437%.
Nonetheless, the SGX database reports that the total assets of this REIT are S$5,898.80 million with a total debt of S$1,808.92 million.
5. Ascendas Real Estate Investment Trust (SGX: A17U)
- Type of REIT: Commercial and Industrial REIT
- Share Price: S$2.8
- Dividend Yield: 3.34%
Ascendas is one of the pioneers in the Singapore REITs sector.
Its portfolio of 220 properties varies through 4 major areas – business spaces, industrial properties, data centres, and logistics and distribution centres.
It has 96 in Singapore, 34 in Australia, 41 in the UK and Europe, and an additional 41 in the US.
The latest asset valuation, summed all of these to the total investment property value of S$16,293.7 million.
Quite recently, this REIT publicised the financial statements for 2021. It shows an increase of 18.6% in the NPI and a 3.9% increase in DPU amounting to S$7.598.
This is due to several major acquisitions, developments, and 4 divestments.
6. Mapletree North Asia Commercial Trust (SGX: RW0U)
- Type of REIT: Commercial REIT
- Share Price: S$1.08
- Dividend Yield: 6.23%
The asset portfolio of this commercial REIT consists of real estate investments in Hong Kong, Japan, South Korea, and some of the biggest cities in China like Beijing, Shanghai, Guangzhou, and Shenzhen.
This is the first REIT listed on the SGX and offers the chance to invest in property outside of Singapore.
In FY2021, MNACT reported a higher NPI of 14.9% than that of 2020, reaching S$247.4 million.
Subsequently, the gross revenue also jumped to S$328,021 million.
This increase is due to the lowered rental reliefs for Festival Walk’s tenants and the acquisition of the Hewlett-Packard Japan Headquarters Building.
This REIT’s Assets Under Management (AUM) are S$8,088.67 million.
7. Keppel DC REIT (SGX: AJBU)
- Type of REIT: Specialised REITs
- Share Price: S$2.19
- Current Dividend Yield: 1.60%
Keppel DC specialises in renting spaces to data centres.
It is the first REIT of this specialisation type, so it’s no wonder that it’s one of the best REITs in Singapore!
As of right now, it has 20 data centres all over Asia with 6 in Singapore.
It is sponsored 50-50 by Keppel Telecommunications & Transportation and Keppel Capital Holdings Pte. Ltd.
In the last 5 years, this REIT has been steadily growing, with a minor setback at the beginning of 2022.
The DPU marks a 7.4% increase from 2021 and a 2.1% in gross revenue. Plus, as of 31 December 2021, the portfolio occupancy achieved the highest percentage since the company was listed on the SGX – 98.3%.
8. Suntec REIT (SGX: T82U)
- Type of REIT: Commercial REIT
- Share Price: S$1.55
- Current Dividend Yield: 1.47%
Suntec REIT’s portfolio is devised from several commercial assets in the UK, Australia, and Singapore.
Specifically in Singapore, it holds interests in Suntec City, One Raffles Quay, and MBFC Properties.
There are 5 more commercial buildings in Australia and 2 in the UK.
The main aim of Suntec is to grow into people’s first choice when searching for an office or retail REIT!
In the financial results for 2021 (FY2021), this REIT showed an increase in revenue of 15.3% which led to the NPI jumping up by 30.3%, and the DPU, by 17%.
This report shows that Suntec’s total assets are S$11,688.68 million.
9. Mapletree Logistics Trust (SGX: M44U)
- Type of REIT: Commercial REIT
- Share Price: S$1.73
- Current Dividend Yield: 0.42%
Mapletree Logistics Trust (MLT) is a leader in logistics real estate centred in Asia.
It started with only 18 properties and now holds more than 150 facilities across Asia and Australia.
The interesting part about MLT is that it places a special emphasis on warehouses.
This makes this REIT indirectly responsible for the delivery of most products that you order online.
In the financial statement for FY2021, MTL disclosed a S$72,607 million increase in NPI coupled with a small growth of 0.354 cents in DPU.
And don’t get fooled by the low dividend yield. The current one stands at 0.42% but this is only for the beginning of 2022.
A year prior, this REITs dividend rose to 5.43%!
10. Keppel REIT (SGX: K71U)
- Type of REIT: Commercial REIT
- Share Price: S$1.11
- Current Dividend Yield: 2.59%
Keppel REIT is one of Asia’s biggest office owners. Don’t be discouraged by the low amount of properties this company owns.
There are 11 buildings in Singapore, South Korea, and Australia, but these are some of the most prominent ones in Asia.
Some of them include 79.9% interest in Ocean Financial Centre, a one-third interest in Marina Bay Financial Centre, 99.4% interest in T Tower in Seoul, 100% interest in Blue & William, still under development in Sydney – and more!
In 2021, Keppel gained a 0.6% increase in DPU and NPI of 27.3%. This comes as no surprise seeing that the company has a stellar 98% occupancy of its properties.
11. Frasers Logistics & Commercial Trust (SGX: BUOU)
- Type of REIT: Commercial REIT
- Share Price: S$1.4
- Dividend Yield: 5.49%
Frasers Logistics & Commercial Trust (FLCT) is fully owned by Frasers Property Limited.
This REIT has a portfolio consisting of 103 commercial and logistics properties across Australia, Germany, the UK, Singapore, and the Netherlands.
All of these are worth around S$7.3 billion.
In the first quarter of 2022 (1QFY2022), FLCT reported that its logistics and investment portfolio had 100% occupancy and an additional 90% to the commercial portfolio.
It’s worth noting FLCT’s emphasis on its debt plan. Currently, it has a debt of around S$2,681.71 million.
However, it has devised a detailed debt maturity plan that would require some additional increase during FY2024-FY2026, but after that, it predicts a reduction of up to S$2,200 million.
The Verdict
These are the best REITs Singapore currently offers!
Regardless of which one you choose, you are in for an increase in your active and passive income.
If you have trouble doing this on your own, always get help from a financial advisor.
But if you’re confident in doing so, I advise starting off with a good brokerage.
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