Three REITs Giving You a Fatter Pay Check

singapore currencyReal estate investment trusts (REITs) can be a great source of income for investors. As a group, the REITs can be represented by the FTSE Straits Times Real Estate Investment Trusts Index (SGX: FSTAS8670). If you’re wondering why REITs are a good source of income, just check out the index’s distribution yield of 5.17% (as of 28 March 2013), which is more than double the Straits Times Index’s (SGX: ^STI) 2.4%.

We’re now in Earnings Season and here are three REITs who will be giving out fatter pay checks.

First up’s Cambridge Industrial Trust (SGX: J91U). The REIT specialises in a portfolio of 51 industrial, logistics and warehousing properties located in Singapore. Last week, it made unit holders’ wallets fatter by announcing a 5.4% hike in its distribution per unit (DPU) to 1.23 cents for the first quarter of 2013 along with an 8.4% increase in distributable amount to S$15.1m. CIT has been growing its quarterly distributions on a quarter-on-quarter basis consecutively starting from the third quarter of 2012.

Next up is Mapletree Industrial Trust (SGX: ME8U) which reported its full year results on Tuesday evening and rewarded unit holders with a small uptick in quarterly DPU of 2.2% to 2.37 cents. MIT’s also another pure local play with 81 properties in its portfolio of flatted factories, business parks, warehouses and industrial buildings. The REIT took its maiden bow on the Mainboard exchange on Oct 2010 and has since increased quarterly distributions for eight consecutive quarters – increasing its distribution by 56% from 1.52 cents in the third quarter of 2010/2011 to the current distribution of 2.37 cents.

Rounding up the trio, we have First REIT (SGX: AW9U) which also reported first quarter results today. There was a 9.4% hike in quarterly DPU from 1.59 cents to 1.74 cents if we exclude one-time divestment gains from last year. If that was included, 2012’s first quarter actually saw distributions of 1.93 cents instead of 1.59 cents. Out of its stable of 12 properties, 11 are related to healthcare, with one hotel & country club as the odd one out.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Chong Ser Jing doesn’t own shares in any companies mentioned.