3 Quick Things to Learn About Singapore’s Industrial REITs

Do you own units in real estate investment trusts (REITs) that invest in industrial properties?

If you do, then a recent report prepared by bourse operator Singapore Exchange Limited (SGX: S68) might be of interest to you. There are a total of seven industrial REITs listed on Singapore’s stock market and from the report, you can get a sense of how the REITs stack up against each other.

Here are some of the statistics (as of 16 December 2015) which may be of interest:

  1. The average price to book ratio among the seven industrial REITs is 0.9 and the average indicative yield is 8.4%. Sabana Shariah Compliant Industrial REIT (SGX: M1GU) has the highest yield at 10%. The headwinds in the industrial sector may be the reason for its high yield. At the other end of the spectrum is Ascendas Real Estate Investment Trust (SGX: A17U), which is offering a yield of 6.9%.
  2. The largest industrial REIT by market capitalisation goes to Ascendas REIT at $5.4 billion. This is followed by Mapletree Industrial Trust (SGX: ME8U) with a $2.7 billion market cap. The smallest of the lot would be the $500 million Sabana Shariah Compliant Industrial REIT.
  3. If the price of your REITs are down for the year, you’re not alone. The seven industrial REITs have posted a total average decline of 7.2% since the start of 2015. Notably, Singapore’s market barometer, the Straits Times Index (SGX: ^STI), has retreated by more than 16% over the same period.

The top industrial REIT this year is Mapletree Industrial Trust with a 9.7% total return. The weakest of the bunch is Cache Logistics Trust (SGX: K2LU) – the REIT has suffered an 18.7% decline. Mapletree Industrial Trust also takes the crown for the highest total return over three years among the seven industrial REITs.

The statistics above may help you put into context the performance, valuation, and size of your own industrial REIT holdings.

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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 Chin Hui Leong doesn’t own shares in any companies mentioned.