5 Top- Performing REITs

Singapore’s real estate investment trusts (REIT) have gotten off to a steady start in 2016.

According to a recent market summary from bourse operator Singapore Exchange Limited (SGX: S68), the SGX S-REIT 20 Index had registered a 7.2% total return from the start of 2016 to 22 March 2016. The newly formed index consists of 20 Singapore-listed real estate investment trusts (REITs).

The article from the Singapore Exchange had also contained details on each REIT’s performance over the past three years. I have picked out the top five for a further look (data as of 22 March 2016, unless otherwise stated):

  1. Mapletree Industrial Trust (SGX: ME8U) had been the top performing REIT over the past three years with a total return of 42%. The trust is focused on industrial properties and has over 2,000 tenants in its portfolio. You can find out more about Mapletree Industrial REIT in here.
  2. Mapletree Commercial Trust (SGX: N21U) is in the second spot with a total return of nearly 24% over the past three years. Contrary to its name, the REIT is home to the popular VivoCity shopping mall. It had a yield of 5.7% and a price to book ratio of 1.1.
  3. In third place is a component of Singapore’s market barometer the Straits Times Index  (SGX: ^STI), namely, CapitaLand Mall Trust (SGX: C38U). The REIT was the first to be listed in Singapore (all the way back in 2002) and has logged in a total return of over 21% in the past three years. CapitaLand Mall Trust, which houses some of the most popular shopping malls in Singapore, also weighs in as the biggest REIT here with a market capitalisation of $7.7 billion. You can head here to find out more about CapitaLand Mall Trust.
  4. A more recent debutant, SPH REIT (SGX: SK6U) is also among the top performing REITs. Its total return over the past three years came in at 21%. To be sure, it’s still early days for SPH REIT; the trust was listed only in 2013 and currently houses just two properties, namely Paragon and Clementi Mall. SPH REIT had a yield of 5.7% and a price to book ratio of 1.0. This is a good place to find out more about the REIT.
  5. We round off the quintet with Frasers Commercial Trust (SGX: ND8U). The REIT gave a return of over 14% in the past three years. There could be more to come for the REIT. The REIT’s sponsor and manager, Frasers Centrepoint Ltd (SGX: TQ5), had acquired Australia-based property developer Australand in 2014. My colleague Stanley Lim believes that this could provide a pipeline of properties for Frasers Commercial Trust in the future.

Exploring the SGX S-REIT 20 Index components helps give us clues on which REIT are performing best. This may give us a head-start on our investing homework that follows.

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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.