Singapore’s Retail REITs: Here’re the Best Performers  

The Singapore stock market boasts of 30 real estate investment trusts (REIT).

REITs can be organised by industry. A recent report, which covers 27 REITs, provided some insight on REITs that own retail malls. Here’re some highlights from the report (figures as of 30 May 2016, unless otherwise stated):

  1. Mapletree Commercial Trust (SGX: N21U) is the best performing retail REIT over the past three years; the owner of VivoCity recorded a total return of 6.3% (total return includes gains from reinvested dividends) over the past three years. Mapletree Commercial Trust, which has a market capitalisation of over S$3 billion, trades at a price to book (P/B) ratio of 1.1 and has a distribution yield of 5.7%.
  2. Suburban mall owner Frasers Centrepoint Trust (SGX: J69U) is in second place with a total return of 4.4% over the past three years. The REIT, which houses properties such as Causeway Point and Northpoint in its portfoliotrades at a P/B ratio of around 1 and has a market cap of $1.8 billion. It also offers a 6.1% distribution yield.
  3. CapitaLand Retail China Trust (SGX: AU8U) is next in line with a total return of 3.5% over the same timeframe above. The China-focused retail REIT offers a distribution yield of over 7% and trades at 0.9 times its book value.
  4. When it comes to distribution yields, Lippo Mall Indonesia Retail Trust (SGX: D51U) comes out tops with a 9.9% yield. But, the REIT’s total return over the past three years has been negative. It has a P/B ratio of 0.9.
  5. SPH REIT (SGX: SK6U), which currently owns only Paragon and Clementi Mall in Singapore, was listed in 2013 and has not quite reached the three year mark for its performance to be measured. The REIT has a trailing distribution yield of 6.1% and trades at a P/B ratio of one.

Looking back helps us understand how the REITs have fared over the past three years and gives us clues on the ones that might be worth following. 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 owns units in Frasers Centrepoint Trust.