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

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

REITs can be organised by industry. Industrial REITs, as defined by the Global Industry Classification Standard (GICS), is one sector which makes up Singapore’s REIT universe. A recent report, which covers 27 REITs, provides some insight into the Industrial REITs. Here’re some interesting facts and figures (figures as of 30 May 2016, unless otherwise stated):

  1. Mapletree Industrial Trust (SGX: ME8U) is the best performing industrial REIT over the past three years. The REIT recorded a total gain of 11.4% for the period. Mapletree Industrial Trust trades at a price to book (P/B) ratio of 1.2 and has a distribution yield of 6.9%. The REIT also has a market capitalisation of nearly $3 billion.
  2. The $6.2 billion Ascendas Real Estate Investment Trust (SGX: A17U) weighs in at second place with a total return of 3.3% over the past three years. The REIT, which is also a component of the Straits Times Index (SGX: ^STI)trades at a P/B ratio of 1.1 and offers a 6.5% distribution yield.
  3. AIMS AMP Capital Industrial REIT (SGX: O5RU) is next in line with a total return of 0.4% for the period. The REIT, which has a market cap of $872 million, offers a distribution yield of 8.6% and is priced at 0.9 times its book value.
  4. It could be important to note that Industrial REITs in Singapore  do not expect the current year to be a good one. This may have led to a lackluster performance overall in the industry.
  5. When it comes to distribution yields, Cache Logistics Trust (SGX: K2LU) comes out tops with a 9.5% yield. But, the total returns for the REIT over the past three years has been negative.

Looking back helps us understand how the various 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.

Learn more about investing and get more investing tips and tricks, FREE by signing up here for The Motley Fool Singapore's weekly investing newsletter, Take Stock Singapore.

Like us on Facebook to follow our latest hot articles. The Motley Fool's purpose is to help the world invest, better.

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 company mentioned.