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Singapore’s Top 5 Performing REITs

The Singapore stock market is home to a good number of gigantic real estate estate investment trusts (REITs).

The exchange boasts 26 listed REITs with market capitalisations above $1 billion. These gargantuan REITs come from a range of industries and offer a distribution yield of above 4%. 

A recent report from SGX provides some insights to these REITs.

From this list, I picked out the top five performers over the last three years (figures as of 16 August 2017, unless otherwise stated):

1. Ascendas India Trust (SGX: CY6U) lands in the top spot with a total return of 64.9%. The REIT owns seven information technology (IT) parks in India. Ascendas India offers a 5.1% distribution yield and weighs in with a $1.03 billion market cap.   

2. Mapletree Industrial Trust (SGX: ME8U) comes in second with a total three-year return of 61.9%. The industrial-based REIT sports a 6.3% distribution yield and has a market capitalisation of $3.3 billion.

3. Another Mapletree cousin, Mapletree Greater China Commercial Trust (SGX: RW0U) is in third place with a total return of 48.3%. The REIT owns three retail and commercial properties located in Hong Kong, Beijing and Shanghai and has a 6.7% yield. Mapletree Greater China Commercial Trust weighs in at a market cap of $3.1 billion.  

4. Ascendas Real Estate Investment Trust (SGX: A17U) lands in fourth place with a total return of 37.9%. The industrial-based REIT has 102 properties in Singapore and 29 properties in Australia. Ascendas REIT offers a 5.9% distribution yield and is Singapore’s largest REIT with market cap of $7.7 billion.  

5. Indonesian mall owner,  Lippo Malls Indonesia Retail Trust (SGX: D5IU), rounds up the top five with a total return of 36.7% over the last three years. The REIT has a market cap of $1.23 billion and a yield of 8.1%.  

For context, the SPDR STI ETF (SGX: ES3), an exchange traded fund that mimics the fundamentals of the Straits Times Index (SGX: ^STI) could be a good measuring stick for dividend-paying companies. As of 23 August 2017, the SPDR STI ETF was offering a dividend yield of 3.05%.

To be sure, the best performing REITs over the last three years might not be the best REITs to own for the next three years. As Foolish investors, we might want to put on our thinking hats to figure out how the REITs can continue to pay a sustainable distribution.   

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice.The Motley Fool Singapore has recommended shares of Singapore Exchange. Motley Fool Singapore contributor Chin Hui Leong doesn’t own shares in any companies mentioned.