5 REITs in Singapore With the Highest Yields

Real estate investment trusts (REITs) own income-producing properties such as shopping malls, offices, warehouses, business parks, hotels, and more.

In Singapore, REITs are obliged to distribute at least 90% of their taxable income to enjoy tax benefits. Therefore, by investing in REITs, investors are able to receive regular distributions, usually on a quarterly basis. The need to distribute most of their income also result in REITs having high yields. These are some of the main reasons why REITs are an attractive investment for income investors.

Here, we look at the five highest yielding REITs in the Singapore stock market right now (as of 12 December 2017):

1. Soilbuild Business Space REIT (SGX: SV3U) is first on the list with a distribution yield of 9.2%. It owns a total of 12 business parks and industrial properties in Singapore. Its portfolio of properties includes Solaris, Eightrium @ Changi Business Park, and Bukit Batok Connection. In the third quarter of 2017, the REIT’s distribution per unit (DPU) fell 1.8% year-on-year to 1.374 Singapore cents.

2. Coming in second is Lippo Malls Indonesia Retail Trust (SGX: D5IU), which is based in Indonesia. The REIT is currently yielding 8.6%. Its assets comprise of 21 retail malls and seven retail spaces located within other retail malls; all its assets are in Indonesia. The REIT’s DPU for 2017’s third quarter was flat at 0.86 Singapore cents.

3. IREIT Global (SGX: UD1U) is third in the list with a yield of 8.3%. Its portfolio currently consists of five freehold office properties in Germany. For the third quarter of 2017, the REIT reported a 9.6% year-on-year slump in DPU to 1.42 Singapore cents.

4. Fourth is Sabana Shariah Compliant REIT (SGX: M1GU). Singapore’s first listed Shari’ah compliant REIT is yielding 8.2% now. It has a portfolio of 20 properties in the high-tech industrial, warehouse and logistics, chemical warehouse and logistics, as well as general industrial sectors in Singapore. The REIT’s DPU for the third quarter of 2017 fell by 2.5% to 0.79 Singapore cents.

5. Cache Logistics Trust (SGX: K2LU) slots into the fifth spot. The REIT, which has a distribution yield of 8.1%, owns 19 logistics warehouse assets located in Singapore, Australia, and China. Its DPU for the third quarter of 2017 tumbled 12.8% to 1.541 Singapore cents.

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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 Sudhan P doesn’t own shares in any companies mentioned.