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3 REITs Dishing Out Distributions on Wednesday

There are three real estate investment trusts (REITs) going ex-dividend tomorrow. In other words, you need to own them before that day if you wish to receive their distributions. Let’s look further.

CapitaLand Mall Trust (SGX: C38U)

CapitaLand Mall Trust is a retail REIT which owns 15 shopping malls in Singapore, including Bugis Junction, Junction 8, and Plaza Singapura. CapitaLand Mall Trust was the first REIT to be listed in our city-state in July 2002.

The retail REIT is giving out 1.56 Singapore cents per unit for the period from 8 November to 31 December 2018.

For the full year ended 31 December 2018, CapitaLand Mall Trust’s gross revenue increased by 2.2% to S$697.5 million mainly due to an acquisition of the remaining 70% stake in Westgate that the REIT did not own. Meanwhile, net property income rose 3.2% to S$493.5 million, and distribution per unit (DPU) climbed 3% to 11.50 cents, up from 11.16 cents in 2017.

Richard R Magnus, chairman of the CapitaLand Mall Trust’s manager, commented on the REIT’s latest performance:

“Through proactive asset and capital management, CMT has delivered another set of creditable results for FY 2018 despite challenges in the retail industry. The resilient performance is a testament to the quality of CMT’s portfolio, which is underpinned by its attractive locations and diverse tenant mix. Cognisant of the challenges ahead – which include slowdown in the global and Singapore economies, uncertainty in the interest rate environment and competition from the completion of new shopping malls – we remain vigilant and will continually explore new ways to differentiate our malls from the competition and increase customer engagement.”

CapitaLand Mall Trust’s unit price closed at S$2.38 on Monday, translating to a price-to-book (PB) ratio of 1.2 and a trailing distribution yield of 4.8%.

Mapletree Commercial Trust (SGX: N2IU)

Mapletree Commercial Trust owns a portfolio of five office and retail assets in Singapore, including the country’s largest retail mall, VivoCity.

Mapletree Commercial Trust is dishing out 2.33 Singapore cents per unit for its fiscal third quarter.

Gross revenue for the REIT’s three months ended 31 December 2018 increased by 2.6% year-on-year to S$112.5 million mainly driven by higher contribution from VivoCity. Net property income grew 2.2% while DPU inched up by 1.3%, from 2.30 cents to 2.33 cents.

Sharon Lim, chief executive of Mapletree Commercial Trust’s manager, gave some updates on VivoCity in the earnings release:

“Year to date, we have embarked on a series of changes at VivoCity, and this includes some rigorous management of tenant mix particularly in 3Q FY18/19. As a result, there was a transitory impact on VivoCity’s tenant sales. These changes, however, will strengthen VivoCity’s appeal and long-term positioning. Momentum will pick up once the changes are completed.”

Mapletree Commercial Trust’s units last traded at S$1.78 apiece on Monday. At that price, the REIT had a PB ratio of 1.2 and a trailing distribution yield of 5.1%.

Suntec Real Estate Investment Trust (SGX: T82U)

Suntec REIT owns retail and office assets in Singapore and Australia. In our country, the REIT is the owner of the huge office and retail asset, Suntec City.

Suntec REIT is paying 2.59 Singapore cents per unit for its fourth quarter.

For the 2018 financial year, gross revenue improved by 2.6% year-on-year to S$363.5 million but net property income fell 1.4% to S$241.0 million. DPU for the year declined too, inching down by 0.2% to 9.988 Singapore cents.

Suntec REIT’s unit price last closed at S$1.93 on Monday, giving a PB ratio of 0.9 and a trailing distribution yield of 5.2%.

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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 units of Mapletree Commercial Trust and CapitaLand Mall Trust. Motley Fool Singapore contributor Sudhan P owns units in CapitaLand Mall Trust.