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5 REITS That Have Grown Their DPU in 2018

REITs have always been a favourite investment choice for risk-averse investors because of their stable earnings qualities. Moreover, the better ones can consistently grow their earnings, as well as distribution per unit (DPU), over time.

In this article and a previous article, we’re looking at five REITs that have grown their DPU in 2018. The three REITs highlighted previously were:

  1. CapitaLand Mall Trust (SGX: C38U)
  2. Keppel DC REIT (SGX: AJBU)
  3. CapitaLand Commercial Trust (SGX: C61U)

REIT No. 4

Next on our list is Capitaland Retail China Trust (SGX: AU8U), or CRCT, a Singapore-based real estate investment trust (REIT) investing in retail real estate in China. The trust’s shopping malls are located in China, Hong Kong, and Macau.

For the year ended 31 December 2018, CRCT grew its DPU by 1.2% year on year to 10.22 Singapore cents. The higher DPU came as a result of higher distributable income. On the other hand, CRCT reported that gross revenue was down 2.8% year on year to S$222.7 million. Similarly, net property income fell 1.2% year on year to S$147.4 million. The year-on-year decline in gross revenue and NPI (net property income) was due to the divestment of a property.

At its current price of S$1.51, CMT has a distribution yield of 6.8%.

REIT No. 5

The final REIT Frasers Centrepoint Trust (SGX: J69U), or FCT, which has a property portfolio comprising of the following suburban retail properties in Singapore: Causeway Point, Northpoint City North Wing (including Yishun 10 Retail Podium), Anchorpoint, YewTee Point, Bedok Point, and Changi City Point. It also holds a 31.15% stake in Hektar Real Estate Investment Trust, a retail-focused REIT in Malaysia.

For the year ended 30 September 2018, FCT grew its DPU by 1.0% year on year to a record 12.015 Singapore cents. The stronger DPU came as a result of stronger underlying business performance for the year. In 2018, gross revenue grew 6.5% to S$193.4 million, while net property income improved by 5.9% to S$137.2 million.

At its current price of S$2.24, FCT has a distribution yield of 5.4%.

Conclusion

There you go, five REITs that grew their DPU in 2018.

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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 Lawrence Nga doesn’t own shares in any companies mentioned. The Motley Fool Singapore has a recommendation for Capitaland Mall Trust, Frasers Centrepoint Trust, and Capitaland Retail China Trust.