There are 34 Real Estate Investment Trusts (REITs), five stapled trusts and three property trusts listed on Singapore’s stock exchange. The sector has a combined market capitalisation of nearly S$100 billion, with Retail, Industrial and Office REITs making up the largest segments.
In general, the REIT structure is one of Singapore investors’ favourite investment vehicles, mainly due to the predictability of their earnings over the long term.
Yet, not all REITs are created equally, and some perform stronger than the rest over the longer term. In this article, I’ll look at three best-performing Singapore REITs in the last three years (data as of 26 April 2019).
The first REIT on our list is Mapletree Logistics Trust (SGX: M44U). As a quick introduction, Mapletree Logistics Trust or MLT is a real estate investment trust (REIT) that owns 141 logistics properties around the Asia-Pacific region including Singapore, Hong Kong, Japan, China, South Korea, Australia, and others.
In the last three years, MLT’s total return to shareholders was 66.4%. Not only did it perform well on a three-year basis but MLT delivered 24.9% total return to shareholders in the last 12 months.
At its current price of S$1.49 per unit, MLT is trading at a Price-To-Book (PB) of 1.16 and a distribution yield of 5.3%.
The next REIT on our list is Ascendas Hospitality Trust (SGX: Q1P). As a quick overview, Ascendas Hospitality Trust (SGX: Q1P) or AHT is a stapled group consisting of Ascendas Hospitality Real Estate Investment Trust (REIT) and Ascendas Hospitality Business Trust. AHT owns a total of 14 hotels located in Australia, Japan, South Korea and Singapore.
In the last three years, AHT’s total return to shareholders was 68.6%. Moreover, AHT continued its strong performance recently, delivering 24.5% total return to shareholders in the last 12 months.
At its current price of S$0.92 per unit, AHT is trading at a PB of 0.94 and a distribution yield of 6.4%.
The final REIT on our list is Mapletree North Asia Commercial Trust (SGX: RW0U). As a quick overview, Mapletree North Asia Commercial Trust or MNACT is a Singapore-based commercial REIT with nine properties in China, Hong Kong, and Japan. In other words, it’s a REIT focused mainly on international properties.
MNACT is the best performing REIT in terms of shareholder returns in the last three years. During this period, MNACT’s total return to shareholders was 72.1%. Similar to the two REITs above, MNACT’s performance in the last 12 months remained strong with a total return to shareholders of 28.2%.
At its current price of S$1.37 per unit, MNACT is trading at a PB of 1.04 and a distribution yield of 5.7%.
From the above, we can see that all three REITs have delivered good returns to shareholders over the last three years. Nevertheless, investors should be reminded that past performance is no guarantee of future returns. Thus, it’s important that they carry out further research into these REITs before buying any stocks.
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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. Motley Fool Singapore recommended the shares of Mapletree Logistics Trust and Singapore Exchange Limited.