High dividend yield REITs
REITs are undoubtedly one of the best type of stock to buy given their high dividend yields compared to other stocks and the general stock market.
In general, REITs give about 6 to 6.5% dividend yield on average compared to 2.5% for the Nikko AM STI ETF and 2 to 3% for general stocks.
The reason REITs can give such a good dividend yield is because the SGX requires REITs to give out at least 90% of their distributable income to shareholders. Furthermore, most properties owned by REITs are revenue generating, with high occupancy and a good income stream.
Here are 5 REITs that offer one of the highest dividend yields in the stock market.
Dividend yield is 8.6%, the highest in the Singapore REIT sector.
Lippo Mall Trust has 27 properties around Indonesia, in the cities of Sumatra, Java, Bali and Sulawesi. The total value of the portfolio assets is S$1.9 billion, with 3,429 tenants, 850,000 sqm of total lettable area and 94.3% occupancy.
A majority of their tenants re in the F&B sector, followed by Fashion and then supermarket/hypermarket.
Dividend yield is presently at 8.3%, presenting very strong income producing potential backed by well performing assets. Portfolio occupancy stood at 91%.
AIMS AMP Capital Industrial REIT is a REIT listed on the SGX. Their aim is to invest in high quality income producing industrial properties in Asia Pacific.
Their assets consist of cargo lift warehouses, ramp up warehouses, manufacturing properties, business parks, high tech factories and general industrial assets.
Properties are concentrated in the Eastern, Western and Northern parts of Singapore.
Cache logistics trust is giving 8% yield. The third highest in the Singapore REIT sector.
Cache Logistics Trust invests in quality income-producing industrial real estate used mainly for logistics. They however also have other types of real estate assets in Asia Pacific. The REIT holds 19 logistics warehouse properties in established logistics clusters in Singapore, Australia and China.
Most of the properties are in Singapore (11), followed by Australia (7) and China (1). Portfolio occupancy is healthy at 98.3%, presenting a strong and secure income profile.
IREIT is the first non-industrial REIT that has a high dividend yield of 7.8%. The REIT’s assets are located in key German cities of Berlin, Bonn, Darmstat, Munster and Concor.
Occupancy is high at 98.7%, though the high leverage of 41.3% will be of some concern to shareholders in the even there is some financial distress if interest rates rise.
PropertyInvestSG provides a summary table of REITs and related information for your analysis.
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