From SGX’s stockfact database, here’s a list of REITs that are trading between 6 to 8% of dividend yield.
Quite a good spread of REITs to choose from.
Quick calculation shows that if you put SGD 10,000 into the market at 6%, you’ll be getting SGD 50 a month.
Put SGD 100,000, get SGD 500 a month. Put SGD 200,000, get SGD 1,000 a month. Quite a decent monthly return for a passive instrument.
Personally, I like to stick to the 6 to 7% range of REITs and enter when they trade at those levels. Those trading at 5 to 6% are on the tighter end which I feel may be fully priced. While those trading about 7 or 7.5% represent very good monthly returns, I usually do more homework, such as looking at historical price movement or fundamentals, to determine if it’s a dividend yield trap. Too high yield sometimes mean a dividend yield trap i.e. investor can reap the monthly dividends, but there are likely to be capital losses because of fundamental issues (poor management, too high cost of borrowing, sector headwinds etc.).
Notable picks include Mapletree family for it’s strong Temasek linked sponsor, First REIT for healthcare exposure, CRCT for China retail exposure, Frasers family for their distinguished track record and Manulife US REIT for US exposure and sound management (they closed an acquisition shortly after IPO)
- AIMS AMP Capital Industrial REIT (7.7)
- Ascendas Hospitality Trust (6.8)
- Ascendas Real Estate Investment Trust (6.8)
- Ascott Residence Trust (6.5)
- BHG Retail REIT (6.6)
- Capitaland Retail China Trust (6.3)
- Croesus Retail Trust (6.4)
- ESR REIT (7.1)
- Far East Hospitality Trust (6.3)
- First REIT (6.4)
- Frasers Commercial Trust (7)
- Frasers Hospitality Trust (6.6)
- IREIT Global (8)
- Manulife US REIT (6.8)
- Mapletree Greater China Commercial Trust 6.6)
- Mapletree Industrial Trust (6.2)
- Mapletree Logistics Trust (6.2)
- OUE Commercial REIT (6.8)
- OUE hospitality Trust (6.8)
- Starhill Global REIT (6.5)
- Viva industrial trust (7.7)
If you find the above interesting and would like to get started on investing in REITs, we would love to be with you on the journey. One place you can get started on finding out more is our REIT data tracker and list of property and REIT events.
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