The Singapore stock exchange currently has 34 Real Estate Investment Trusts (REITs), five stapled trusts and three property trusts. In total, the sector has a market capitalisation of almost S$100 billion, the most substantial chunk of the segment comes from Retail, Industrial and Office REITs.
Looking into Singapore investment thrusts, it is easy to see that Singaporean investors favour REIT structures since these investments have earnings predictability. While not all REITs are created equally, some perform better than others, and this is what Motley Fool discussed in their article early this year. Does their claim still hold?
REIT 1: Mapletree Logistics Trust (SGX: M44U)
This REIT that owns as much as 141 logistics properties in the APAC region, mainly in Hong Kong, South Korea, China, Japan, Australia, and Singapore. In the past three years, MLT posted a total return to shareholders of 66.4%. Its strong performance in that span of years has allowed the REIT to deliver 24.9% total return to its shareholders in the past 12 months. Looking at its current data, it seems that Mapletree remains one of Singapore’s best-performing REITs. It has a current price of S$1.66 per unit, MLT is trading at a Price-To-Book (PB) of 1.29, with a dividend payout ratio of 52.20%.
REIT 2: Ascendas Hospitality Trust (SGX: Q1P)
Ascendas Hospitality Trust (AHT) is a stapled group that has a real estate arm, the Ascendas Hospitality Real Estate Investment Trust and a business arm, the Hospitality Business Trust. To date, AHT claims ownership of 14 hotels spread across the APAC region, mainly in Japan, Australia, South Korea, and Singapore.
For the past three years, the total return to shareholders reached 68.6%. AHT is still performing well with a current price of S$1.15 from S$0.92 in the first report. It is now trading at a PB of 1.16 and has a dividend payout ratio of 80.40%.
REIT 3: Mapletree North Asia Commercial Trust (SGX: RW0U)
The third REIT to complete the list is Mapletree North Asia Commercial Trust (MNACT). This commercial REIT based in Singapore boasts of nine international properties located in Hong Kong, Japan, and China.
In terms of shareholder returns for the past three years, MNACT is indeed one of the best performing REITs in Singapore. It posted a total profit to shareholder rate of 72.1%. In the current market, MNACT has a trading price of S$1.24 per unit, with a PB trading of 0.86, and a dividend payout ratio of 34.14. While these figures are lower than first reported by Motley Fool, MNACt remains to have a strong performance.
Based on the data given above, it is safe to say that these three have shown great potential in delivering excellent returns on investment. However, astute investors know that past performance is never an indication of a guaranteed return in the future. Still, doing due diligence is a must in any form of an investment transaction.