Different investors look at different things when it comes to investing in REITs.
Some prefer to invest in REITs whose portfolio comprises of properties of a particular property type, such as retail (one example being Frasers Centrepoint Trust, whose portfolio comprises 9 retail malls all located in Singapore), or data centre (one example being Keppel DC REIT, where its portfolio comprises 23 data centres in 9 countries.)
On the other hand, some may prefer to invest in REITs that are diversified – in that their portfolios have varying property types. One of the key advantages of REITs with a diversified portfolio is risk reduction, in that the overall exposure to risk coming from a single property type is much reduced.
Speaking of which, here are 7 Singapore-listed REITs with a diversified portfolio you can have a look at:
1. AIMS APAC REIT (SGX:O5RU)
Listed since 2007, AIMS APAC REIT invests in properties used for a variety of purposes, including but not limited to warehousing and distribution activities, business park activities, as well as manufacturing activities. As at the end of the third quarter of 31 December 2022 (the REIT has a financial year ending every 31 March), the REIT’s portfolio comprises of 29 properties – with 26 located in Singapore, and 3 located in Australia.
The following is a breakdown of income contribution by each property type:
- Logistics & Warehouse: 42.9%
- Business Park: 28.9%
- General Industrial: 11.9%
- Light Industrial: 9.4%
- Hi-Tech: 6.9%
Occupancy rates (as at 31 December 2022) for all the different types of properties in its portfolio are also very strong (with all of them over 90.0%), as follows:
- Logistics & Warehouse: 97.9%
- Business Park: 94.5%
- General Industrial: 99.4%
- Light Industrial: 98.6%
- Hi-Tech: 99.8%
2. CapitaLand China Trust (SGX:AU8U)
CapitaLand China Trust is Singapore’s largest China-focused REIT with total assets under management of approximately S$5.2 billion as at the end of the latest financial year on 31 December 2022.
Currently, its portfolio comprises of:
- 11 shopping malls, strategically located in densely populated areas with good connectivity to transportation amenities, which provide stable recurring shopper footfall;
- 5 business parks, all of them situated in high-growth economic areas, with high-quality and reputable domestic and multinational corporations operating in new sectors such as biomedical, electronics, engineering, e-commerce, information and communications technology, and financial services, and are easily accessible via various modes of transport;
- 4 logistics parks, located near transportation nodes such as seaports, airports, and railways to serve the growing domestic logistics needs of China’s Eastern, Central, and Southwest regions.
Portfolio occupancy rates of all 3 property types are also very strong, where all of them are above 90.0% – with retail at 95.4%, business park at 91.4%, and logistics park at 96.4% as at 31 December 2022.
3. CapitaLand India Trust (SGX:CY6U)
As the name suggests, the REIT invests in properties in India, the world’s fifth-largest economy (however, the country is poised to overtake Japan and Germany to become the world’s third-largest economy, and you can read a report by CNBC about it here.)
As at the end of the financial year on 31 December 2022, the REIT’s portfolio (valued at S$2.5 billion) comprises 8 IT parks, 3 data centre developments, 1 logistics park, and 1 industrial facility – all of them located in key Indian cities. The REIT is focused on capitalising on the fast-growing IT industry and logistics/industrial asset classes in India.
While the REIT did not provide a breakdown of occupancy rates by property types, but its committed occupancy as at 31 December 2022 was at 92%. With the exception of CyberVale in Chennai (whose occupancy rate was 78%), and Building Q1 in Mumbai (with an occupancy rate of 58%), the remaining properties had occupancy rates of over 90.0%.
4. CapitaLand Integrated Commercial Trust (SGX:C38U)
CapitaLand Integrated Commercial Trust, or CICT for short, is the first and largest REIT listed on the Singapore Exchange in July 2002 (where it debuted as CapitaLand Mall Trust), and was renamed as CICT in November 2020 following the merger with CapitaLand Commercial Trust. CICT is also one of the constituents in Singapore’s benchmark Straits Times Index (STI).
As at the end of the financial year on 31 December 2022, the REIT’s portfolio comprises 21 properties in Singapore, 2 properties in Frankfurt, Germany, and 3 properties in Sydney, Australia, with a total property value of S$24.2 billion used for retail and/or office purposes.
Portfolio occupancy as at 31 December 2022 was also very strong – with its retail, office, and integrated development properties having an occupancy rate of 98.3%, 94.4%, and 97.1% respectively.
Income contributions coming in from the properties were also very well-diversified, as follows:
- Singapore (Suburban Retail) – 29.8%
- Singapore (CBD Office) – 26.7%
- Singapore (Downtown Retail) – 25.0%
- Singapore (Hotels & Convention Centre) – 6.1% (in Raffles City)
- Singapore (Office) – 6.0% (comprises of office revenue contribution from Funan, Raffles City Singapore, and The Atrium@Orchard)
- Germany (Office) – 3.8%
- Australia (Office) – 2.6%
5. ESR-LOGOS REIT (SGX:J91U)
Listed on the Singapore Exchange since July 2006, ESR-LOGOS REIT has a diversified portfolio of logistics properties, high-specifications industrial properties, business parks, and general industrial properties with a total assets under management of S$5.7 billion.
As at the end of the REIT’s financial year on 31 December 2022, its portfolio comprises 82 properties (excluding 48 Pandan Road held through a joint venture) located across the developed markets of Singapore (61 assets), Australia (20 assets), and Japan (1 asset.)
Portfolio occupancies across the 3 geographical locations were all very strong, at above 90.0% – with Singapore at 90.2% (above 4Q2022 JTC average of 89.4%), Australia at 99.5% (above 4Q2022 National Average), and Japan at 100.0%.
Finally, in terms of rental reversions (meaning rental rates for new and/or renewed leases), all the 4 property types have recorded positive rental reversions in FY2022 – with high-specs industrial at +12.3%, logistics at +15.7%, general industrial at +9.7%, and business park at +4.7%.
6. Mapletree Industrial Trust (SGX:ME8U)
Mapletree Industrial Trust invests a diversified portfolio of income-producing real estate used primarily for industrial purposes in Singapore (through its hi-tech buildings, business park buildings, flatted factories, stack-up/ramp-up buildings, and light industrial buildings), and also for data centres (for its properties in the United States.)
As at the end of the third quarter of financial year 2022/23 ended 31 December 2022 (the REIT has a financial year ending every 31 December), the REIT’s portfolio comprises 85 properties in Singapore, and 56 properties in North America (including 13 data centres held through the joint venture with Mapletree Investments Pte Ltd), with a total assets under management of S$8.8 billion.
Portfolio occupancy rates are very resilient, where apart from its business park buildings (with an occupancy rates at 86.7%), the rest are at above 90.0%.
7. Mapletree Pan Asia Commercial Trust (SGX:N2IU)
Listed initially on the Singapore Exchange as Mapletree Commercial Trust on 27 April 2011, but later renamed as Mapletree Pan Asia Commercial Trust, or MPACT for short, following the REIT’s merger with another Mapletree REIT in Mapletree North Asia Commercial Trust on 03 August 2022, the REIT’s portfolio comprises of properties used for retail and/or office purposes in key gateway markers of Asia. The REIT is also one of the constituent of STI.
Currently, its portfolio comprises of 18 properties – 5 in Singapore (1 retail and 4 office/business park properties), 1 in Hong Kong (retail property with an office component), 2 in China (2 office/business park properties), 9 in Japan (9 office/business park properties), and 1 in South Korea (1 office property).
In terms of the REIT’s portfolio occupancy as at the end of the 3rd quarter on 31 December 2022 (it has a financial year end every 31 March), all of its properties have occupancy rates of more than 90.0%, which is very resilient.
Finally, in terms of rental reversion, all of the properties recorded a positive rental reversion, except for Festival Walk (the REIT’s property in Hong Kong), and also for its 2 China properties – due to headwinds from prolonged Covid-19 restrictions in both countries; however, moving forward, as both countries have opened up, I foresee the properties rental reversions to once again record positive percentages in the quarters to come.
This post is just a starting point for your research, but not a buy call for any of the REITs mentioned above.
The next thing you can do is to study the annual reports for these REITs to learn about its past years’ financial performances, debt profile, as well as its distribution payouts to unitholders.
Another avenue for you to learn more about these REITs is at the upcoming REITs Symposium 2023 (a one-day event held on Saturday, 20 May 2023, from 9am – 6pm at Suntec City Convention Centre Summit 1 & 2), where all of the REITs I’ve shared about above will have booths set up, and representatives present for you to learn more about, and also to respond to any questions you may have about them.
On top of that, there are also several panelist discussions where you can hear from industry experts about the economic environment for the 2nd half of 2023, whether REITs still make a viable investment in the current high interest rate environment, and more – something I’m sure you’ll benefit from (whether you are someone who is just starting out in REIT investing or someone who has years of experience in it.) I’ll also be involved in a panel discussion (held from 5.00pm – 5.45pm) where I will be sharing about my REITs investment journey.
Finally, there are also chances for you to walk away with attractive prizes by participating in the ‘Booth Bingo’, and also the grand lucky draw – where winners will be picked at the end of the day, with the first prize being a uDivine Mini Massage Sofa worth $888.
You can find out more about the event here. For those who have already signed up, I look forward to seeing you there!
Disclaimer: At the time of writing, I am a unitholder of CapitaLand Integrated Commercial Trust, Mapletree Industrial Trust, and Mapletree Pan Asia Commercial Trust.
Launch Event for My First Book: building your REIT-irement portfolio
After months of hard work, my first book, 'Building Your REIT-irement portfolio' is finally ready! In this easy-to-follow 178-page guide, you'll learn everything you need to know about building a REIT portfolio that can provide for you in your retirement years. You can check out a preview of the book here.
I'm extremely thankful to the team at InvestingNote and ShareInvestor for their help to organise a book launch event for me on Tuesday, 26th September 2023, from 6:00pm to 8:00pm at their office in New Tech Park.
For more details and to RSVP (seats are extremely limited), click on the link below: