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A Review Of All 39 REITs In Singapore – How To Invest?

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A Quick Recap

A quick recap, in our previous article, we gave an overview of what Real Estate Investment Trusts (REITs) were together with the various different types.

Singapore Seedly REITs-01

In this article, we dive deeper into each individual REIT type available on the Singapore Exchange. For the convenience of our readers, we compile most of the information for you at your convenience below.

TL;DR – Comparing all 39 REITs in Singapore

  • Top 5 REITs for Dividend Yield: IREIT Global (8.1%), Cache Logistics Trust (8.95%), Lippo Malls Indonesia (7.91%), Soilbuild Business Space REIT (8.29%), Sabana REIT (7.94%)
  • Top 5 REITs for Return On Equity (ROE): Manulife US REIT (17.08%), Mapletree Greater China Commercial Trust (11.09%), Mapletree Industrial Trust (10.94%), Mapletree Commercial Trust (10.88%), Parkway Life REIT (9.51%)
  • Industrial REITs on average has the highest dividend yield
  • Commercial REITs has the highest debt-to-equity ratio on average

A guide to all the numbers:

We researched on these numbers and compiled all the REITs listed in Singapore in this article. Numbers can only tell an investor so much, there are definitely more factors affecting the profitability of a REIT down the road.

Part 1: Financial aspect of the REITs
  • Debt-To-Equity Ratio:
    A higher Debt-to-Equity ratio indicates a higher default risk for the company. However, it is in the nature of REITs to borrow money to fund their projects, hence, this should not be the sole number investors should be looking at.
  • Revenue Growth:
    Revenue growth gives a good picture of the rate at which companies have been able to expand their businesses.
  • Return On Equity:
    Measures the profitability of the REITs by revealing how much profit is generated with the money invested. The higher the ROE, the higher the profitability.
Part 2: Valuation aspect of the REITs
  • Dividend Yield:
    Measures how much dividend a company pays out each year in relative to its share price.
  • Price-To-Book Value:
    Measures the market price of share price over the value of company’s assets expressed on the balance sheet. In theory, if the price-to-book value is less than 1, a REIT is trading for less than it’s worth.

Further Reading: REITs in detail

Healthcare REITs

Hospitals, Medical Centers, Nursing and Retirement homes

Average Dividend Yield:  5.57%
Average ROE: 7.56%
Average Price-To-Book Value:
1.40
Average Debt/Equity Ratio: 
54.25% 

 First REITParkway Life REIT
Part 1: Financials
Debt/Equity Ratio51.81%56.68%
1-Year Revenue Growth4.31%3.68%
3-Year Revenue Growth5.99%4.07%
Return On Equity5.6%9.51%
Part 2: Valuation
P/E Ratio23.38516.642
Dividend Yield6.39%4.75%
Price-To-Book Value1.2331.561

Industrial REITs

Warehouses, Industrial Parks, and Data Centers

Average Dividend Yield:  6.86%
Average ROE: 4.06%
Average Price-To-Book Value: 
0.73 
Average Debt/Equity Ratio: 
52.04%

 AIMS AMP Capital Industrial REITAscendas REITCache Logistics Trust
Part 1: Financials
Debt/Equity Ratio47.66%53.21%40.75%
1-Year Revenue Growth(1.57)%6.16%6.93%%
3-Year Revenue Growth3%10.17%9.99%
Return On Equity1.12%7.57%(3.68)%
Part 2: Valuation
P/E Ratio86.43217.112-
Dividend Yield7.77%6.73%8.95%
Price-To-Book Value1.0031.2251.057
 EC World REITESR-REITFrasers Logistics & Industrial Trust
Part 1: Financials
Debt/Equity Ratio54.93%63.19%34.19%
1-Year Revenue Growth57.85%(2.45)%56.02%
3-Year Revenue Growth-%0.5%-%
Return On Equity7.92%0.59%9.25%
Part 2: Valuation
P/E Ratio20.557143.33712.514
Dividend Yield3.17%7.1%7.26%
Price-To-Book Value0.8310.8771.157
 Keppel DC REITMapletree Industrial TrustMapletree Logistics Trust
Part 1: Financials
Debt/Equity Ratio42.18%46.48%56.5%
1-Year Revenue Growth16.08%3.36%7.05%
3-Year Revenue Growth-%4.5%6.25%
Return On Equity6.3%10.94%7.37%
Part 2: Valuation
P/E Ratio22.30512.14215.22
Dividend Yield5.02%6.23%6.13%
Price-To-Book Value1.3231.310.971
 Sabana REITSoilbuild Business Space REITViva Industrial Trust
Part 1: Financials
Debt/Equity Ratio59.75%62.89%62.7%
1-Year Revenue Growth(7.04)%5.08%26.2%
3-Year Revenue Growth(2.42)%-%-%
Return On Equity(6.63)%0.25%7.62%
Part 2: Valuation
P/E Ratio-420.083615.578
Dividend Yield7.94%8.29%7.75
Price-To-Book Value0.08330.9981.19

Retail REITs

Most Shopping malls and freestanding retail

Average Dividend Yield:  6.11% (Excluding Dasin Retail Trust)
Average ROE: 6.81% (Excluding Dasin and BHG)
Average Price-To-Book Value: 
0.92 
Average Debt/Equity Ratio: 
48.37%

 CapitaLand Mall TrustCapitaLand Retail China TrustFortune REIT
Part 1: Financials
Debt/Equity Ratio48.71%67.37%44.27%
1-Year Revenue Growth(1.89)%3.56%3.14%
3-Year Revenue Growth1.46%7.96%9.53%
Return On Equity8.99%7.24%8.72%
Part 2: Valuation
P/E Ratio12.13513.488.055
Dividend Yield5.33%6.27%5.56%
Price-To-Book Value1.0771.0210.67
 BHG Retail REITFrasers Centrepoint TrustLippo Malls Indonesia Retail Trust
Part 1: Financials
Debt/Equity Ratio41.59%40.83%64.09%
1-Year Revenue Growth-%(4.95)%7.24%
3-Year Revenue Growth-%2.86%11.38%
Return On Equity-%7.1%3.29%
Part 2: Valuation
P/E Ratio7.47215.62840.188
Dividend Yield6.61%5.54%7.91%
Price-To-Book Value0.8971.10.969
 Dasin Retail TrustSPH REIT
Part 1: Financials
Debt/Equity Ratio44.36%35.77%
1-Year Revenue Growth-1.86%
3-Year Revenue Growth--
Return On Equity-5.57%
Part 2: Valuation
P/E Ratio64.59919.102
Dividend Yield-5.55%
Price-To-Book Value0.5521.066

Commercial REITs

Mainly office buildings and management 

Average Dividend Yield:  6.39%
Average ROE: 8.137%
Average Price-To-Book Value: 
0.63 
Average Debt/Equity Ratio: 
59.64%

 CapitaLand Commercial TrustFrasers Commercial TrustIREIT Global
Part 1: Financials
Debt/Equity Ratio45.64%60.07%78.62%
1-Year Revenue Growth26.18%2.06%4.39%
3-Year Revenue Growth10.12%10.81%-%
Return On Equity9.49%6.01%9.33%
Part 2: Valuation
P/E Ratio10.2315.05912.037
Dividend Yield5.39%7.1%8.1%
Price-To-Book Value0.930.8991.153
 Keppel REITMapleTree Greater China Commercial TrustMapletree Commercial Trust
Part 1: Financials
Debt/Equity Ratio52.12%61.46%56.17%
1-Year Revenue Growth5.29%2.57%41.43%
3-Year Revenue Growth3.65%14.37%14.94%
Return On Equity3.53%11.09%10.88%
Part 2: Valuation
P/E Ratio23.1048.38811.77
Dividend Yield5.2%6.5%5.71%
Price-To-Book Value0.7840.9081.124
 Manulife REITOUE Commercial REITStarhill Global REIT
Part 1: Financials
Debt/Equity Ratio60.05%66.61%56.54%
1-Year Revenue Growth14.8%19.18%(1.51)%
3-Year Revenue Growth12.41%-%-%
Return On Equity17.08%3.78%5.49%
Part 2: Valuation
P/E Ratio6.61321.27514.615
Dividend Yield6.97%6.92%6.65%
Price-To-Book Value1.0020.8230.803
 Suntec REIT
Part 1: Financials
Debt/Equity Ratio59.1%
1-Year Revenue Growth0.62%
3-Year Revenue Growth(0.49)%
Return On Equity4.69%
Part 2: Valuation
P/E Ratio19.93
Dividend Yield5.35%
Price-To-Book Value0.886

Residential REITs

Family rental apartment buildings and houses

Average Dividend Yield:  
Average ROE: (9.96)%
Average Price-To-Book Value:
1.061 
Average Debt/Equity Ratio:
49.58%

 Saizen REIT
Part 1: Financials
Debt/Equity Ratio49.58%
1-Year Revenue Growth(77)%
3-Year Revenue Growth(40.11)%
Return On Equity(9.96)%
Part 2: Valuation
P/E Ratio-
Dividend Yield-
Price-To-Book Value1.061

Hospitality REITs

Hospitality side of the business, owning properties (serviced apartments and hotels)

Average Dividend Yield:  6.51%
Average ROE: 3.34% (Excluding Frasers Hospitality Trust)
Average Price-To-Book Value:
0.91 
Average Debt/Equity Ratio:
49.76%

 Ascott Residence TrustCDL Hospitality TrustsOUE Hospitality Trust
Part 1: Financials
Debt/Equity Ratio49.24%33.87%48.85%
1-Year Revenue Growth6.18%5.42%4.94%
3-Year Revenue Growth12.78%6.21%-
Return On Equity5.45%2.65%1.67%
Part 2: Valuation
P/E Ratio15.99738.67759.188
Dividend Yield6.65%6.07%6.67%
Price-To-Book Value0.8261.0291.006
 Ascendas Hospitality TrustFrasers Hospitality TrustFar East Hospitality Trust
Part 1: Financials
Debt/Equity Ratio55.37%65.11%46.12%
1-Year Revenue Growth5.07%-(5.17)%
3-Year Revenue Growth0.75%-(5.39)%
Return On Equity5.16%-1.85%
Part 2: Valuation
P/E Ratio18.55718.62638.625
Dividend Yield6.84%6.53%6.32%
Price-To-Book Value0.9350.9280.728

Deeper Reading: Other factors to consider

The above numbers are just some of the basic numbers one can derive from SGX.

There are definitely a lot more to consider, should one decides to invest a portion of his money on REITs.

As mentioned in the previous article, numbers such as

  • Distribution per Unit (DPU)
  • Occupancy Ratio
  • Gearing Ratio
  • Weighted Average Lease Expiry
  • Funds From Operation (FFO)
  • Interest Coverage

These are some of the more advanced numbers to make better investing decision on REITs. On top of that, it is always good that investors have a healthy habit of reading up on the projects that the companies are working on with their money.

 

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