Two weeks ago, we highlighted five REITs that managed to raise their distribution per unit (DPU) despite tough conditions.
With a brighter outlook, many REITs have also reported better numbers.
There are more signs of a recovery underway that is benefiting a wide swath of businesses, though there are still some sectors such as aviation and tourism that remain badly affected.
As more REITs have reported their earnings since then, we single out another five that have managed to increase their DPU, making it 10 REITs in total.
Mapletree Commercial Trust (SGX: N2IU)
Mapletree Commercial Trust, or MCT, owns a portfolio of retail and commercial properties in Singapore.
The REIT’s sole retail property is VivoCity which attracts a healthy mix of both locals and tourists, while its commercial portfolio consists of Mapletree Business City I and II, mTower, Mapletree Anson and Bank of America Merril Lynch Harbourfront.
The REIT reported a resilient set of earnings for its fiscal year 2021 ended 31 March 2021 (FY21).
Gross revenue dipped by 1.9% year on year to S$476.3 million before government grants.
Along with it, net property income (NPI) slipped 0.2% year on year to S$377 million.
DPU, however, jumped 18.6% year on year from S$0.08 in FY20 to S$0.0949 in FY21.
The distributable amount includes a sum of S$28 million that was carried forward from the fourth quarter of the fiscal year 2020.
Committed occupancy for all its properties remains high at 97.1%.
For FY21, tenant sales were down 23.3% year on year, but the REIT manager has taken proactive steps to refresh VivoCity’s tenant mix by introducing fresh new dining concepts.
Mapletree Industrial Trust (SGX: ME8U)
Mapletree Industrial Trust, or MIT, invests in a diversified portfolio of industrial properties in Singapore and data centres in the US.
The REIT’s portfolio comprised 87 properties in Singapore and 28 in North America worth S$6.8 billion as of 31 March 2021.
For FY21, the MIT reported a 10.2% year on year increase in gross revenue mainly due to the addition of revenue from 14 data centres acquired in the US.
NPI increased by 10.4% year on year while DPU inched up 2.5% year on year to S$0.1255.
MIT’s gearing level stood at 40.3% at fiscal year-end with a low cost of debt of 2.8%. The interest coverage ratio remained healthy at 6.4 times.
Frasers Logistics & Industrial Trust (SGX: BUOU)
Frasers Logistics & Industrial Trust, or FLCT, owns a portfolio of both commercial and industrial properties spanning five countries: Singapore, Australia, Germany, the UK and the Netherlands.
Its portfolio comprises 97 properties worth around S$6.3 billion as of 31 March 2021.
For its fiscal 2021 first-half (1H2021), revenue surged by 95.1% year on year to S$231.7 million.
This significant jump was due to the merger with Frasers Commercial Trust, acquisitions, and the strengthening of the Australian dollar and Euro.
Adjusted NPI rose 79.3% year on year to S$173.9 million.
DPU increased by 9.5% year on year to S$0.038, while net asset value per unit inched up 3.6% in the last six months to S$1.14.
ARA Logos Logistics Trust (SGX: K2LU)
ARA Logos Logistics Trust, or ARALT, invests in a portfolio of industrial real estate used for logistics purposes.
As of 31 March 2021 (1Q2021), the REIT’s portfolio consists of 27 logistics warehouse properties located in Singapore and Australia. The properties have a gross floor area of around nine million square feet and are valued at around S$1.3 billion.
For 1Q2021, the REIT reported an 8.2% year on year rise in gross revenue.
NPI improved by 8.7% year on year to S$23.9 million while adjusted DPU rose 6.6% year on year to S$0.01307.
ARALT is continuing with its proactive asset management strategy to optimise its portfolio.
In a space of a week, the REIT announced the divestment of two logistics properties.
The first involved the sale of ALOG Changi DistriCentre 2 for S$16.7 million, around 7.7% higher than its S$15.5 million valuation.
The second was for Kidman Park in Australia for a sale consideration of A$41.5 million, approximately 3.8% higher than the A$40 million valuation for the property.
AIMS APAC REIT (SGX: O5RU)
AIMS APAC REIT, or AAREIT, invests in a diversified portfolio of industrial properties that includes logistics and business park assets.
Its portfolio consists of 26 properties in Singapore and two properties in Australia.
For the fourth quarter of the fiscal year 2021 (4Q2021), gross revenue rose 16.1% year on year to S$32.8 million.
NPI jumped by 17% year on year to S$24 million.
DPU surged by 45% year on year to S$0.029.
AAREIT’s leverage, at 33.9%, allows ample debt headroom for the REIT to pursue acquisitions and asset enhancement initiatives.
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Disclaimer: Royston Yang owns shares of Frasers Logistics and Commercial Trust.
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