5 Singapore REITs with Quarterly Dividend Payouts to Consider for Your Portfolio

We are in the middle of the final earnings season for 2024, and it’s time for investors to reassess the performance of companies in their portfolios once again.

By taking time to review these results, investors can gain a clearer understanding of each company’s financial health, and assess the sustainability of future dividend payouts, a key factor for income-focused investors.

For those who are seeking a steady income stream, real estate investment trusts (REITs) that pay quarterly dividends are especially attractive, as they offer regular payouts throughout the year.

With that in mind, here are five Singapore REITs that pay dividends quarterly, offering strong options for investors seeking stable income sources for their portfolios.

1. First REIT (SGX: AW9U)

First REIT invests in hospitals, nursing homes, and healthcare-related assets across Asia.

As of 30 September 2024, the REIT’s portfolio comprised three properties in Singapore, 15 properties in Indonesia, and 14 properties in Japan, with a total assets under management of S$1.14 billion.

For the first nine months of 2024 (9M 2024), rental and other income, as well as net property and other income fell by 5.3% and 6.0% to S$77 million and S$74.4 million respectively, largely driven by a weaker Japanese Yen and Indonesian Rupiah against the Singapore Dollar.

However, this negative impact was partially mitigated by higher rental income in local currency terms from its properties in Indonesia and Singapore.

First REIT’s distributable amount for 9M 2024 also contracted by 3.4% year on year to S$37 million.

Despite these headwinds, the healthcare REIT’s portfolio maintained full occupancy, with a long weighted average lease expiry (WALE) of 10.8 years, supporting income stability.

On the financial front, First REIT reported a gearing ratio of 39.3% as of 30 September 2024, with an all-in cost of debt at 5.0% per annum, and 86% of its borrowings hedged at fixed rates.

Distribution per unit (DPU) for 3Q 2024 was S$0.0058, a slight quarter-on-quarter dip of 3.3%.

2. Mapletree Industrial Trust (SGX: ME8U)

Mapletree Industrial Trust (MIT) invests in a diversified portfolio of industrial and data centre properties across Singapore, North America, and Japan.

As of 30 September 2024, MIT’s portfolio comprises 140 properties valued at S$8.9 billion, with 56 located in North America, 83 in Singapore, and one in Japan.

In the second quarter of its fiscal year ending 31 March 2025 (2Q FY2025), MIT posted a 4.2% and 4.6% year-on-year increase in gross revenue and NPI to S$181.4 million and S$134.5 million respectively.

This growth was bolstered by contributions from a newly acquired data centre in Japan, and robust leasing activity across its portfolio.

MIT’s distribution to unitholders also rose by 1.9% year on year to S$95.8 million, supported by higher NPI, but partially offset by an increase in borrowing costs from the Osaka Data Centre.

Average portfolio occupancy improved from 91.9% in the previous quarter to 92.9%, driven primarily by the full-quarter effect of a new lease commencement in North America.

MIT’s financial position remains stable with an aggregate leverage of 39.1%, and an average borrowing cost of 3.2% as of 30 September 2024.

Approximately 80.4% of its borrowings are hedged at fixed rates, reflecting a prudent risk management approach.

For 2Q FY2025, MIT’s DPU increased by 1.5% year on year to S$0.0337, supported by the higher NPI and the phased distribution of S$13.4 million in divestment gains from 115A & 115B Commonwealth Drive across the four quarters of FY2025.

3. Mapletree Logistics Trust (SGX: M44U)

Mapletree Logistics Trust (MLT) invests in high-quality logistics properties across the Asia-Pacific region.

As of 30 September 2024, the REIT’s portfolio comprises 186 properties in nine markets, collectively valued at S$13.4 billion.

For the second quarter of the fiscal year ending 31 March 2025 (2Q FY2025), MLT reported a year-on-year dip in gross revenue and NPI by 1.8% and 2.1%, respectively, to S$183.3 million and S$158.6 million.

This decline was largely driven by lower contributions from China, the absence of income from recently divested properties, and currency depreciation in regional markets against the Singapore Dollar.

On a constant currency basis, however, gross revenue remained stable, and NPI recorded a marginal 0.3% decline compared to the same period last year.

Unfortunately, the amount distributable to unitholders fell by 9.1% year on year to S$102.3 million.

Portfolio occupancy improved to 96.0%, up from 95.7% in the prior quarter, bolstered by backfilled spaces in Hong Kong and Vietnam.

Rental reversions for new leases, excluding China, came in at a positive 3.6%.

MLT maintained a decent capital structure, with an aggregate leverage of 40.2% as of 3Q FY2025.

Its borrowing cost remained stable at 2.7% per annum, with 84% of its borrowings hedged to fixed rates.

However, its DPU for 2Q FY2025 declined by 10.6% year on year to S$0.02027.

4. Mapletree Pan Asia Commercial Trust (SGX: N2IU)

Mapletree Pan Asia Commercial Trust (MPACT) invests in retail and office assets across Asia’s key gateway cities.

As of 30 September 2024, MPACT’s portfolio comprised 17 properties, including four assets in Singapore, one in Hong Kong, two in China, nine in Japan, and one in South Korea, with a total valuation of S$15.5 billion.

In the second quarter of the fiscal year ending 31 March 2025 (2Q FY2025), MPACT recorded a year-on-year decline in gross revenue and NPI of 6.1% and 8.5% respectively, to S$225.6 million and S$167.7 million.

The decreases were primarily caused by the divestment of Mapletree Anson, alongside lower contributions from its overseas assets.

Consequently, distributable income to unitholders tumbled 11.9% year on year to S$104 million.

Despite these declines, MPACT maintained a robust committed portfolio occupancy of 90.3%, with a WALE of 2.3 years as of 30 September 2024.

On the capital management front, MPACT’s aggregate leverage improved to 38.4% at the end of 2Q FY2025.

The divestment proceeds from Mapletree Anson were used to pare down floating-rate debt, MPACT’s weighted average borrowing cost stands at 3.56% per annum, with 85% of its borrowings secured at fixed interest rates, providing stability amid the current high rate environment.

MPACT’s DPU for 2Q FY2025 declined 11.6% year on year to S$0.0198.

5. Suntec REIT (SGX: T82U)

Similar to MPACT, Suntec REIT holds a diverse portfolio of retail and office assets. However, its properties span Singapore, Australia, and the United Kingdom.

For the third quarter of 2024 (3Q 2024), Suntec REIT reported a year-on-year decline in both gross revenue and NPI by 4.6% and 5.7% to S$117.7 million and S$79.8 million, respectively.

This weakness was largely due to reduced contributions from Suntec Convention, 55 Currie Street in Adelaide, and The Minster Building in London.

Similarly, the REIT’s distributable income fell by 11.2% year on year to S$46.2 million, impacted by the absence of capital distribution as well as increased vacancies in 55 Currie Street and The Minster Building.

As of 30 September 2024, Suntec REIT’s occupancy rates for its Singapore office and retail properties stand at 99.1% and 98.3%, while its Australia and UK properties have committed occupancies of 90.6% and 95.3%, respectively.

In terms of capital management, Suntec REIT closed the quarter with an aggregate leverage of 42.3% and an all-in financing cost of 4.06% per annum.

The REIT has hedged approximately 61% of its borrowings to fixed rates, providing some stability against interest rate volatility.

With no capital distribution for 3Q 2024, Suntec REIT’s distribution per unit (DPU) fell by 11.2% year on year to S$0.0158.

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Disclaimer: Lim Jun Yuan owns shares of Mapletree Industrial Trust, Mapletree Logistics Trust, Mapletree Pan Asia Commercial Trust, and Suntec REIT.

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