Aside from the Central Provident Fund (CPF) scheme, the government has another scheme called the Supplementary Retirement Scheme (SRS) to help boost your retirement funds.
The SRS is voluntary with maximum yearly contributions capped at S$15,300 a year for Singaporeans and permanent residents.
Contributions are eligible for tax relief, but the funds within the SRS account earn a paltry interest of just 0.05%.
With Singapore’s core inflation hitting a 14-year high of 4.8% in July, you must take action to make your SRS funds worth the while.
The good news is that the SRS funds are allowed to be invested in a variety of Singapore-listed shares that can help increase your overall returns.
Here are five investments you can consider making with your SRS monies.
DBS Group (SGX: D05)
DBS is Singapore’s largest bank and the blue-chip lender has proven to be resilient during tough economic conditions.
The group logged its highest-ever net profit of S$6.8 billion last year as it witnessed surging fee income and steady loan growth.
That momentum has carried over into the first half of fiscal 2022 (1H2022) with the bank reporting a net profit of S$3.6 billion despite economic headwinds.
The quarterly dividend increased to S$0.36, taking annualised dividend for FY2022 to S$1.44.
DBS’ shares offer a forward dividend yield of 4.3% at the last traded price of S$33.53.
Looking ahead, the group will enjoy tailwinds as higher interest rates translate to better net interest margins, thereby lifting its net interest income.
The group has also launched a digital exchange in late 2020 that will see this service offered to 300,000 of its wealthy clients across Asia through its DBS mobile banking app.
Mapletree Industrial Trust (SGX: ME8U)
Mapletree Industrial Trust, or MIT, is an industrial REIT with assets under management of S$8.8 billion as of 30 June 2022.
The REIT’s portfolio comprises 85 properties in Singapore and 56 properties in North America.
For the first quarter of fiscal 2023 (1Q2023) ending 30 June 2022, MIT reported a 31% year on year jump in gross revenue to S$167.8 million.
Net property income (NPI) rose 24% year on year to S$129.9 million and distribution per unit (DPU) inched up 4.2% year on year to S$0.0349.
Trailing 12-month DPU stands at S$0.1394, giving MIT’s units a trailing distribution yield of 5.5%.
The REIT is currently working on the redevelopment of the Kolam Ayer 2 cluster of two flatted factories and an amenities centre.
Post-completion, the gross floor area is projected to rise from 506,720 square feet to 865,600 square feet.
CapitaLand Integrated Commercial Trust (SGX: C38U)
CapitaLand Integrated Commercial Trust, or CICT, is a retail and commercial REIT that owns 21 properties in Singapore, two in Germany, and three in Australia with an AUM of S$24.2 billion as of 31 December 2021.
The REIT’s 1H2022 performance saw revenue rise 6.5% year on year to S$687.6 million while NPI increased 6.2% year on year to S$501.6 million.
DPU crept up slightly from S$0.0518 in 1H2021 to S$0.0522 in 1H2022.
CICT saw healthy portfolio occupancy of 93.8% as of 30 June 2022 with shopper traffic and tenant sales improving year on year for its retail portfolio.
The REIT plans to spend S$62 million on an asset enhancement initiative to transform CQ @ Clarke Quay into a day-and-night destination.
Raffles Medical Group (SGX: BSL)
Raffles Medical Group, or RMG, is an integrated healthcare services provider with a network of three hospitals and more than 100 multi-disciplinary clinics in 14 cities in five countries in Asia.
For 1H2022, the healthcare group saw revenue rising 11.2% year on year to S$382.3 million.
Net profit surged 51.3% year on year to S$59.7 million.
The group is seeing increased patient numbers with the resumption of international travel and continues to help the Singapore government with COVID-19 vaccination and PCR tests.
RMG has received the approval to set up an in-vitro fertilisation cum assisted reproductive therapy centre in Hainan that aims to serve around 40 million women in China with fertility services.
Parkway Life REIT (SGX: C2PU)
Parkway Life REIT is a healthcare REIT that owns a diversified portfolio of 56 properties in Singapore, Malaysia and Japan with an AUM of S$2.29 billion as of 30 June 2022.
The REIT has managed to grow its core DPU every single year since its listing in 2007.
For 1H2022, Parkway Life REIT saw its DPU inch up 1.5% year on year to S$0.0706 as gross revenue and NPI increased by 1% and 1.1% year on year, respectively.
There could be more growth to come from the healthcare REIT.
In this month alone, Parkway Life REIT acquired a total of five nursing homes in two separate transactions.
The first purchase was for three nursing homes at an average NPI yield of 6.5% while the remaining two nursing homes had an NPI yield of 5.2%.
Both acquisitions are expected to increase DPU for the REIT.
Not sure which REIT to put your money in? Use our 7-step REIT checklist to find one that fits into your retirement plan. Checklist is inside our latest FREE report “Singapore REITs Retirement Plan”. Click here to download it now.
Disclaimer: Royston Yang owns shares of DBS Group, Mapletree Industrial Trust and Raffles Medical Group.
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