4 Singapore REITs That Raised Their DPU in 2023

It has been a tough year for REITs as they must grapple with surging inflation and sharply higher interest rates.

Investors are bearish on the asset class, causing the unit prices of many REITs to tumble to their 52-week lows.

Despite these challenges, several REITs managed to report a higher distribution per unit (DPU).

Here are four Singapore REITs that managed to raise their DPU this year.

Mapletree Logistics Trust (SGX: M44U)

Mapletree Logistics Trust, or MLT, is an industrial REIT with a portfolio of 189 properties across eight countries with assets under management (AUM) of S$13.3 billion as of 30 September 2023.

Revenue for the first half of fiscal 2024 (1H FY2024) ending 30 September 2023 dipped by 0.7% year on year to S$368.9 million.

Net property income (NPI) also fell by 1% year on year to S$320.1 million.

Despite this, DPU inched up 0.5% year on year to S$0.04539.

There could be more to come from MLT as the manager accelerates the REIT’s portfolio rejuvenation.

A total of five divestments were completed or are pending completion in the second quarter of FY2024 (2Q FY2024), with all properties sold above their valuation.

MLT also boasts a high portfolio occupancy of close to 97% with a positive average rental reversion of 0.2% for the quarter.

For 1H FY2024, the REIT acquired a total of eight properties in Japan, South Korea, and Australia for S$904.4 million.

MLT’s manager expects to conduct another S$200 million to S$300 million of acquisitions in FY2024 in countries such as Malaysia, Vietnam, and India.

Parkway Life REIT (SGX: C2PU)

Parkway Life REIT, or PLife REIT, is a healthcare REIT with 61 properties worth S$2.2 billion.

The REIT enjoys a defensive long-term lease structure for its Singapore hospitals with downside protection and is well-positioned to grow within Asia’s healthcare sector.

For the first nine months of 2023 (9M 2023), PLife REIT’s gross revenue jumped 24.6% year on year to S$110.9 million.

NPI climbed 26.2% year on year to S$104.5 million while DPU edged up 2.8% year on year to S$0.1099.

The healthcare REIT could continue to see higher year-on-year DPU as it enjoys additional revenue from the Japanese nursing homes it acquired in 2023.

Gearing also remained low at 36% with a low cost of debt of just 1.32%.

CapitaLand Ascott Trust (SGX: HMN)

CapitaLand Ascott Trust, or CLAS, is a hospitality trust with a portfolio of 103 properties located in 44 cities within 15 countries.

Its AUM stood at S$8.1 billion as of 30 September 2023.

For its 1H 2023, CLAS saw revenue jump 30% year on year to S$346.9 million due to the influx of tourists as borders reopened.

Distribution per stapled security climbed 19% year on year to S$0.0278.

The hospitality trust has been busy in the past six months.

It completed the divestment of four properties in France at a premium of 63% above book value and agreed to divest two properties in Sydney.

CLAS also carried out the acquisition of three properties in London, Dublin, and Jakarta for S$530.8 million.

Elsewhere, the trust has commenced an asset enhancement initiative (AEI) at The Robertson House that is slated for completion in the first quarter of next year.

CLAS has also undertaken development projects to boost its asset base, with a recent example being Standard at Columbia, a 678-bed student accommodation asset in the US.

CapitaLand Integrated Commercial Trust (SGX: C38U)

CapitaLand Integrated Commercial Trust, or CICT, is a retail and commercial REIT with 21 properties in Singapore, three in Sydney, and two in Frankfurt, Germany.

For 1H 2023, CICT saw its DPU rise from S$0.0522 in the prior year to S$0.053 on the back of a 12.7% year-on-year increase in gross revenue.

The REIT reported an encouraging business update for the third quarter of 2023 (3Q 2023) that could see a further rise in DPU.

9M 2023 saw gross revenue rise 9.8% to S$1.2 billion with NPI improving by 6.8% year on year to S$827.3 million.

CICT’s AEI at CQ @ Clarke Quay is targeting completion by the end of this year with the property achieving more than 85% committed occupancy.

Rental reversion was positive for both the REIT’s retail and commercial divisions, coming in at 7.8% and 8.8%, respectively.

There was also good news on the retail front with tenant sales per square foot increasing by 4% year on year for 9M 2023.

In the same period, shopper footfall also rose 12.9% year on year.

If you’re a REIT investor looking to safeguard and grow your dividend income in 2024, our upcoming webinar will show you how. We’re exploring the potential rebound of the REIT sector and what it means for maximising dividend yields. Grab a FREE spot in our webinar here.

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Disclosure: Royston Yang does not own shares in any of the companies mentioned.

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