5 Dependable Singapore REITs Yielding More Than Your CPF Account


Singapore’s Central Provident Fund (CPF) scheme helps you to save diligently for retirement.

While the CPF scheme offers a near-guaranteed interest rate of 2.5% on your Ordinary Account (OA), it may not be sufficient to beat inflation.

Singapore’s core inflation is running at 3.2% for November 2023 and the government expects the inflation rate to hover between 2.5% to 3.5% for this year.

Investing is one method you can tap on to earn a yield superior to that offered by the CPF OA.

The REIT sector offers steady and dependable distributions that act as a useful source of passive income.

Here are five REITs that yield more than what your CPF OA offers.

Mapletree Industrial Trust (SGX: ME8U)

Mapletree Industrial Trust, or MIT, is an industrial REIT with a portfolio of 142 properties across six property segments.

Data centres make up 56% of its total assets under management (AUM) of S$9.2 billion as of 30 September 2023.

The industrial REIT reported a mixed performance for the first half of fiscal 2024 (1H FY2024).

Gross revenue edged up 0.4% year on year to S$344.7 million but distribution per unit (DPU) dipped by 2% year on year to S$0.0671.

The REIT’s trailing 12-month (TTM) DPU stood at S$0.1343, giving its units a trailing distribution yield of 5.4%.

There could be better days ahead for MIT as it just completed the acquisition of a data centre in Osaka, Japan, for around S$507.9 million.

The portfolio also reported a positive rental reversion of 8.8% for renewal leases.

Frasers Centrepoint Trust (SGX: J69U)

Frasers Centrepoint Trust, or FCT, is a retail REIT with a portfolio of nine suburban retail malls and one office building.

The REIT’s AUM stood at S$6.9 billion as of 30 September 2023.

The retail REIT reported a resilient set of earnings for its fiscal 2023 (FY2023) ending 30 September.

Gross revenue rose 3.6% year on year to S$369.7 million with net property income (NPI) edging up 2.7% year on year to S$265.6 million.

DPU, however, slipped by 0.6% year on year to S$0.1215 due to higher utilities and staff costs.

Units of FCT provide a trailing distribution yield of 5.4%.

FCT maintained a high committed occupancy of 99.7% with a committed positive rental reversion rate of 4.7%, demonstrating the strong leasing demand for its properties.

For FY2023, shopper traffic also climbed 24.7% year on year while tenant sales improved by 7.3% year on year.

The REIT manager kept busy in FY2023 with two acquisitions – that of a 25.5% stake in NEX Mall and an additional 10% stake in Waterway Point.

These two transactions will help to boost the REIT’s DPU in the future.

CapitaLand Integrated Commercial Trust (SGX: C38U)

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

The REIT’s portfolio was valued at S$24.2 billion as of 31 December 2022.

CICT’s TTM DPU came in at S$0.1066, giving the REIT a trailing distribution yield of 5.3%.

For the first nine months of 2023 (9M 2023), CICT saw gross revenue rise 9.8% year on year to S$1.2 billion while NPI improved by 6.8% year on year to S$827.3 million.

Committed occupancy stood high at 97.3% for the portfolio and the REIT reported positive rental reversions of 7.8% and 8.8% for its retail and office divisions, respectively.

CICT’s asset enhancement initiative (AEI) at CQ @ Clarke Quay is also due for completion at the end of 2023 and the property achieved a committed occupancy of 85%.

Keppel DC REIT (SGX: AJBU)

Keppel DC REIT is a data centre REIT with a portfolio of 23 data centres across nine countries.

Its AUM stood at S$3.7 billion as of 30 September 2023.

For 9M 2023, Keppel DC REIT reported a mixed set of results.

Gross revenue rose 2.6% year on year to S$211.1 million as acquisitions and positive rental reversions boosted the REIT’s top line.

However, DPU slid 1.2% year on year to S$0.07543 because of higher finance costs and lower contributions from Singapore’s colocation assets.

The data centre REIT’s TTM DPU stood at S$0.10123, giving its units a trailing distribution yield of 5.5%.

Keppel DC REIT had an aggregate leverage of 37.2% with the bulk of its debt expiring in 2026 and beyond, helping the REIT to mitigate higher finance costs moving ahead.

Sector-wise, the data centre market should see strong demand growth as cloud service providers opt for a colocation strategy to complement their self-build strategy.

The rise in artificial intelligence (AI) demand will also require more data centres to be built and utilised over the next medium term.

Parkway Life REIT (SGX: C2PU)

Parkway Life REIT, or PLife REIT, is a healthcare REIT with a portfolio of 61 properties with an AUM of around S$2.2 billion.

Around 63% of its gross revenue is derived from Singapore with the remainder coming from Japan.

PLife REIT announced a sparkling set of earnings for 9M 2023.

Gross revenue jumped 24.6% year on year to S$110.9 million with NPI rising 26.2% year on year to S$104.5 million.

DPU inched up 2.8% year on year to S$0.1099, giving the REIT a TTM DPU of S$0.1467.

Parkway Life REIT’s units deliver a TTM distribution yield of 4%.

The REIT continues to have a right-of-first-refusal over a Singapore hospital, Mount Elizabeth Novena, for 10 years.

It recently completed the acquisition of two Japanese nursing homes in October last year and is looking at developing a third key market for growth in the mid to long term.

Want more dividends in 2024? Our latest FREE report spotlights five Singapore REITs with distribution yields of 5.5% or more, a rare find in today’s market. These are reliable, proven performers. Just one stock inside could boost your portfolio’s returns in the next few months. Download your report today and start reaping the benefits.

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Disclosure: Royston Yang owns shares of Keppel DC REIT and Mapletree Industrial Trust.





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