Top 5 REITs to buy in 2020

1. CapitaMall Trust

CapitaMall Trust is one of Singapore’s largest and oldest retail REITs. It is considered a blue-chip REIT that is included in the STI. It boasts a solid portfolio consisting of 15 properties valued at $10 billion. It consists of famous retail malls including Junction 8, Raffles City Singapore, Bugis +, Tampines mall. If you live in Singapore, you would definitely have been to at least one of its malls. CapitaMall Trust is sponsored by CapitaLand Limited which is one of Asia’s largest property developers which further adds to its attractiveness. It consists of an extensive tenant network with more than 3000 leases and a high tenant occupancy rate of 98.3%. It has a 18 year consistent dividend history and the average dividend yield across the past 5 years is 5.3%. Furthermore, it has an appropriate debt gearing ratio of 32.9% which is well within the threshold level of <40%. In my opinion, its current share price of $2 due to the coronavirus outbreak and circuit breaker measures is a massive discount and you will definitely benefit from purchasing this REIT in the long run. You can find out more about its portfolio here.




2. Mapletree Industrial Trust

Mapletree Industrial Trust has a portfolio consisting 87 industrial properties in Singapore and 27 date centres in North America with a total valuation of $5.9 billion. MIT is sponsored by Mapletree Investments Pte Ltd. From June 2020 onwards, it would be an official blue-chip REIT as it would replace SPH in the STI. It has a diversified tenant portfolio and high tenant occupancy rate of 91.5%. In addition, it has a low debt gearing ratio of 33.8%, making it a stable and safe REIT to own. It has a 10 year consistent dividend history and the average dividend yield for the past 5 years is 4.2%. In my opinion, industrial REITs have lots of room for growth due to the booming development of e-commerce. Furthermore, industrial REITs have been shown to be resilient compared to the other sectors in this coronavirus pandemic. You can find out more MIT portfolio here.



 

3. Ascendas REIT

Ascendas REIT is one of Singapore’s most popular and known industrial REIT. It has an extremely well diversified portfolio comprising properties in Singapore, Australia, United Kingdom and United States with a total valuation of $12.8 billion. It is a blue-chip REIT that is included in the STI and is strongly sponsored by CapitaLand Limited and Ascendas-Singbridge Group. It has a diverse tenant portfolio spanning across 4 countries and a high tenant occupancy rate of 91.7%. Ascendas REIT has a 18 year consistent dividend history and the average dividend yield for the past 5 years is 4.9%. The debt gearing ratio for Ascendas REIT is 36.3% which is well within the limit of <40%. I strongly feel that Ascendas REIT is a ‘must-have’ REIT for anyone building a dividend portfolio in Singapore given its excellent track record and well managed portfolio. You can find out more about Ascendas REIT portfolio here.




4. Frasers Centrepoint Trust

Frasers Centrepoint Trust is another prominent retail REIT in Singapore. It has a portfolio that consists of 6 suburban malls in Singapore that are strategically located near MRT stations with a  total valuation of $2.8 billion. It includes popular shopping malls such as Changi City Point, Northpoint City North Wing and Causeway Point. FCT is sponsored by Frasers Property Limited and has a debt gearing ratio of 33.2%. It has a 13 year consistent dividend history and the average dividend yield for the past 5 years is 4.9%. It has a relatively diverse tenant portfolio and a high tenant occupancy rate of 96.5%. In my opinion, retail REITs are trading at a discount now due to the coronavirus outbreak and FCT is no exception. It is a stable REIT and has a proven track record. I feel that its current price of $2.3 is a bargain and it will definitely return to its high of $2.9 in the long run. You can find out more about its portfolio here.




5. CapitaLand Commercial Trust

CapitaLand Commercial Trust is one of Singapore’s most popular commercial REIT. It has a portfolio comprising properties in Singapore and Germany with a total valuation of $11.6 billion. It includes properties such as Capital Tower, Asia square tower 2 and Raffles City Singapore. In addition, CapitaLand Commercial Trust is sponsored by CapitaLand Limited. It has a 15 year consistent dividend history and the average dividend yield for the past 5 years is 4.8%. It has a well diversified tenant portfolio and a high tenant occupancy rate of 97.6%. CapitaLand Commercial Trust has an appropriate debt gearing ratio of 34.9%. I personally feel that CapitaLand Commercial Trust is an extremely stable REIT with a proven track record that is always good to include in your portfolio for the long run. You can find out more about CapitaLand Commercial Trust portfolio here.



 

 

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