Most Undervalued REIT in July 2025

 

There are currently many attractive blue-chip REITs on SGX due to the US Fed's high interest rate environment pushing down REITs' share prices. One stand out blue-chip REIT trading at a steep discount is Mapletree Industrial Trust (ME8U). Mapletree Industrial Trust (MIT) is a blue-chip REIT with total asset under management (AUM) worth $9.1 billion as of 31 March 2025 comprising of 56 properties in North America, 83 properties in Singapore and 2 properties in Japan. These properties consist of data-centres, high-tech buildings, Business Park buildings, Flatted Factories, Stack-up/Ramp-up Buildings, and Light industrial buildings. Here are 4 reasons why MIT is one of the most undervalued REITs in July 2025.

1. Strong Sponsor  

MIT is sponsored by Mapletree Investments Pte Ltd. Mapletree Investments Pte Ltd is one of the 4 largest property companies in Singapore. It is a global real estate firm with $80.3 billion worth of properties consisting of logistics, office, data centre, student housing, and other properties located across 13 markets globally as of 31 March 2025. A strong REIT sponsor is important as it provides stability and confidence to the REIT and allows the REIT to acquire properties at a discount. 

2. Long dividend history of  > 10 years 

MIT has been paying out dividends steadily at regular intervals since 2010 and has not missed a single dividend payment. Reliable dividend payouts are an important factor when selecting a REIT, as they reflect good management and a healthy balance sheet with positive cash flow to investors. An added benefit of the MIT dividend payout is that it is paid quarterly instead of biannually. Dividend investors can be confident that Mapletree Industrial Trust will consistently pay out dividends at a regular interval.

3. Well-diversified tenant portfolio with a high occupancy rate

A well-diversified tenant portfolio is one of the hallmarks of a good REIT. It ensures the REIT is not overly reliant on any one tenant for its income. Moreover, a high occupancy rate of >90% shows that the REIT consists of high-quality properties that are in demand and helps to maximise profit for the REIT, thereby increasing dividends. MIT's tenant base consists of >2000 tenants across 141 properties in North America, Singapore, and Japan. The largest tenant in MIT only contributes 6.0% of its gross rental income, and the top 10 tenants contribute 29.5% of its gross rental income. MIT has a high occupancy rate of 91.6% across all of its properties. Therefore, MIT is a solid blue-chip REIT with a well-diversified tenant portfolio with a high occupancy rate.  

4. Attractive dividend yield of >6.0% 

REITs have had a tough 2 years with the US Fed's high interest environment putting pressure on REITs' debt. Most of Singapore's blue-chip REITs' share prices have been pummelled down over the past 2 years. However, I think this is an extremely good opportunity to accumulate REITs at a massive discount with attractive dividend yields. At its current share price of $2.00 (As of 11 July 2025), MIT has a dividend yield of roughly 6.78%. This is an amazing dividend yield for a high-quality blue-chip REIT. Furthermore, the dividend yield and share price will only increase in the long run when the US Fed eventually lowers the interest rate, when inflation has cooled.  A stable 6.78% return is more than any savings account can get you in Singapore. 

These are the 4 reasons why you should consider adding this high-quality blue-chip REIT to your dividend portfolio in Jul 2025. 

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