REITs are a favourite investment for Singapore investors. They payout 90% of their income as distributions, thus giving investors a relatively good yield on their investment. Being property-driven investments, we can also see its allure among Singapore investors.
In the early part of 2020, REITs prices crashed along with many global investments when COVID-19 uncertainties were at its highest. In the table below, we can see that from the start of the year to its lowest point in mid-March, prices dropped close to 35%. It has since rebounded strongly, but still losing over 6% of its value in the year-to-date 2020.
While this represents the entire REIT market in Singapore, there are still individual REITs that have performed better – especially since the recovery of hospitality REITs have understandably lagged behind.
In this edition of 4 Stocks This Week, we look at the 4 best performing REITs listed in Singapore.
Keppel DC REIT (SGX:AJBU)
KDC REIT (SGX:AJBU) is a data centre focused REIT, currently with 18 data centres in Singapore, Malaysia, Australia, Germany, the UK, Italy, the Netherlands and Ireland within its portfolio.
In the chart below, you can see that KDC REIT was not spared from the sharp market crash in the middle of March 2020. Regardless, its share price has rose strongly after that – going even higher than its Pre-COVID-19 highs.
As e-commerce and digital businesses were best suited to ride out the COVID-19 downturn, demand for its data centres has understandably increased, along with investors wanting exposure to such properties.
During the year-to-date 2020, its share price has risen 34% to $2.79 from $2.08 at the start of the year. It has also continued to pay distributions in the year, amounting to $0.06325 – or slightly higher than 3% of its share price at the start of 2020.
This means KDC REIT has returned delivered a total return of 37% in 2020.
Frasers Logistics & Commercial Trust (SGX:BUOU)
Also riding the e-commerce and digital wave, FLCT (SGX:BUOU) is another REIT that has seen its share price go higher than pre-COVID-19 levels.
Frasers Logistics & Commercial Trust is the merged entity between Frasers Logistics & Industrial Trust and Frasers Commercial Trust to become a larger and stronger REIT business. Today, FLCT owns a solid portfolio of 100 logistics and commercial properties in Australia, Germany, Singapore, the UK and the Netherlands.
In the year-to-date FLCT’s share price has increased 15% to $1.43, from $1.24 at the beginning of 2020. It’s distributions during 2020 has amounted to $0.0712, which is about 6% of its share price at the start of 2020.
This brings its total returns for 2020 to 21%.
ParkwayLife REIT (SGX:C2PU)
PLife REIT (SGX:C2PU) is well-known for its portfolio of 3 hospitals in Singapore – Mount Elizabeth, Gleneagles and Parkway East – and 49 nursing home properties in Japan. In addition, it also has a specialist clinic in Malaysia.
In the year-to-date, PLife REIT has seen its shares soar 17% to $3.87 from $3.32, on the back of the health-related economic uncertainties. In addition, it has continued to pay out stable distributions amount to $0.1356, which translates into 4% of its start-of-year share price.
Mapletree Logistics Trust (SGX:M44U)
MLT (SGX:M44U) is another REIT that benefitted from the acceleration of e-commerce and digital solutions in 2020. MLT owns a diversified portfolio of logistics properties in Singapore, Hong Kong, Japan, China, Australia, South Korea, Malaysia and Vietnam.
In the year-to-date 2020, MLT’s share price has increased to $1.96 from $1.74, representing a 13% rise. It also paid distributions amounting to $0.08135, which translates into 5% of its share price at the start of the year.
Overall, MLT has delivered a total return of nearly 18% during 2020.
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4 Stocks This Week is not a recommendation from us to buy or sell any of these stocks. For investors who are keen to find out more, you should continue researching about them before making your investment decisions.