With the highest number of foreign REITs listing in the world, Singapore has the largest REITs market In Asia (excluding Japan). Recognised as a global REITs hub, the REITs market accounts for over 12% of Singapore Exchange (SGX) total market capitalisation.
After taking a hit in 2020 from the pandemic, the Singapore REITs (S-REITs) market has seen a gradual recovery on the prospect of moving towards a vaccinated world. During the first half of 2021, S-REITs generated a total return of 8.9%.
For investors who want to invest in REITs for dividend income, there are multiple REIT options that you can consider. Among them, Mapletree Investments Pte Ltd owns the most S-REITs listing with a combined market capitalisation of $27 billion.
In this week’s edition of 4 Stocks This Week, we look at four S-REITs from the Mapletree family that represents over a fifth of Singapore’s REITs market, and their performance thus far in 1H21.
#1 Mapletree North Asia Commercial Trust (SGX: RW0U)
The largest REIT listing in Singapore raising over US$1.4 billion, MNACT (SGX: RW0U) was listed in 2013. A diversified REIT with holdings in both retail and office, MNACT provides investors exposure to prime properties in China, Hong Kong, Japan, and South Korea.
In the first half of 2021, we can see MNACT gradual recovery as China, Hong Kong, Japan, and South Korea COVID-19 situation improved. Lesser rental relief was given out to tenants this year due to the festive seasons in the first half of the year that boosted sales.
The strongest performing REIT in the Mapletree family, Mapletree NAC delivered a total return of 7.22% in 1H21. Currently, MNACT distributes its dividend semi-annually.
The share price closed this week at $1.03 with a dividend yield of 5.94%. MNACT current total market capitalisation is at $3.55 billion.
#2 Mapletree Logistics Trust (SGX: M44U)
One of the least affected REITs by the pandemic, MLT (SGX: M44U) is the first Asia-focused logistic REIT in Singapore. Listed in 2005, MLT owns logistics real estate in China, Hong Kong, Japan, South Korea, Australia, Singapore, Malaysia, Vietnam.
Although MLT was impacted by the 2021 Suez Canal obstruction, it rebounded back quickly as e-commerce demand remain strong in 2021. Talks on acquiring logistics property in India is still on the table as MLT looks to expand its market presence.
Delivering a total return of 3.02% in 1H21, MLT is the second-best performing REIT in the Mapletree family with a quarterly distribution of dividends.
At a market capitalisation of $9 billion, MLT share prices closed this week at $2.05 with a dividend yield of 3.71%.
#3 Mapletree Commercial Trust (SGX: N2IU)
Another office and retail REIT in the Mapletree family, MCT (N2IU) focuses on Singapore real estate. Listed in 2011, MCT is known for its five prime properties – VivoCity, Mapletree Business City I, PSA Building, Mapletree Anson and Bank of America Merrill Lynch HarbourFront. The valuation of the five properties is about $8.7 billion.
Having been affected by the recent Phase 2 (Heighten Alert) in May 2021, MCT has since rebounded to the recovery of pre-Phase 2 (Heightened Alert) price. The commitment to a vaccinated nation and an acceptance to the New Normal has helped pave a path to recovery for Singapore focused office and retail REITs.
Coming in third for its performance in 1H21, MCT delivered a total return of 0.93%. For dividend payouts, MCT follows a quarterly distribution to shareholders.
Ending the week at $2.190 with a dividend yield of 3.68%, MCT has a total market capitalisation of $7.27 billion.
#4 Mapletree Industrial Trust (SGX: ME8U)
With 84 Singapore properties under its portfolio, MIT (SGX: ME8U) listed back in 2010. Having recently acquired 29 US data centres through a joint venture with Mapletree Industrial, MIT is no longer just a Singapore focused REIT.
Previously focusing on managing Singapore industrial facilities, MIT has since diversified to US-based data centres. MIT would continue to shift its focus on database centres with aims to be one of the largest Asia Pacific data centres REIT.
The last in rank for 1H21, MIT has a negative return of -1.75%. For investors, the dividend pay-outs are given quarterly.
With a total market capitalisation of $7.60 billion, MIT closed the week at $2.86 with a dividend yield of 3.85%.
Invest in REITs ETFs on SGX For Exposure On Mapletree REITs
With 4 Mapletree REITs to pick from, we can be spoilt for choice for our investment picks. Regardless, we can invest in ETFs to get exposure on almost all Mapletree REITs in one investment. An example of a REITs ETF listed on SGX would be Nikko AM REITs ETF (SGX: CFA/COI). The ETF currently holds 20.8% of its portfolio in MLT, MIT and MCT, giving investors ample exposure to Mapletree family REITs.
If you are keen to find out more about the NikkoAM REITs ETFs, join us online on 15 July, 12 pm – 1.30 pm as we discuss on Facebook Live how ETFs can help Singapore investors achieve their investment goals.
Indicate your interest to attend the event on the Facebook Page and do send across any burning question to might have to our Pigeonhole. We will try our best to respond to all questions during the live event on 15 July.
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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.