Looking for More Dividends? These 4 Singapore REITs Could Be Perfect for You
With high interest rates and inflation posing a threat to your savings, dividend-paying REITs have become a go-to choice for investors seeking passive income.
REIT managers have been restructuring their portfolios in both the retail and industrial space.
However, only a handful check all the crucial boxes of reliable distributions and a resilient portfolio.
Here are four Singapore REITs for investors seeking to enhance their income stream.
Keppel DC REIT or KDCR, is a sector-specific REIT in data centre infrastructure across the Asia-Pacific and Europe.
As of the end of 2024, KDCR's assets under management (AUM) has seen substantial growth to about S$5 billion which is about five times its AUM when it had its initial public offering in 2014.
For the first quarter of 2025 (1Q 2025), KDCR's distributable income increased by 59.4% year-on-year (YoY) and its distribution per unit (DPU) increased by 14.2% YoY.
In 1Q 2025, KDCR also has a high portfolio occupancy of 96.5%.
In March 2025, KDCR realised a profit from the divestment of Kelsterbach Data Centre, giving it more financial flexibility.
Moving forward, KDCR acknowledges the high opportunity for growth from strong demand for data centres as the Artificial Intelligence (AI) industry scales.
KDCR has a healthy debt profile with only 2.2% of its debt maturing in 2025.
KDCR's DPU is also less sensitive to a change in interest rates with a 0.5 percentage point increase in interest rates resulting in a low 1.1% decline for its 1Q 2025 DPU.
Capitaland Ascott Trust or CLAS, is the largest lodging trust in the Asia-Pacific with S$8.9 billion in total assets.
CLAS has a geographically diverse portfolio with properties spanning across 46 cities in 16 countries.
For 1Q 2025, the trust enjoyed a strong performance from its stable income sources such as master leases which make up 70% of its gross profit.
CLAS also experienced a 4% YoY growth of its gross profit.
In 1Q 2025, CLAS made two strategic acquisitions of Japanese hotels.
This acquisition not only increased CLAS' market exposure in Japan but also increased its distribution per stapled security by 1.6% on a 2024 pro forma basis.The acquisition also improved the trust's portfolio as the blended net operating income (NOI) of the acquired hotels was over two times that of the NOI of divested properties in 2024.
Macroeconomic challenges such as Trump's tariffs are also mitigated by CLAS due to a highly diversified portfolio in terms of properties and countries, thus reducing concentration risk.These mitigation strategies hedge against foreign currency and interest rate risk as well as a reduction in lodging demand due to rising costs.
AIMS APAC REIT or AAREIT, is an industrial REIT with a portfolio consisting of properties in Australia and Singapore.
For fiscal year 2025 (FY2025) ending 31 March 2025, AAREIT demonstrated a promising net property income growth of 2.1% YoY and a DPU growth of 2.6% YoY to S$0.096.
AAREIT also has a high occupancy rate of 93.6%.
AAREIT has several Asset Enhancement Initiatives (AEIs) such as the revitalisation of Optus Centre Campus in Macquarie Park,Australia, which will increase the functionality of the event space.
By doing so, the Campus will appeal to a wider range of tenants and improve long term tenant retention.
AAREIT also has a healthy portfolio weighted average lease expiry (WALE) value of 4.4 years which makes for a smoother and more predictable rental income stream.
As of FY2025, AAREIT has total gross debt of S$582 million with no refinancing required for FY2026.
Frasers Centrepoint Trust, or FCT, is a retail REIT which owns primarily suburban retail malls in Singapore.
For the first half of fiscal 2025 (1H FY2025), FCT reported a YoY increase of 7.3% in net property income and a 0.5% YoY increase in DPU to S$0.0605.
Its retail malls showed an increase in shopper traffic and tenants' sales by 1% YoY and 3.3% YoY, respectively.
For 1H FY2025, FCT's debt profile is healthy with an aggregate leverage of 38.6% and a cost of debt decreasing by 0.1% quarter-on-quarter to 3.9%.
The retail REIT also has a well-spread debt maturity profile and a stable credit rating.
FCT has active AEIs with the recent completion of the AEI for Tampines 1 and the commencement of the AEI of Hougang Mall.FCT had 41 new-to-portfolio tenants in 1H FY2025 such as Munchi Pancakes at NEX and Honor at Causeway Point.
The trust also has several new-to-market tenants upcoming such as OH!SOME at Suntec City and KKV at Tiong Bahru Plaza.
These efforts to revamp the malls and introduce new tenants allow FCT's malls to stay relevant, increasing foot traffic and improving tenant retention.
With the increasing number of new homes around its malls as well as increasing household income, FCT sees an increase in future consumer spending resulting in long-term growth for retail spaces.
In an environment where economic uncertainty is a primary concern, dividend reliability matters more than ever.
These four REITs exhibit not only dependable dividend payments but also sound capital management and growth potential.
Whether you are a seasoned income investor or just starting out, these REITs deserve to be in your dividend portfolio.
When the market is unpredictable, where can you park your money with confidence? Our latest FREE report reveals 5 Singapore dividend-payers built to withstand global storms. Get it now and see what's still worth holding.
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Disclosure: Gabriel Lim does not own shares of any of the companies mentioned.
The post Looking for More Dividends? These 4 Singapore REITs Could Be Perfect for You appeared first on The Smart Investor.
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