5 Best High Dividend Singapore REITs To Buy in 2023

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Are you an investor looking for the best Singapore REITs to buy in 2023, but don’t know where to get started?

Quality REITs offers not only high dividend yield that offers a way for us to make a substantial passive income for years to come, REIT offers a low risk way for us to invest in properties in Singapore. Getting a 5-figure annual dividend yield is not impossible, especially if you are investing in some of the best Singapore REITs.

In Singapore, we have many different Real Estate Investment Trust (REITs) listed on the SGX, where Singaporeans can buy. Here we will look into the best REIT we can buy listed in Singapore.

KEY TAKEAWAYS

Real Estate Industrial Trust (REITs) offer a low cost, high return option for dividend investors and real-estate investors to grow their wealth passively.

Building passive income through REITs investing is one of the best ways to build generational wealth.
Together with the company’s MOAT and financials, we can identify the best REITs to invest.

PS. This is not a piece of investment advice, this is an opinion article and is purely for entertainment purposes only. You should always do your due diligence when you invest.

Best High Paying Dividend REITs to Buy in Singapore

In Singapore, we have different types of REITs such as; office REITs, industrial REITs, retail REITs, healthcare REITs, hospitality REIT, data center REITs, and commercial REIT. What follows, are my handpicked list of my favorite REITs to buy in Singapore.

1. Parkway Life REIT (C2PU.SI)

Parkway Life RIET is a hospital REIT to owns and operates a portfolio of hospitals in Singapore. Parkway Life REIT own and operate the following properties, all of which are located in Singapore: The Mount Elizabeth Hospital Property; The Gleneagles Hospital Property; and The East Shore Hospital Property.

Established in 2007, Parkway REIT is one of the largest hospital REIT in Singapore.

Parkway Life REIT is trading with the following stock information at the time of writing:

Price: 3.750
P/B ratio: 1.626

P/E ratio: 55.74
ROE: 2.89%
EPS 5 year growth: -16.52%

Dividend Yield: 3.36%
Dividend Yield 5 yr-average: 3.222%

Parkway Life REIT have a very good MOAT.

In my opinion, this is a good REIT if you are looking for stability and when you buy it at the right price.

2. Keppel DC REIT (AJBU.SI)

Keppel DC REIT is a pureplay datacenter REIT that listed on the Singapore stock exchange (SGX). With a diverse portfolio of key data center hubs located across Asia Pacific and Europe, this REIT aims to capture value from the growth in the demand of the data center industry.

They currently have data centers located in the following countries: Singapore, Australia, China, Malaysia, Germany, Ireland, Italy, The Netherlands and United Kingdom.

Keppel DC REIT is trading with the following stock information at the time of writing:

Price: 2.040
P/B ratio: 1.459

P/E ratio: 15.25
ROE: 9.81%
EPS 5 year growth: 18.85%

Dividend Yield: 4.65%
Dividend Yield 5 yr-average: 3.838%

Keppel DC REIT don’t only have a very good MOAT, it have a very high potential for future growth.

In my opinion, it is probably the top of my list as one of the best Singapore REITs with high growth potential if you get it at the right price.

3. Fraser Logistics and Commercial Trust (BUOU.SI)

Fraser Logistic and Commercial Trust is a diversified REIT that is both industrial REIT and commercial REIT. Initially it was two separate REITs namely; Fraser Logistics Trust and Fraser Commercial Trust. These two REITs was later combined into one of the biggest REITs in Singapore.

Having a diversified portfolio of income-producing real estate assets which are predominantly used for logistics, industrial or commercial purposes, it owns and operates assets over a few countries; Australia, Germany, Singapore, the United Kingdom and the Netherlands.

Fraser Logistic and Commercial Trust is trading with the following stock information at the time of writing:

Price: 1.200
P/B ratio: 0.949

P/E ratio: 8.05
ROE: 11.66%
EPS 5 year growth: -%

Dividend Yield: 5.90%
Dividend Yield 5 yr-average: 5.344%

Fraser Logistic and Commercial Trust have most of it’s assets focusing on logistic, and a good mix on the commercial properties.

While I will prefer, that it have not merge and remains as Fraser Logistic Trust instead of Fraser Logistic and Commercial Trust, the current management team shows to manage the REITs pretty decently.

In my opinion, I really like this REIT, and I do own some of it, depending when you read this article. Anyway this is just a sharing of my thoughts of the REITs and it is not any form of investment advice, do make your own decision when making any form of investment.

Personally, I think this is a good Singapore REITs to buy at the right price.

4. Mapletree Logistics Trust (M44U.SI)

Mapletree Logistics Trust is an industrial REIT that is a subsidiary of Mapletree Investments Pte Ltd. Started from Singapore, this REIT have grown to owning and managing over 140 properties across the Asia Pacific region.

With this REIT, you essentially invested in all the different logistic related real estate in Singapore, Hong Kong SAR, Japan, China, Australia, South Korea, Malaysia and Vietnam.

Mapletree Logistics Trust is trading with the following stock information at the time of writing:

Price: 1.620
P/B ratio: 1.058
P/E ratio: 14.54

ROE: 7.19%
EPS 5 year growth: -6.758%
Dividend Yield: 4.95%

Dividend Yield 5 yr-average: 4.700%

Mapletree Logistics Trust have a very good MOAT, and with this REIT you are basically like buying a logistic ETFs that is managed by some of the best managers.

In my opinion, it is a good REIT to buy if you believe in the future of logistic growth around the world.

5. Capitaland Integrated Commercial Trust (C38U.SI)

CapitaLand Integrated Commercial Trust (CICT) is the largest REIT in Singapore, following the merger between CapitaLand Mall Trust and CapitaLand Commercial Trust (CCT).

Focused on quality income-producing assets used for commercial purpose, such as office, retails and integrated development most of it’s assets are located predominantly in Singapore (>90%).

Own and managing assets in countries like, Singapore, Germany and Australia CICT have 26+ properties worldwide.

CapitaLand Integrated Commercial Trust (CICT) is trading with the following stock information at the time of writing:

Price: 1.980
P/B ratio: 0.952

P/E ratio: 18.54
ROE: 5.22%
EPS 5 year growth: -10.098%

Dividend Yield: 4.42%
Dividend Yield 5 yr-average: 4.045%

CapitaLand Integrated Commercial Trust (CICT) is focus primarily in Singapore, and as a Singapore investor, investing in REITs which I get to understand it’s operation is an important factor to consider.

As the largest REIT in Singapore, CICT have a very good MOAT.

In my opinion, it is one of the most stable Singapore REITs if you buy it at the right price.

Criteria For Selecting The Best High Dividend Singapore REITs

There are a few criteria where I use when choosing which REITs should I invest. While different investors have their own set of criteria and what I think is important may not be the case for someone else who have a very different goal in risk profile in investing.

When I invest in REITs, I look for stability, increase dividend distribution and overall confidence in owning the REIT for a long period of time. When I say long, I mean 10 years and more.

So here are some of the criteria I will look for.

1. MOAT

Probably the most important criteria when I am assessing any investment is it’s MOAT. To me, the MOAT of the company is the biggest criteria when assessing the REIT, because it represents the ability to hole the REIT for long-term without fearing that the REIT going bust.

2. Stable Dividend Yield

As a dividend investor, the main reason I choose to invest is to earn dividend, a form of passive income where I can use it to grow my wealth. The distribution yield of the REIT should be more than 4% or higher, otherwise it will be safer to put my money into other low risk investment that can offer a similar interest rate.

3. Dividend Growth

As a long-term investor, I look for REITs that have the potential or shows promise of future dividend growth, this allows me to grown my dividend income without investing more of my money into the stocks.

Diversification But Not Diworsification

REITs is a great way to earn a passive income through your investment, however it is good to note that it is important to own a diversified portfolio of REITs and not just have all your eggs in just 1 basket.

Diversify your portfolio and invest in a few great REITs, but not too many. I’ve made my mistake previously in investing in good stocks and have not invest enough in the great stocks.

If you have $10,000 to invest, put into a maximum of 3 different REITs.
If you have $100,000 to invest put into no more than 5 different REITs.

When you own more than 10 or 20 different types of stocks or REIT, you won’t get to know each of them well enough to make the right investment decision.

I own approx. 5-10 different individual stocks in Singapore, and if I want to diversify further, I will choose to put my money into ETFs, where it helps me grow my money at low risk and maximum return.

Looking For Low Fee Online Brokerage In Singapore To Start Investing?

Finding the best REITs to buy and hold for passive income is a great way to earn passive income, however, knowing which brokerage platform to buy and sell your REITs is just as important. When choosing an online brokerage, choose one that offers low fees, easy-of-use trading platform, and give investors the ability to invest on the go are just some factors that is just as important.

Like you, I am always on the lookout for great online broker to help me buy and sell my stocks with ease.

Currently, I am using Moomoo, a MAS regulated online brokerage platform that can do just that. As of writing, they are offering some attractive promotions for all new signups. Go check it out if you are looking for a good online broker with low fees for your trades.

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Final Thoughts

While these are great REITs in my opinion, buying them at the right time is crucial. I love the idea of buy and hold, and to do so, I need to buy quality REITs that offers high dividend with potential dividend growth, this is the best way for lazy investors like me get invested.

Earning high yields, and passive income from my investment without me needing to sell any of my investment is my goal as an investor.

Fundamental analysis to identify good REITs with high potential of giving you a good return in the future.
Technical analysis to look at the short term movement of the REITs to understand if it is currently over brought or oversold.

These are just some REITs which I personally think are great stocks to own, however investing is a personal choice, similar to finding the best dividend stock in Singapore, always do your own research before purchasing any shares in the company.

If you are still thinking about investing and have not yet created an account with any broker or is unsure how to get started, check out my beginner investor starters guide:

Step Guide to Open a New Brokerage and CDP Account

Investing in different stock market:

China/Hong Kong: Buying China Stocks such as Alibaba, Tencent and Baidu in Singapore.

What do you think about this list of the best REITs in Singapore? Did you own any of them?

Just before you go, I’ve handpicked some articles that you maybe interested:

Disclaimer: I may or may not have invest in any of them, what’s listed here is only for entertainment purpose only and it should never be used as any form of investment advice. This is my diary on my stock analysis, although I’ve been investing for +15 years reading +50 investment related books, I am still learning. I wish to share what I know and what I learn during my investment journey so you may learn from my success and mistakes as well!

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5 Best High Dividend Singapore REITs To Buy in 2023