5 Best High Dividend Singapore REITs To Buy in 2024 (Updated)
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Are you an investor looking for the best Singapore REITs to buy right now, but don’t know where to get started?
Getting a 5-figure annual dividend yield is not impossible, especially if you are investing in some of the best Singapore REITs.
- Quality REITs offers high dividend yield that generates a stable passive income for years to come.
- REIT offers a low risk way for us to invest in properties in Singapore with little investing capital.
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.
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, commercial REIT, healthcare REITs, hospitality REIT and data center REITs
What follows, are my handpicked list of my favorite REITs to buy in Singapore. For each of the REITs, I’ve make a note to myself on the risk level, the volatility level and the moat level which are extremely subjective depending on each person. This is not investment advice, but my own personal opinion that I am sharing here.
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.
Stocks Trading Data
Parkway Life REIT is trading with the following stock information at the time of writing:
- Price: 3.690
- P/B ratio: 1.577
- P/E ratio: 56.41
- ROE: 2.76%
- EPS 5 year growth: -16.52%
- Dividend Yield: 3.52%
- Dividend Yield 5 yr-average: 3.222%
My thoughts about Parkway REIT:
- P/B is good, having lower than 1.8.
- ROE is on the low side, higher will be better.
- EPS is kinda low, higher will be better.
- Dividend yield is acceptable.
- 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.
Risk Level:
Low
Volatility Level:
Low
MOAT Level:
Good
Dividend Frequency:
Semi-Annually
Do note the analysis is purely my personal opinion.
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.
Stocks Trading Data
Keppel DC REIT is trading with the following stock information at the time of writing:
- Price: 1.820
- P/B ratio: 1.321
- P/E ratio: 14.91
- ROE: 9.23%
- EPS 5 year growth: 18.85%
- Dividend Yield: 4.21%
- Dividend Yield 5 yr-average: 3.838%
My thoughts about Keppel DC REIT:
- P/B is good, having lower than 1.8.
- ROE is good, close to 10%.
- EPS is just amazing.
- Dividend yield is acceptable.
- Keppel DC REIT have a average MOAT.
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.
Risk Level:
Low
Volatility Level:
High
MOAT Level:
Good
Dividend Frequency:
Semi-Annually
Do note the analysis is purely my personal opinion.
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.
Stocks Trading Data
Fraser Logistic and Commercial Trust is trading with the following stock information at the time of writing:
- Price: 1.130
- P/B ratio: 0.966
- P/E ratio: –
- ROE: -2.24%
- EPS 5 year growth: -%
- Dividend Yield: 6.06%
- Dividend Yield 5 yr-average: 5.271%
My thoughts about Fraser Logistic and Commercial Trust:
- P/B is good, having lower than 1.8.
- ROE is BAD, lower than 10%.
- EPS is BAD.
- Dividend yield is good.
- Fraser Logistic and Commercial Trust have a good MOAT.
Currently, the financial for this REIT look pretty BAD, most likely due to the following reasons:
- Softening of Australian dollar
- Occupancy challenges due to the general market sentiment
- Portfolio revaluation decreases due to market downturn
In my opinion, I really like this REIT, and I do own some of it (depending when you read this article).
Maybe just personal biasness as I was a long time holder of this REIT (emotions does gets into the way), but here are some reasons why I like this REIT:
- Fraser Logistic and Commercial Trust have most of it’s assets focusing on logistic, and a good mix on the commercial properties.
- With the merger of Fraser Logistic Trust and Fraser Commercial Trust, it is one of the largest REITs listed in Singapore.
- A strong history of rental growth and property acquisition.
- Management team shows to manage the REITs pretty decently, especially during the pandemic.
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.
Risk Level:
Low
Volatility Level:
Mid
MOAT Level:
Good
Dividend Frequency:
Semi-Annually
Do note the analysis is purely my personal opinion.
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 the following countries:
- Singapore, Hong Kong SAR, Japan, China, Australia, South Korea, Malaysia and Vietnam.
Stocks Trading Data
Mapletree Logistics Trust is trading with the following stock information at the time of writing:
- Price: 1.670
- P/B ratio: 1.089
- P/E ratio: 15.06
- ROE: 7.06%
- EPS 5 year growth: -6.758%
- Dividend Yield: 4.89%
- Dividend Yield 5 yr-average: 4.700%
My thoughts about Mapletree Logistic Trust:
- P/B is good, having lower than 1.8.
- ROE is average, higher will be better.
- EPS is LOW, higher will be better.
- Dividend yield is acceptable.
- Mapletree Logistic Trust have a good MOAT.
Currently, the EPS for this REIT look pretty LOW, most likely due to the following reasons:
- Weaker performance in China
- Properties that were divested or undergoing redevelopment
- Softening of Yuan, Yen, Hong Kong dollar and Australian dollar
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.
Risk Level:
Low
Volatility Level:
Mid
MOAT Level:
Good
Dividend Frequency:
Quarterly
Do note the analysis is purely my personal opinion.
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:
- Exposure to: Singapore, Germany and Australia
- Other exposure to: CICT have 26+ properties worldwide.
Stocks Trading Data
CapitaLand Integrated Commercial Trust (CICT) is trading with the following stock information at the time of writing:
- Price: 2.010
- P/B ratio: 0.947
- P/E ratio: 19.07
- ROE: 4.94%
- EPS 5 year growth: -10.098%
- Dividend Yield: 4.46%
- Dividend Yield 5 yr-average: 4.045%
My thoughts about CICT:
- P/B is good, having lower than 1.8.
- ROE is on the low side, higher will be better.
- EPS is LOW, higher will be better.
- Dividend yield is acceptable.
- CICT have a very good MOAT.
Currently, the EPS for this REIT look pretty LOW, most likely due to the following reasons:
- High interest cost due to high interest rate environment
- Portfolio occupancy rate is on the way to recovery
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.
Risk Level:
Low
Volatility Level:
Low
MOAT Level:
High
Dividend Frequency:
Semi-Annually
Do note the analysis is purely my personal opinion.
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.
4. Distribution Policy
Understanding the dividend distribution policy of the REITs is just as important. Depending on each REITs, they can be paying out dividend at different timeframe.
- Monthly dividend distribution: 12 times a year
- Quarterly dividend distribution: 4 times a year
- Semi-annually dividend distribution: Twice a year
- Annual dividend distribution: Once a year
Most REITs in Singapore offers semi-annual dividend distribution. Always look for REITs that offers stable dividend distribution if you are looking to use REITs as a passive income stream.
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.
PS. 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 trading and commission fees
- Designed to be an easy-of-use trading platform
- Give investors the ability to invest on the go
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.
- Extra S$20* FREE Cash Coupon.
- Claim 4 x FREE stock bundle worth S$280* with $10,000 deposit & 8 buy trades.
- Get additional S$260* FREE AAPL stock with $100,000 deposit.
- Earn 31 days 6.8%* p.a. return on idle cash with Moomoo Cash Plus
- Low commission fee for SG and HK stocks, ETFs and options.
- Lifetime $0 commission free* for US stocks.
Moomoo Promo: Low Commission + Free Stock
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
- Top Singapore Stock Trading Platform For Beginners
- Which are the best Low-Risk Investment to invest in Singapore.
- Best Cash Management Account (CMA) to grow your uninvested cash in Singapore.
Investing in different stock market:
- Singapore: Buying Singapore Stocks For Beginners.
- United States: Buying US Stocks from Singapore with $0 Commission fees.
- 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, while I’ve been investing for +15 years, I am still learning. I wish to share what I learn during my investment journey so you may learn from both my success and mistakes. Enjoy!
- Average Brokerage Fee in Singapore: 20+ Broker Fees Compared
- 73 Singapore SGX-Listed ETFs Dividend Distribution Frequency (Monthly to Annually)
- Dividend Investing Singapore: Complete Beginners Investor Guide
- 41 Singapore REITs (S-REITs) Dividend Distribution Frequency
- Best Undervalued Stocks in Singapore That Pays High Dividend in 2024 (Updated)
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Antony C. is a dividend investor with over 15+ years of investing experience. He’s also the book author of “Start Small, Dream Big“, certified PMP® holder and founder of IncomeBuddies.com (IB). At IB, he share his personal journey and expertise on growing passive income through dividend investing and building online business. Antony has been featured in global news outlet including Yahoo Finance, Nasdaq and Non Fiction Author Association (NFAA).
