3 Singapore REITs That Just Increased Their Dividend

May 18, 2023

Singapore real estate investment trusts, also known as S-REITs, have been gaining significant traction over the past month as we near the end of the interest rate hike cycle.

As the risk of a potential recession mounts, S-REITs are emerging as an attractive investment alternative for investors aiming to enhance their income and diversify their portfolios.

A key strategy for dividend investors to consider involves focusing on the growth of the distribution per unit (DPU), a powerful indicator of potential income, performance, and reliability.

So, for investors who want sustainable, and rising, passive income here are three S-REITs that have successfully expanded their DPU in the challenging economic landscape of the past year.

1. Keppel DC REIT

Keppel DC REIT (SGX: AJBU) had been a solid performer, with a portfolio of 23 data centres across nine countries, valued at S$3.7 billion as of Q1 2023.

The REIT’s gross revenue and net property income (NPI) saw respective increases of 6.5% and 6.3% year-on-year (yoy), reaching S$70.4 million and S$63.9 million.

The strong performance lead to an increase in its DPU.

Keppel DC REIT’s DPU for the quarter was 3.0% higher yoy at 2.541 Singapore cents, driven by a 4.1% yoy increase in distributable income to $46.3 million.

2. Parkway Life REIT

Parkway Life REIT (SGX: C2PU), a healthcare REIT, witnessed a substantial improvement in its gross revenue and NPI by 21.7% and 23.5% yoy, respectively, for Q1 FY2023.

In line with the stronger financial performance, Parkway Life REIT’s DPU for the quarter also increased by 2.5% yoy to 3.65 Singapore cents.

3. Mapletree Logistics Trust

Mapletree Logistics Trust (SGX: M44U) reported a 7.7% rise in gross revenue for FY2023, with NPI increasing by 7.2% year on year.

The logistics REIT also announced a string of positive operating metrics for FY2023, including a high portfolio occupancy and a revaluation gain of S$224.2 million.

The strong performance has helped Mapletree Logistics Trust to increase its DPU by 2.5% yoy to 9.011 Singapore cents in FY2023.

Invest in S-REITs that have demonstrated strong track record

S-REITs have demonstrated resilience and growth despite of the challenging economic environment, showcasing their potential as a beneficial addition to investors’ portfolios.

By investing in S-REITs that are able to grow their DPUs consistently, investors will be able to protect their portfolio from volatile markets.

The impressive results shown by the three S-REITs mentioned here underscore their strong potential for future growth, reinforcing S-REITs’ standing as an attractive investment vehicle.

Disclaimer: ProsperUs Investment Coach Billy Toh doesn’t own shares of any companies mentioned.

Billy Toh

Billy is passionate about the capital market and believes in investing for the long haul. Prior to this, he was an economist at RHB Investment Bank, covering Thailand and Philippines market. He also worked as a financial journalist at The Edge Malaysia and has experience working with an asset management firm. Aside from the capital market, Billy loves a good conversation over a cup of coffee, is a fitness enthusiast and a tech geek.

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