Real estate investment trusts have become increasingly popular in the past few years, as it is one way retail investors can earn passive income with a small investment outlay. If you are looking to increase your passive income in the same manner, here are five of the best REITs to invest in Singapore.
Ascendas Real Estate Investment Trust
Ascendas Real Estate Investment Trust (SGX: A17U) has a market cap of over SGD12 billion. It is also one of the 30 Singaporean companies that form the Straits Times Index. This investment trust is the largest industrial entity in Singapore, with assets in various niches like logistics, warehouse facilities, and industrial buildings that produce food, electronics, and more. The company has evolved by buying business and science parks and data centers in the past few years.
Ascott Residence Trust
Ascott Residence Trust (SGX: HMN) is one of the iconic property ventures of CapitaLand. The company has operated since the 1980s, starting as Scotts Holdings. Now, the business is worth more than SGD7 billion, with more than 86 properties in 38 cities across the world. As a REIT associated with CapitaLand, Ascott Residence Trust is the most significant hospitality trust in the region, with an impressive market cap of SGD3.3 billion.
CapitaLand Integrated Commercial Trust
CapitaLand Integrated Commercial Trust (SGX: C38U) has recently become the third-largest REIT in Asia. This investment trust is the largest one in Singapore, with over SGD14 billion worth of assets. The company’s starting portfolio included Tampines Mall, Junction 8, and Funan DigitaLife Mall.
Today, the Funan Mall holds over 200 brands, many of them in flagship-concept stores. Most of CICT’s assets combine both retail and office spaces. This solves the problem with the limited land space in Singapore, providing people with a convenient work-life environment. Let’s not forget the growing dividends that have reached 3.2% in 2020. In the long run, investors can easily see a yield percentage of around 5.5%.
Frasers Centrepoint Trust
Frasers Centrepoint Trust (SGX: J69U) is another significant Singapore REIT. It specializes in 11 retail malls, which you can find in the megalopolis suburbs. They are very conveniently located in close proximity to MRT stations.
Despite the COVID-19 pandemic, the company still generated gross revenue of more than SGD64 million. As the world walks out of the pandemic’s shadow, the investment trust is likely to improve its performance as it welcomes back the hordes of shoppers. Frasers Centrepoint Trust offers a reasonable dividend yield of 3.6%, which is predicted to rise to 4.8%.
Last year was not the best year for Lendlease REIT because of the COVID-19 pandemic. But against all odds, this new REIT boasts a market cap of more than SGD950 billion. The exciting thing about this REIT is that it has only two assets: the 313@Somerset shopping mall and Sky Complex. The former brings in 66% of the company’s rental income, while the latter is a Grade A office building in Milan, Italy.