Wednesday, 31 May 2017

Top 10 Singapore REITs

That made you money if you invested from their IPOs

Lately, Sabana REIT has been getting a lot of attention when a small group of unitholders moved to kick out the manager for delivering poor performance since its IPO in 2010. Early investors who bought Sabana at an IPO price of S$1.05 are now sitting on huge losses – Sabana last traded at just 43 cents per share.

If we look at the history, Sabana REIT isn’t alone. There are several other Singapore REITs (S-REITs) like Saizen REIT, MacarthurCook Industrial REIT and Allco REIT that have run into trouble before and caused a dent in Singapore’s REIT sector. Despite some casualties, Singapore’s REIT market remains vibrant – largely thanks to the majority of S-REITs that continue to deliver good results to income investors.

In this article, we look at the performance of S-REITs with a listing history of at least 10 years. We wrote about the performance of S-REITs one year ago and this time around, we revisit the article by taking into account the latest share prices as at 31 Jan 2017 and dividends paid out to unitholders up to 2016. We also made several adjustments such as pre-consolidation shares and dividends to get a more precise and accurate picture.

Top 10 best-performing REITs (annualized returns are inclusive of dividends):
  • Fortune REIT (Annualized return: +7.7%)
  • Suntec REIT (Annualized return: +8.3%)
  • Mapletree Logistics Trust (Annualized return: +8.5%)
  • CapitaLand Mall Trust (Annualized return: +8.9%)
  • First REIT (Annualized return: +10.0%)
  • ParkwayLife REIT (Annualized return: +10.1%)
  • Frasers Centrepoint Trust (Annualized return: +10.1%)
  • CDL Hospitality Trust (Annualized return: +10.2%)
  • Ascott REIT (Annualized return: +10.3%)
  • Ascendas REIT (Annualized return: +11.1%)

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