Evergreen SREITS

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We saw quite a few mergers of SREITS in the past couple of years. There are now 39 SREITS listed in SGX, down from 44 in 2022.

It may shock you that of these 39 SREITS, only 10 are now above their IPO price. Note that this does not take into account of the dividends received.

  1. ParkwayLife Reit
  2. Mapletree Ind Tr
  3. Mapletree Log Tr
  4. Mapletree PanAsia Com Tr
  5. Capitaland Int Com Tr
  6. Capitaland Ascendas Reit
  7. Keppel DC Reit
  8. Frasers Centrepoint Tr
  9. Frasers Log & Com Tr
  10. CDL HTrust

The other 29 SREITS are still underwater! This is another reason to be very careful when subscribing to IPOs.

Most of the recent SREIT IPOs in the past 5 years have performed negatively. Even if we are to take into account of all the dividends received through all the years since their ipo, these 15 SREITS that are still underwater even with all the dividends and right corporate actions included.

  1. ARA HTrust
  2. Eagle HTr
  3. BHG Retail Reit
  4. Leadlease Reit
  5. Cromwell Reit
  6. Daiwa House Log Reit
  7. Digicore Reit USD
  8. EC World Reit
  9. OUE Com REIT
  10. Elite Com Reit GBP
  11. Keppel Pac Oak Reit USD
  12. US Manulife USD
  13. Prime US Reit USD
  14. First Reit
  15. Lippo Malls Tr

What can we infer from the above reits?

1. Invest only in REITS with a strong sponsor

It imperative that the REIT that we invest in has a strong and trustworthy sponsor. And there are no strong sponsor than the government linked Mapletree and Capitaland.

2. Avoid SREITS whose property assets are mainly overseas

Most of the REITS that performed poorly have assets  that are mostly overseas. For me, at least 50% should be Singapore assets.

3. REITS with strong track record of increasing DPU have performed well

The reit manager with the track record delivering rising DPU over the long term is in my humble opinion the single most important criteria to decide which REIT to invest for dividends for the long term. Below is a chart of the DPU of Mapletree Ind Tr over the last 10 years.

  • I'm a remisier with Maybank Securities, and as a bonds and REITs investor myself, I guide my clients to build resilient bonds and REITs portfolios. If you like to be guided, please open a trading account to become my client; It's free!