The REIT sector has seen some respite in their share prices for first quarter ended 31 March 2025 with the FTSE REIT index up 1.91%. Will it continue its recovery? I do not think so as stagflation is a real possibility in the US.
As you can see, the FED has cut rates twice last year but the 10 year treasury stays stubbornly above 4%. The debt market as well as the relentless surge in gold price is telling investors that something bad is on the horizon.
However, investors still love REITs and hence in this article, I will talk about 3 Singapore industrial REITs sporting dividend yields of 5% or higher.
AIMS APAC REIT
Aims Apac REIT is one of the few REITs that has provided steady returns to investors. In fact, Aims share price is up 1.6% year to date despite not being a strong sponsor REIT.
In its latest business update for 9M FY2025, Aims reported revenue up 5.7% to S$139.1 million while net property income was up 1.9% to S$99.6 million. DPU for the quarter was 2.4 cents bringing 9M total dividend to 7.07 cents.
Hence, annualized dividend yield will be more than 7%. Portfolio occupancy remained healthy at 94.5% with weighted average lease expiry of 4.7 years. Rental reversion was an awesome positive 21.2%.
Gearing ratio was a healthy 33.7% with average debt to maturity of 3.2 years. 70% of the borrowings are on fixed rates. Hence, given the steady financial performance of Aims Apac REIT and with more than 7% yield, it is definitely one of the 3 Singapore industrial REITs sporting dividend yields of 5% or higher.
You can view the REIT website here.
Mapletree Industrial Trust
Despite being a strong sponsor REIT, Mapletree Industrial Trust share price perform poorly for the first quarter. The share price was down 4.98% year to date.
For 3QFY24/25, MIT reported gross revenue was up 2.0% to S$177.3 million while net property income was up 2.6% to S$133.2 million. DPU for the quarter was up 1.5% to 3.41 cents giving an annualized dividend yield of 6.4%.
Gearing ratio was below 40% with 78.3% of debts on fixed rates. With a dividend yield of more than 6%, MIT could be one of the 3 Singapore industrial REITs sporting dividend yields of 5% or higher. You can view the REIT website here.
Sabana Industrial REIT
Despite its on-going internalisation issues, Sabana share price manage to hold its own with its share price up 2.78% year to date.
For the full ended 31 Dec 2024, Sabana reported gross revenue was up 1.3% to S$113.3 million. Net property income was up 4.5% to S$57.5 million. DPU was up 3.6% to 2.86 cents which translate to a dividend yield of 7.7%.
Gearing ratio was still healthy at 37.4% with average financing cost of 4.42%. Rental reversion was a healthy positive 20.6%. However, portfolio occupancy was a cause of concern at only 85.0%.
With a dividend yield of 7.7%, Sabana is one of the 3 Singapore industrial REITs sporting dividend yields of 5% or higher. You can view the REIT website here.
Disclaimer: Please note that the REITs mentioned in this article are not a financial recommendation to buy and investors need to do their own research and due diligence before investing in any of these REITs.
