3 Singapore REITs Boasting Dividend Yields of 6% and Above

Income investors should be feeling let down by REITs this year. After bottoming out in July 2024, it rebounded strongly to near year high due to expectations that inflation has eased and FED will lower interest rates. Investors who have listened to analysts and bloggers that said it was time to buy REITs is now feeling like a train wreck now. Indeed the FTSE REIT index has dropped from the high in Sep and is now near year lows again. I did wrote in my article before that inflation will remain sticky and that FED will find it difficult to have big cut in interest rates. True enough the 10yr treasury yield has remain stubbornly above 4%. Though REITs will continue to have bumpy road ahead, investors who love REITs can invest in them when time is right. In this article, I highlight 3 Singapore REITs boasting dividend yields of 6% and above that you may add to your watchlist.

Mapletree Logistics Trust

Mapletree Logistics Trust (MLT) has been one of the worst performing REIT this year with share price fallen more than 25% year to date. Investors who love to buy REITs and keep long term for dividend is worse off this year as the dividends collected cannot cover the loss in share price. This is despite that Mapletree Logistics Trust is so called strong sponsor REIT and also a big cap REIT. For 2Q FY24/25, MLT reported gross revenue is down 1.8% to S$183.3 million while net property income is down 2.1% to S$158.6 million. DPU dropped a whopping 10.6% to 2.027 cents. Portfolio occupancy is still healthy at 96.0%. However, average rental reversion is a negative 0.6%. This negative rental reversion is bad for the REIT going forward which means that DPU will remain depressed. Gearing ratio is relatively high at 40.2% with 84% of debts on fixed rates. With DPU of 2.027 cents for 2Q FY24/25 which translate to a dividend yield of 6.4%, MLT is definitely one of the 3 Singapore REITs boasting dividend yields of 6% and above. You can view the REIT website here.  In this article, I have list out 3 Singapore REITs boasting dividend yields of 6% and above. However, investors need to note that as long as the 10 yr treasury yield remains at elevated levels, it is not going to be easy to just buy REITs for income as the capital loss may not cover the dividends collected. 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.