Imagine receiving consistent dividends payout month after month. The best part is you may also potentially receive increasing dividends every year (just like your salary increment). You can use the dividends to slowly build up your retirement portfolio, or you use that for a holiday trip.
Now, the most important question is how do we pick REITs that generate consistent dividend payout. One of the main criteria that we always look at is the distribution per unit (DPU) growth. While there is no guarantee that REITs that have been paying growing dividends, will always continue to do so, but the consistent historical results would increase our odds in picking the gems.
And this is how we manage to pick REITs that generate good yields and outperform the market in the long run. Click here for more details on how we outperformed the market by more than 2 times last years!
Here are the top 4 REITs that have been growing their dividends in the past five years, alternatively you also access the full list of Singapore REITs here:
1. Parkway Life REIT (SGX: C2PU)
Parkway Life REIT is a healthcare REIT that owns a portfolio of income-generating healthcare properties in Singapore, Japan and Malaysia. The total assets amounted to $1.96 billion. It is a very defensive REIT, of which most of its tenancy agreements come with an in-built annual rental escalation.
Parkway Life REIT's Price and DPU Trend
Annualised 5-year dividend growth: 6.2%
2. Mapletree Commercial Trust (SGX: N2IU)
Mapletree Commercial Trust is a retail REIT that owns a portfolio of income-generating shopping malls in Singapore. The total assets amounted to $7 billion. Its core asset, Vivocity is strategically located, which attracts more than 55 millions of both local and foreign visitors every year. The occupancy rate of the mall has been almost full since its opening.
Mapletree Commercial Trust's Price and DPU Trend
Annualised 5-year dividend growth: 3.8%
3. Ascendas REIT (SGX: A17U)
Ascendas REIT is an industrial REIT that owns a portfolio of income-generating industrial properties in Singapore, Australia, UK and US. The total assets amounted to $12 billion, it is one of the biggest REIT listed in Singapore. Its recent venture into the high-tech business park would potentially help the REIT to continue growing its DPUs. With a well-diversified portfolio, it is would be suitable for conservative investors who look for stable dividends.
Ascendas REIT's Price and DPU Trend
Annualised 5-year dividend growth: 2.4%
4. Capitaland Mall Trust (SGX: C38U)
Capitaland Mall Trust is a retail REIT that owns 15 income-generating retail shopping malls in Singapore. The total assets amounted to $7 billion, it is the biggest retail REIT listed in Singapore. The REIT manager has a strong track record on implementing yield-accretive asset enhancement strategy. With more than 300 millions shoppers every year, Capitaland Mall Trust has been growing its dividend payout since its IPO in 2002.
Capitaland Mall Trust's Price and DPU Trend
Annualised 5-year dividend growth: 1.8%
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