REITs have always been a favourite investment choice for risk-averse investors because of their stable earnings quality. Moreover, the better ones can consistently grow their earnings, as well as distribution per unit (DPU), over time. Let’s take a look at three REITs that have grown their DPU in 2018. REIT No. 1 We’ll start with CapitaLand Mall Trust (SGX: C38U), or CMT, a REIT with 15 properties located in the suburban areas and the downtown core of Singapore, including Tampines Mall, Junction 8, Funan, IMM Building, Plaza Singapura, Bugis Junction, and others. For the year ended 31 December 2018, CMT grew its DPU by 3.0% year on year to 11.5 Singapore cents. The higher DPU came as a result of higher net property income. For 2018, CMT reported that gross revenue was up 2.2%

The current earnings season is winding down, and I’ve been watching as companies and real estate investment trusts (REITs) report their full-year 2018 results. Today, I’m looking at two REITs that produced good results. First up is CapitaLand Mall Trust (SGX: C38U). The REIT currently has 15 shopping malls that are mostly located in the suburban areas and downtown core of Singapore. The malls include Tampines Mall, Junction 8, Funan, IMM Building, Plaza Singapura, and Bugis Junction. For 2018, CapitaLand Mall Trust reported that gross revenue was up 2.2% to S$697.5 million and net property income (NPI) grew 3.2% to S$125.7 million. The improvement in gross revenue and NPI was driven by two factors: (1) The November 2018 acquisition of the remaining 70% stake in Westgate th

After steadily raising interest rates for the past 2 years, the Fed is indicating that it could take a pause from more interest rate hikes. The officials are signalling that they will wait and monitor the market before deciding whether the economy is strong enough for another rate hike. With interest rate risk deflating and the flight to safety trend, most S-REITs are showing significant positive return over end-2018 share price. KGI notes that this will continue to be the dominant trend moving forward. As such, despite recent capital gains, KGI believes that the current valuation of S-REITs is still moderately attractive for investors to enter into S-REIT investments. KGI: Ranking S-REITs On 4 Investment Criteria To help investors decipher which S-REITs to invest in, KGI categorised the S

Technical Analysis of FTSE ST REIT Index (FSTAS8670) FTSE ST Real Estate Investment Trusts (FTSE ST REIT Index) continued the bullish rally raising from 832.03 to 842.91 (+1.31%) as compared to last post on Singapore REIT Fundamental Comparison Table on Feb 4, 2019. The REIT index retraced and successfully tested the 820 resistance-turned-support to continue the uptrend. In addition, this bullish uptrend is supported by a strong volume.   Based on the current chart pattern and trend analysis, the trend for Singapore REIT direction is UP!  There is a chance for Singapore REIT index to test the immediate resistance at about 875 (the previous high in 2018) based on current market sentiment and bullish momentum. This represents another 4% upside potential from current level before t

The US Federal Reserve has indicated that 2019 will likely see slower interest rate hikes. This comes on the back of mounting macroeconomic uncertainties, that has seen investors turn to less risky investments. This may benefit REITs in three ways: # 1 Traditionally, REITs take on a lot of debt to fund its capital-intensive property investments. Slower interest rate hikes in 2019 will ease the growing pressure on REITs, in terms of debt repayment. # 2 Markets are efficient – which means that prices of REITs would have taken into consideration that rate hikes would continue as normal. This stance of slowing down the interest rate hikes in 2019 is new information for the market, and may give REITs a boost. (Do note that most of this new information should already be priced into the markets

Last week, Jardine Strategic Holdings Limited (SGX: J37) reported its 2018 full year (FY18) result. As a quick introduction, Jardine Strategic is a conglomerate with interest in the web of Jardines companies which include Jardine Cycle & Carriage Ltd (SGX: C07), Hongkong Land Holdings Limited (SGX: H78), Dairy Farm International Holdings Ltd (SGX: D01) and Jardine Matheson Holdings Limited (SGX: J336). Here, we will look at 10 things that investors should know from its latest earnings update. FY18 revenue increased 11% year on year to US$34.1 billion. Underlying full-year operating profit (excluding non-trading items) jumped 27% year on year to US$3.7 billion. Underlying full year profit attributable to shareholders improved 14% year on year to US$1.8 billion. Similarly, underlyi

Keppel DC REIT (SGX: AJBU) is a real estate investment trust involved in data centres. Listed in December 2014, the REIT manages 15 data centres in Asia and Europe. There are two things shareholders and potential investors should know about the REIT right now: its latest financial performance and valuation. Financial performance First, a look at the numbers for the fourth quarter of the fiscal year ended 31 December 2018 (FY 2018). Source: Keppel DC REIT Result Presentation Keppel DC REIT delivered a positive quarter, with all metrics coming in stronger on a year-on-year basis. The growth in net property income (NPI) was mainly due to contributions from new acquisitions in 2018, as well as higher contributions from some existing assets. As of 31 December 2018, the REIT’s gearing and oc

Technical Analysis of FTSE ST REIT Index (FSTAS8670) FTSE ST Real Estate Investment Trusts (FTSE ST REIT Index) had a huge rally last month from 777.45  to 832.03 (+7.00%) as compared to last post on Singapore REIT Fundamental Comparison Table on Jan 1, 2019. The REIT index broke out from an down trend channel and critical resistance at 800, and reversed to an uptrend with spike in volume just in 1 month! This bull’s move was fast and furious! Most investors were not able to capture this large bullish move if they were not watching the stock market every day. Based on the current chart pattern and trend analysis, the trend for Singapore REIT direction is UP!  There is a chance for Singapore REIT index to test the immediate resistance at about 875 (the previous high in 2018) b

https://www.fool.sg/2019/01/26/the-weekly-nibble-best-dividend-shares/https://www.fool.sg/2019/01/23/mapletree-industrial-trusts-latest-earnings-update-distribution-per-unit-grew-6-6/https://www.fool.sg/2019/01/23/keppel-dc-reit-fy-2018-earnings-steady-growth-with-a-resilient-portfolio/https://www.fool.sg/2019/01/23/latest-earnings-from-keppel-infrastructure-trust-steady-as-she-goes/https://www.fool.sg/2019/01/22/2-singapore-reits-i-am-watching-this-week/Real estate investment trusts (REITs) and business trusts are popular among investors as they pay out regular distributions, usually on a quarterly basis. On that note, there are three REITs and business trusts going ex-dividend tomorrow. In other words, you need to own them before that day in order to receive their distributions. Let’s

Keppel DC REIT (“Keppel DCR”) (SGX: AJBU) released its full-year 2018 earnings yesterday on 22 January 2019. The REIT has Keppel Corporation Limited (SGX: BN4) as a sponsor, and owns 15 properties across eight countries with AUM at S$2 billion as at December 31, 2018. Here are the 10 key points from its earnings release and presentation slides:- 1. Gross revenue for 2018 fourth-quarter rose by 30.5% to S$48 million, up from S$36.8 million a year ago. Growth came from acquisitions in Singapore, Australia, Germany and Ireland. Property expenses rose at a slightly higher clip of 33.4%, resulting in net property income (“NPI”) rising by 30.1% to S$42.5 million. 2. Distribution income and distribution per unit (“DPU”) for the reporting quarter rose by 29% an

The latest earnings season has started.  Within the next five days, no fewer than 16 real estate investment trusts (REITs) or stapled trusts will be giving quarterly updates. There are two REITs, in particular, that investors should be keeping a close eye on. They are Keppel DC REIT (SGX: AJBU) and CapitaLand Mall Trust (SGX: C38U). The rising need for data centres Can Keppel DC REIT end 2018 as impressively as it started it? In the first nine months of 2018, the trust reported distribution per unit (DPU) growth of 4.8%. More pertinently, DPU growth accelerated to 6.3% in the third quarter of the year. The data centre industry has benefited from strong sector tailwinds as more firms are choosing to outsource data centres, rather than own them. The growing digital space and cloud adoption

It is essential for investors to know what a particular company does and how it makes money before investing in it. Investing in businesses without such knowledge is akin to speculation. On that note, let’s check out what business Keppel Corporation Limited (SGX: BN4) is involved in and how it generates revenue. As a quick introduction, Keppel is a conglomerate with four main business divisions, namely, Offshore & Marine, Property, Infrastructure, and Investments. Let’s look at Keppel’s segment revenue for the financial year ended 31 December 2017 below:Source: Keppel Corporation Limited 2017 annual report The Offshore & Marine division brought in around 30% of total revenue in 2017. The main activities of this segment are offshore rig design, construction and repair, ship re

Technical Analysis of FTSE ST REIT Index (FSTAS8670) FTSE ST Real Estate Investment Trusts (FTSE ST REIT Index) decreased from 783.05  to 777.45 (-0.72%) as compared to last post on Singapore REIT Fundamental Comparison Table on Dec 3, 2018. Currently the index is trading in a down trend channel and testing a Resistance Turned Support at about 774. If this support holds, the REIT index will be moving side way in a consolidation range. Based on the current chart pattern and trend analysis, the trend for Singapore REIT direction SIDE WAY to DOWN! The REIT index will be capped by the immediate resistance at about 800 which is the 200D SMA resistance and also the round number.   Fundamental Analysis of 39 Singapore REITs The following is the compilation of 39 REITs in Singapore a

Growth in dividend yield is one of the things that resonates with most REIT investors. In order to grow dividend yield, REITs either have to drive positive rental reversion or acquire new yield-accretive properties. Among the S-REITs, there are three REITs that have been identified by market analysts to be in a leading position to grow inorganically. According to CIMB and UOBKH, these three REITs have been building a good debt headroom to allow themselves to pursue acquisition growth opportunities going forward. Investors Takeaway: 3 REITs With Yield-Accretive Acquisition Potential For Growth FIRST REIT First REIT reported 3Q18 gross revenue growth of 5.1 percent year-on-year while net property income grew 5.4 percent year-on-year. The growth is largely due to contributions from Siloam

Some real estate investment trusts (REITs) in Singapore’s stock market have been heavily sold down this year. Concerns over interest rate hikes, the US-China trade situation, and volatile emerging market currencies have been some of the main reasons for the steep sell-off. But, lower prices are actually good news for long-term investors. Depressed prices translate to higher distribution yields, and could represent great buying opportunities. With that said, here are three REITs on my Christmas wish list. A healthy REIT First Real Estate Investment Trust (SGX: AW9U) is a healthcare REIT that owns hospitals and nursing homes, mostly in Indonesia. Last month, the REIT made headlines as its unit price crashed by more than 15% within two trading days. One of the reasons for the sharp

Technical Analysis of FTSE ST REIT Index (FSTAS8670) FTSE ST Real Estate Investment Trusts (FTSE ST REIT Index) increased from 767.98  to 783.05 (+1.96%) as compared to last post on Singapore REIT Fundamental Comparison Table on Nov 5, 2018. Currently the index is trading in a down trend channel after finding a short term support around 760. This support was tested on 4 occasions since mid Oct. Currently the REIT index moves above the 20D and 50D SMA indicates short term bullishness. There may be a chance the REIT index enters into side way consolidation mode based on chart pattern. Based on the current chart pattern and trend analysis, the trend for Singapore REIT direction SIDE WAY to DOWN! The REIT index will be capped by the immediate resistance at about 800 which is the 200D SM

Against the backdrop of a rising interest rate environment, REITs seem to be one of the obvious losers. This is because REITs are asset-heavy investments that require high levels of leverage, borrowing substantial amounts of money to purchase properties that they subsequently rent out. Read Also: Increasing Interest Rates In 2018: Here Are 4 Ways Singaporeans Will Be Affected In Singapore, there are currently 39 listed REITs and a further nine business trusts (of which six are property related). On average, they have a debt to asset ratio of just under 35%. With rising interest rates, REITs will have to fork out more in interest payment, potentially reducing the distributions they can pay to investors. How REITs Have Performed In YTD 2018 To gauge the performance of REITs in 2018, we can l

1. SPH Reit  --  11th Oct 20182. Keppel Reit  --  15th Oct 20183. Keppel DC Reit  --  16th Oct 20184. Kep Infra Trust  --  16th Oct 20185. First Reit  --  16th Oct 20186. Kep-KBS US Reit  --  17th Oct 20187. Kep T&T  --  17th Oct 20188. Kep Corp  --  18th Oct 20189. FrasersCom Trust  --  19th Oct 201810. SGX  --  19th Oct 201811. Mapletreelog Trust  --  22nd Oct 201812. MapletreeInd Trust  --  23rd Oct 201813. Frasers Cpt Trust  --  24th Oct 201814. MapletreeCom Trust  --  24th Oct 201815. Suntec Reit  --  24th Oct 201816. M1  --  24th Oct201817. Semb Mar  --  25th Oct 201818. Parkway Life  --  25th Oct 20181