SGX report: Strong start in 2015 for Reits

SINGAPORE - Real Estate Investment Trusts (Reits) listed in Singapore have a strong start this year after their robust performance in 2014, according to the latest My Gateway report released by Singapore Exchange (SGX).

The sector - which comprises of 28 Reits and six stapled securities - has generated an average year-to-date total return of 2.4 per cent, following last year's 12.9 per cent. Prices have also gained 2.3 per cent thus far this year, SGX noted.

Reit investors will be able to share the rental income generated by properties on the trust's portfolio. The sector's average dividend yield was 6.4 per cent last year, and the generally stable return has made Reits a favourite asset class among many investors.

The first Reit that went ex-dividend so far this year was SPH Reit, which had a 1.33 cent per unit distribution and went ex-dividend on Jan 16.

Meanwhile, Fortune Reit and CapitaCommercial Trust (CCT) have been the best performers in 2015 so far, both having generated 8.3 per cent in total return in the period.

Fortune Reit, with 18 retail properties in Hong Kong, announced its fourth quarter and full year results on Jan 21. Its net property income was up 6.7 per cent for the quarter to HK$293.5 million, and final distribution per unit (DPU) for the half year was 20.8 HK cents.

CCT, with a $7.4 billion office property portfolio, also announced on Jan 21 a 3.9 per cent rise in full-year DPU to 8.46 cents.