4 Singapore REITs with higher dividend yields than CPF OA’s 2.5%

SINGAPORE: Singapore’s Central Provident Fund (CPF) offers a steady avenue for Singaporeans to secure their retirement nest eggs.

However, as the CPF Ordinary Account (OA) fetches an interest rate of just 2.5% per annum, some investors are exploring alternative avenues to boost their returns.

If you are one of them, here are four Singapore REITs with dividend yields higher than your CPF OA’s 2.5% p.a. interest rate, according to The Smart Investor.

1. Mapletree Logistics Trust

Mapletree Logistics Trust, or MLT, boasts a diverse portfolio spanning 187 properties across eight countries, with assets under management (AUM) hitting S$13.3 billion by the end of 2023.

Despite a mixed financial performance, MLT increased its distribution per unit (DPU) by 0.7% year over year, offering investors a prospective distribution yield of 6.2%.

MLT remains an attractive option for investors seeking stable returns. Its portfolio occupancy rate is 95.9%, and it has positive rental reversion.

2. CapitaLand Integrated Commercial Trust

CapitaLand Integrated Commercial Trust, or CICT, holds a diverse portfolio of 21 properties in Singapore, two in Germany, and three in Australia. By the end of 2023, its total AUM will reach S$24.5 billion.

Despite economic uncertainties, CICT delivered a commendable financial performance in 2023, with higher revenue and DPU.

With a trailing distribution yield of 5.6% and a strongly committed portfolio occupancy of 97.3%, CICT is a promising choice for investors looking for stability and growth.

3. Parkway Life REIT

Parkway Life REIT, a healthcare-focused trust, holds a portfolio of 63 properties, including hospitals in Singapore, nursing homes in Japan, and specialist clinics in Malaysia, valued at approximately S$2.23 billion.

With a track record of consistent revenue and DPU growth, Parkway Life REIT offers investors a trailing distribution yield of 4.2%.

With plans to enhance its portfolio and maintain its yield-accretive strategy, Parkway Life REIT remains poised for continued growth in the healthcare sector.

4. Frasers Centrepoint Trust

Frasers Centrepoint Trust, or FCT, manages a portfolio of 10 retail and suburban malls and an office building valued at around S$6.9 billion.

Despite a slight dip in DPU, FCT maintains an attractive trailing distribution yield of 5.6%.

With strong operating metrics, including a committed portfolio occupancy of 99.9% and increased tenant sales, FCT offers investors stability in the retail sector.

As always, conduct your own research and consider your investment goals and risk tolerance before making investment decisions. /TISG

Read also: 4 Singapore stocks to keep an eye on this March

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