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5 Singapore Industrial REITs for your portfolio and where does Mapletree Industrial REIT (MIT) rank

Readers who have bookmarked my Dividend Stock Tracker, would have note that I categorize the REITs into the nature of the REITs.

One category that is getting attention recently have been the Industrial REITs due to the IPO of Mapletree Industrial REIT.

The question many are asking is how does this new REIT rank among its peers.

In my opinion we can categorize the industrial reits into 2 categories:

  1. Large Capitalization, Strong Sponsers, High NAV, Low Yielders
  2. Smaller Capitalization, Discounted NAV, High Yielders

Large Capitalization, Strong Sponsers, High NAV, Low Yielders

These REITs seems to behave similarily on the SGX. They are make up by former assets in large parent sponsers and have the backing of these sponsers, so they have the first right of refusal on assets.

Since they are larger capitalized, institutional investor take notice of them and they are likely to trade higher to their peers in the other categories and their prices are closer to NAV or even trading above their NAV.

Strong sponsers would enable them to steer better during recession or times where credit is tight.

Ascendas REIT

The first industrial REIT to be listed here and probably the largest in Singapore. Considered a mature REIT that doesn’t add much yield accretive assets any more and is backed by parent Ascendas.

Having Ascendas REIT in your portfolio provides stable yield vs your other growth plays and you will also be able to tap funds flow into the Singapore market when there is a rise in liquidity tides

Ascendas REIT current yield is 5.1% and trading at a premium to book value. Debt to Assets is average.

Mapletree Logistics REIT

Spin off by sponsers Mapletree investments, this is a large logistic REIT with vast assets in Singapore and Japan in particular.

Its strategy have been in acquiring overseas assets in Japan for example that are more yield accretive.

Mapletree Logistics REIT current yield is 6.4% and trading at 0.7 times PTB and Debt to Assets is 32%.

Mapletree Industrial REIT

The latest IPO darling is smaller than its peers above but nevertheless has a strong sponser to tap.

Management have indicated that they will not be acquiring anything soon.

Mapletree Industrial REIT current yield is likely to be around 7.6% – 8% and trading at a premium to book value. Debt to assets eventually should be higher than 35%, indicating difficulty to leverage up further.

Smaller Capitalization, Discounted NAV, High Yielders

These are the “forgotten childs” or REITS that do not have a strong sponsers. This and the fact that they are smaller makes them less viable candidates for overseas funds.

Weak sponsers also make them trade at a higher yield, indicating greater risks vs their peers and they may find difficulties when they come to finding tenants, re-financing debts and finding new yield accretive assets.

AIMS AMP Capital

Formerly known as MacArthurCook Industrial, this Australian linked REIT have much turbulence during the credit crisis in 2007-2008 where they have problems re-financing their loans.

Very much indicate the problem of smaller REITs and thus yield and market valuation is reflective of this risk vs its larger peers.

AIMS AMP Capital current yield is 9.2% and trading at 0.7 times book value and debt to assets is 25%.

Cambridge Industrial Trust

Probably the first independent REIT which seems to not work so well in Singapore environment. Like AIMS, had issues refinancing during the credit crisis but manage to steadied its ship.

Cambridge Industrial current yield is 9.4% and trading at 0.7 times book value.

Cache Logistics Trust

A recently listed logistics trust that has a sponser in CWT a local strong logistics player. Its tenant based are multi-national companies indicating risks but as long as Singapore remains an important transportation hub in the global economy, these companies are likely to stay as long tenants.

Cache Logistics Trust current yield is 7.9% and its debt to assets is 28%.

Disclosure: Vested in AIMS AMP Capital and Cache Logistics Trust.

I run a free Singapore Dividend Stock Tracker available for everyone’s perusal. It  contains Singapore’s top dividend stocks both blue chip and high yield stock that are great for high yield investing. Do follow my Dividend Stock Tracker which is updated nightly  here.


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Monday 25th of October 2010

Thank you so much... Anyway, thanks a lot for running the Dividend Tracker. It is really very useful.


Monday 25th of October 2010

no problem. just hope i can get it up soon.


Monday 25th of October 2010

little digression from the topic, Drizzt, may I know how you calculate your payout ratio for your Div Tracker?

I'm presuming it's the dividends payout ratio right?


Monday 25th of October 2010

hi yyt, the payout ratio is actually based on payout out of cashflow. the normal payout ratio is based on earnings per share. i feel for dividend stocks that is a better reflection don't you think?


Friday 22nd of October 2010

Can you consider adding CACHE into your dividend tracker? Also, would it be too much to ask for the tracker to display Gearing column?


Friday 22nd of October 2010

i also have to optimize the columns so i am not sure if i could include gearing. but if you click on the stock name you can see its debt levels inside.


Friday 22nd of October 2010

hi geemoz, i will add Cache log when i have enough data. dun worry since i am vested in Cache Log. 7.9% prevailing yield with 28% gearing.


Wednesday 20th of October 2010

I don't quite understand what you are getting at but its gearing level has definitely gone up and the DPU has gone down from 0.54c to 0.52c, post rights.

So, price for price, the yield has gone down but for those who had the units when the REIT went CR, the average yield on their holdings actually went up if they paid for the heavily discounted rights.

Having said this, a DPU of 0.52c per quarter is still more than decent for someone who is considering buying into the REIT now. :)

On another matter, I attended Saizen REIT's AGM and I am very much encouraged. Maybe, you would like to consider this too? ;)


Wednesday 20th of October 2010

well i didn't get any MIT rights but not feeling for myself now, yet.


Tuesday 19th of October 2010

AIMS AMP Capital Industrial REIT:

XR DPU of 2.08c. Yield is 9.45% at the price of 22c. XR gearing level is 34.8%. Interest cover ratio of 4.21x. Very comfortable set of numbers. :)

Gearing went up because: "The Manager intends to pay S$161.5 million (the Total Acquisition Cost less the Acquisition Fee which is payable in Units) of the cost of the Acquisition in cash from a combination of debt financing and net proceeds from the Rights Issue (as defined herein)."$file/AIMSAMPIREIT_Project_Durian_Launch_Announcement_Final.pdf?openelement


Tuesday 19th of October 2010

Again i dun see it jacking up my yield on cost much if i get it ex rights. i see it that i take on more debt yet the leverage factor is not there. what do you think?

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