CapitaLand Ascott Trust divests Japan asset: REITs Weekly Watch

What happened?

An index of Singapore REITs fell in the past week, as government bond yields moved higher on strong US economic data. Investors moderated their expectations of sharp interest rate cuts by the US Federal Reserve following stronger than expected inflation data. 

The CSOP iEdge S-REIT Leaders Index ETF closed at S$0.801, losing 2.4% from its close in the previous week of $0.82.

REITs with US exposure rebounded slightly after a sharp sell-off in the previous weeks, while resilient economic data eased concerns about US commercial property. 

On the other hand, REITs with China exposure saw profit-taking, after China's economic planning agency disappointed investors with a lack of fresh stimulus measures at its press conference this week. 

Singapore REITs Top Performers

• Sabana Industrial REIT
• Manulife US REIT
• Keppel DC REIT
• Keppel Pacific Oak US REIT
• Prime US REIT

Singapore REITs Worst Performers

• CapitaLand China Trust
• Elite UK REIT
• Mapletree Panasia Commercial Trust
• Suntec REIT
• Frasers Hospitality Trust

Check out our Singapore REIT screener to discover the best REIT for your portfolio.

REIT news of the week

• Capitaland Ascott Trust divests Citadines Karasuma-Gojo Kyoto in Japan for JPY6.18 billion, at 40.1% above book and an exit EBITDA yield of about 0.3%. It will book net disposal gain of S$8.0 million.
• ESR-Logos REIT launches a preferential offering of 4 for 100 units at S$0.305, above the last close of S$0.275, to raise S$94 million. ESR Group Ltd undertakes to subscribe up to S$88.2 million, and Ivanhoe Cambridge Asia will be issued up to S$5.8 million of consideration units.
• Digital Core REIT secured US$716 million of loan facilities to refinance existing debts and for working capital. This pushes out the debt maturity out to mature in 2029/2030.
• Frasers Hospitality Trust no longer qualify as a withholding managed investment trust status in Australia after TCC Assets raised its effective stake to more than 10%. This would imply pro-forma decline in FY23 distributable income of S$1.3 million or 2.5%, and net asset value of S$22 million or 1.7%. Distributions will be subjected to withholding tax of 37.5%, from current 15%. 

The Big Important Story 

3 Singapore REITs with dividend yields above 6%. Are they a good buy?

These three Singapore REITs boast strong sponsors and an attractive distribution yield.

Broker reports on Singapore REITs

• CapitaLand Ascott Trust – Unlocks value with sale of Japan property by DBS
• Equity Picks: Remove Frasers Logistics & Commercial Trust from Dividend by DBS

Blog Posts on Singapore REITs 

• REITs That Pay The Highest Dividends In October 2024 by My Sweet Retirement
• Mapletree Industrial Trust - Strong Growth Ahead by Wealth Insights
• Is It Time To Buy China Focused REITs? by Consulting Dan
• Interest Rate Cut: 4 Singapore REITs That Could Report Higher Distributions by The Smart Investor
• The Essentials of Keppel Pacific Oak US REIT You Need to Know by The Singaporean Investor
• My Stock Pick- Should One Still Invest in REITs and Other Dividend Stocks in Current Market Climate? by Investment Income for Life
• Trouble Brewing for Mapletree Logistics Trust: Can the Logistics REIT See its DPU Recover? by The Smart Investor
• Is Starhill Global REIT A Good Buy? [Fundamental Analysis] by Consulting Dan
• S-REITs Properties Map - Singapore Retail Properties by REIT-TIREMENT
• S-REITs Properties Map - Singapore Healthcare & Hospitality Properties by REIT-TIREMENT

Credit to Vince from REIT-Tirement for compiling Singapore REIT blog posts and videos

 Videos on Singapore REITs 

• REITs: Professional Insights on Investment Metrics and Valuation by The Edge Singapore
• REITS vs Bank & AK's Take by The Fifth Person (Review) by Iggy the Investing Iguana
• Why Would I Even Hold Lendlease #reit ? Am I Missing Something? by Heah Min An
• Million-Dollar HDBs and REITS by Iggy the Investing Iguana
• I’m Buying this WORST performing REIT Before it Catches Up with the RALLY! by The Dividend Uncle
• AIMS APAC REIT 1QFY2025 Business Update by ProsperUs
• REITs DOWN on Slowing Interest Rate Cuts: What I’m Doing Right Now by The Dividend Uncle

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