REITs (Large Cap)

REITs (Large Cap)

At a glance

Real estate investment trusts (REITs) own and operate income-generating real estate assets such as retail malls, office buildings, industrial parks and hotels.

Investors in REITs can gain exposure to these properties with a relatively small amount of capital required.

Risks

  • Capital and distributions not guaranteed: Distributions are not guaranteed and are subject to fluctuations in the REIT’s income.
  • Interest rate risk: REITs tend to have large borrowings to fund the purchase of assets. If interest rates increase sharply, the interest expense of REITs may also rise, thus impacting their income and distributions.
  • Refinancing risk: REITs may not have the ability to repay loans when they are due after distributing a significant portion of their income to unit holders.
  • Tenant risk: As REITs depend on rental income from tenants, any financial difficulties faced by their tenants may negatively impact their revenue.
  • Asset value risk: The value of the real estate assets may fall with a downturn in the property market.

Dividend yield

Based on consensus estimate of forward dividend yield as of 25 Apr 2024. Distributions are not guaranteed and are dependent on the performance of the REIT and discretion of the Manager, amongst other factors.

REIT Forward div yield
Mapletree Pan Asia Commercial Trust 7.03%
Frasers Logistics & Commercial Trust 6.93%
Mapletree Logistics Trust 6.62%
Mapletree Industrial Trust 5.68%
CICT: CapitaLand Integrated Commercial Trust 5.58%
Keppel DC REIT 5.26%

Useful resources