Best REITs to Buy in January

Best REITs to Buy in 2024

Best REITs to Buy in 2024

Today is the first day of the brand new year 2024. What are the best REITs to buy in 2024? The Federal Reserve announced that it will hold its key interest rates steady in their previous December 2023 meeting. With the inflation rate easing and the economy holding in, there may be potential interest rate cuts in this year 2024.

Interest rate cuts will benefit REITs which has been badly beaten down last year due to several hikes. A cut in interest rate reduces financial related costs for the REITs.

On the other hand, interest rate cuts can mean lower interest rates for fixed deposits, Singapore Saving Bonds and Treasury Bills. If you have been investing in the above conservative low risk financial products, perhaps in 2024, you should consider REITs where dividend yields are higher?

I use Stocks Café Stock Screener to screen for a list of REITs that meet my predefined criteria so that I have a shorter list of REITs to analyse.

Below are the criteria that I used to screen for dividend stocks. You can adjust them to fit your risk appetite.

  • Current Yield (%) >= 5 and <= 10
  • Price / Earnings <=20
  • Price / Book <= 3
  • Market Capitalization >= 1B

It is important for you to know that you should not buy the stock solely based on the current dividend yield. The screening results only provide you a shorter list to analyse further.

With the shorter list of REITs, I will then drill in further into each of them to analyse if they are worthy to add into my stock portfolio.

Best REITs to Buy in 2024

CapitaLand China Trust (SGX:AU8U)
Current Dividend Yield: 7.68%
Price to Equity: 16.146
Price to Book: 0.649
Market Capitalization: SGD 1.6B

OUE Commercial Reit (SGX:TS0U)
Current Dividend Yield: 7.33%
Price to Equity: 5.962
Price to Book: 0.486
Market Capitalization: SGD 1.6B

Lendlease Reit (SGX:JYEU)
Current Dividend Yield: 7.28%
Price to Equity: 14.794
Price to Book: 0.67
Market Capitalization: SGD 1.5B

CapitaLand India Trust (SGX:CY6U)
Current Dividend Yield: 6.38%
Price to Equity: 11.584
Price to Book: 1.16
Market Capitalization: SGD 1.5B

Keppel Reit (SGX:K71U)
Current Dividend Yield: 6.29%
Price to Equity: 12.361
Price to Book: 0.661
Market Capitalization: SGD 3.5B

Suntec Reit (SGX:T82U)
Current Dividend Yield: 5.90%
Price to Equity: 13.717
Price to Book: 0.549
Market Capitalization: SGD 3.6B

CapitaLand Ascott Trust (SGX:HMN)
Current Dividend Yield: 5.79%
Price to Equity: 13.963
Price to Book: 0.85
Market Capitalization: SGD 3.7B

CDL Hospitality Trust (SGX:J85)
Current Dividend Yield: 5.50%
Price to Equity: 7.175
Price to Book: 0.787
Market Capitalization: SGD 1.4B

Far East Hospitality Trust (SGX:Q5T)
Current Dividend Yield: 5.49%
Price to Equity: 7.669
Price to Book: 0.734
Market Capitalization: SGD 1.3B

Frasers Centerpoint Trust (SGX:J69U)
Current Dividend Yield: 5.38%
Price to Equity: 18.196
Price to Book: 0.974
Market Capitalization: SGD 3.9B

Keppel Data Centre Reit (SGX:AJBU)
Current Dividend Yield: 5.24%
Price to Equity: 15.306
Price to Book: 1.221
Market Capitalization: SGD 3.4B

Mapletree Logistics Trust (SGX:M44U)
Current Dividend Yield: 5.19%
Price to Equity: 15.662
Price to Book: 1.139
Market Capitalization: SGD 8.7B

CapitaLand Integrated Commercial Trust (SGX:C38U)
Current Dividend Yield: 5.17%
Price to Equity: 19.6
Price to Book: 0.881
Market Capitalization: SGD 13.7B

CapitaLand Ascendas REIT (SGX:A17U)
Current Dividend Yield: 5.16%
Price to Equity: 17.768
Price to Book: 1.17
Market Capitalization: SGD 13.3B

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