Highest Yielding REITs in April 2023

Best REITs to Buy in February 2024

Best REITs to Buy in February 2024

After Chinese New Year, let us start looking for the Best REITs to Buy in February 2024! In January, Federal Reserve Chair Jerome Powell indicated that the central bank is unlikely to start cutting interest rates in March. Investors mulled over Powell’s comments and stocks started to fall.

What does this mean for Singapore REITs? This means high finance costs will continue to erode distributable income and Distribution Per Unit (DPU). If you have noticed, most REITs that have reported their latest financial results had highlighted about higher finance costs impacting their DPU. This is because when their current debt are due, REITs are forced to refinance at the current higher fixed interest rates.

Investors are expecting that the Fed will begin easing back rates in May or June. My opinion is that the Fed will ease interest rates as it is not possible to sustain at such high levels forever because it will impact the economy and even cause a recession if high interest rates environment remains forever. But of course, the interest rate cuts may be in the mid of this year or maybe end of the year and even delayed till next year. All the prediction of the time frame is just guessing until the Fed confirm it.

In the meantime, while REITs are depressed, we should keep calm and continue to accumulate quality REITs as their share prices will bounce back when the Fed announce rate cuts.

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 February 2024

CapitaLand China Trust (SGX:AU8U)
Current Dividend Yield: 8.81%
Price to Equity: 13.887
Price to Book: 0.552
Market Capitalization: SGD 1.3B

OUE REIT (SGX:TS0U)
Current Dividend Yield: 7.89%
Price to Equity: 5.564
Price to Book: 0.452
Market Capitalization: SGD 1.5B

AIMS APAC Reit (SGX:O5RU)
Current Dividend Yield: 7.65%
Price to Equity: 14.007
Price to Book: 0.696
Market Capitalization: SGD 1B

Lendlease Reit (SGX:JYEU)
Current Dividend Yield: 7.36%
Price to Equity: 19.3
Price to Book: 0.628
Market Capitalization: SGD 1.4B

Frasers Centerpoint Trust (SGX:J69U)
Current Dividend Yield: 7.29%
Price to Equity: 18.136
Price to Book: 1.022
Market Capitalization: SGD 4.1B

CapitaLand Ascott Trust (SGX:HMN)
Current Dividend Yield: 7.03%
Price to Equity: 13.539
Price to Book: 0.806
Market Capitalization: SGD 3.5B

Keppel Reit (SGX:K71U)
Current Dividend Yield: 6.52%
Price to Equity: 11.829
Price to Book: 0.629
Market Capitalization: SGD 3.4B

Suntec Reit (SGX:T82U)
Current Dividend Yield: 6.10%
Price to Equity: 13.034
Price to Book: 0.522
Market Capitalization: SGD 3.4B

Mapletree Logistics Trust (SGX:M44U)
Current Dividend Yield: 6%
Price to Equity: 14.153
Price to Book: 0.998
Market Capitalization: SGD 7.5B

CDL Hospitality Trust (SGX:J85)
Current Dividend Yield: 5.88%
Price to Equity: 6.309
Price to Book: 0.687
Market Capitalization: SGD 1.2B

PARAGON REIT (SGX:SK6U)
Current Dividend Yield: 5.87%
Price to Equity: 17.812
Price to Book: 0.841
Market Capitalization: SGD 2.4B

Far East Hospitality Trust (SGX:Q5T)
Current Dividend Yield: 5.75%
Price to Equity: 7.347
Price to Book: 0.701
Market Capitalization: SGD 1.3B

CapitaLand India Trust (SGX:CY6U)
Current Dividend Yield: 5.71%
Price to Equity: 11.738
Price to Book: 1.171
Market Capitalization: SGD 1.5B

Keppel DC Reit (SGX:AJBU)
Current Dividend Yield: 5.49%
Price to Equity: 12.733
Price to Book: 1.229
Market Capitalization: SGD 2.9B

CapitaLand Integrated Commercial Trust (SGX:C38U)
Current Dividend Yield: 5.43%
Price to Equity: 18.88
Price to Book: 0.934
Market Capitalization: SGD 13.2B

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