April

Good REITs To Invest In April 2024

Good REITs To Invest In April 2024

What are Good REITs to Invest In April 2024? To identify a good Real Estate Investment Trust (REIT), there are several factors that I think you need to consider. The current factors that I look out for when identifying a good REIT are Market Capitalization, Current Dividend Yield, Price to Book (P/B) and Net Asset Value (NAV).

If you have been following previous posts, I prefer REITs with Market Capitalization of more than SGD 1 billion. This is because I believe companies with a larger capitalization are more resilient and able to withstand an economy downside as compared to companies with smaller capitalization.

While some investors do not use Price to Book (P/E) to evaluate REITs, I used it as a quick glace to identify whether the REIT is overvalued or undervalued. A lower PE ratio may indicate undervaluation while a high PE ratio indicates overvaluation.

In the past I often use Price to Equity (P/E) as one of the mandatory indicators when screening for REITs. I have since moved away from using the P/E ratio as I found that P/E is not a good indicator to evaluate REITs. The Net Asset Value (NAV) will be a more accurate indicator to assess whether the REIT is trading at a discount or premium to its NAV.

Last but not least, as a dividend investor, I will look at the REIT’s current dividend yield. It makes sense to invest in REITs with attractive dividend yields.

How to Find REITs to Buy in Singapore?

If you are not an experienced investor, finding REITs to buy in Singapore may be a dauting task to you. But with many stock screening tools out that, it is not difficult to obtain a shorter list of good REITs to analyse. Stock Screening tools allow you to screen REITs based on specific factors like P/E ratio, dividend yield, and other financial metrics.

For me, 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.

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

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.

Is it a good time to buy REITs in Singapore Right Now?

In my opinion, yes! The share prices of most REITs have been beaten down by the prolonged increase in interest rates where it drove up their financial costs. As a result of higher financial costs, it eats into the REIT’s Distribution Per Unit (DPU).

With the Fed hinting at 3 interest rate cuts this year, the share prices of REITs will rebound. The first interest rate cut may be as early as June 2024 if inflation continue to be under control.

If you want a higher current dividend yield, you should start planning to buy the REITs in your watchlist.

What Are Good REITs To Invest In April 2024?

I want to repeat again that 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.

CapitaLand China Trust (SGX:AU8U)
Market Capitalization: SGD 1.3B
Current Dividend Yield: 9.17%
Price to Equity: 37.401
Price to Book: 0.53
Net Asset Value (NAV): SGD 1.387
Closing Price (28-Mar-24): SGD 0.735

Starhill Global Reit (SGX:P40U)
Market Capitalization: SGD 1.1B
Current Dividend Yield: 7.83%
Price to Equity: 40.92
Price to Book: 0.627
Net Asset Value (NAV): SGD 0.766
Closing Price (28-Mar-24): SGD 0.48

AIMS APAC Reit (SGX:O5RU)
Market Capitalization: SGD 1B
Current Dividend Yield: 7.53%
Price to Equity: 14.23
Price to Book: 0.707
Net Asset Value (NAV): SGD 1.811
Closing Price (28-Mar-24): SGD 1.28

Frasers Centrepoint Trust (SGX:J69U)
Market Capitalization: SGD 4B
Current Dividend Yield: 7.49%
Price to Equity: 17.653
Price to Book: 0.942
Net Asset Value (NAV): SGD 2.326
Closing Price (28-Mar-24): SGD 2.19

Lendlease Reit (SGX:JYEU)
Market Capitalization: SGD 1.4B
Current Dividend Yield: 7.48%
Price to Equity: 18.649
Price to Book: 0.624
Net Asset Value (NAV): SGD 0.94
Closing Price (28-Mar-24): SGD 0.58

OUE REIT (SGX:TS0U)
Market Capitalization: SGD 1.5B
Current Dividend Yield: 7.46%
Price to Equity: 35.082
Price to Book: 0.476
Net Asset Value (NAV): SGD 0.588
Closing Price (28-Mar-24): SGD 0.28

ESR-LOGOS REIT (SGX:J91U)
Market Capitalization: SGD 2.3B
Current Dividend Yield: 7.17%
Price to Equity: 28.623
Price to Book: 0.784
Net Asset Value (NAV): SGD 0.376
Closing Price (28-Mar-24): SGD 0.295

DigiCore Reit USD (SGX:DCRU)
Market Capitalization: SGD 1.1B
Current Dividend Yield: 6.97%
Price to Equity: 73.983
Price to Book: 0.719
Net Asset Value (NAV): SGD 1.128
Closing Price (28-Mar-24): SGD 0.81

CapitaLand Ascott Trust (SGX:HMN)
Market Capitalization: SGD 3.6B
Current Dividend Yield: 6.96%
Price to Equity: 54.905
Price to Book: 0.75
Net Asset Value (NAV): SGD 1.26
Closing Price (28-Mar-24): SGD 0.945

Mapletree Pan Asia Commercial Trust (SGX:N2IU)
Market Capitalization: SGD 6.7B
Current Dividend Yield: 6.93%
Price to Equity: 18.967
Price to Book: 0.72
Net Asset Value (NAV): SGD 1.777
Closing Price (28-Mar-24): SGD 1.28

Keppel Reit (SGX:K71U)
Market Capitalization: SGD 3.3B
Current Dividend Yield: 6.67%
Price to Equity: 52.082
Price to Book: 0.614
Net Asset Value (NAV): SGD 1.417
Closing Price (28-Mar-24): SGD 0.87

Suntec Reit (SGX:T82U)
Market Capitalization: SGD 3.1B
Current Dividend Yield: 6.61%
Price to Equity: 47.877
Price to Book: 0.482
Net Asset Value (NAV): SGD 2.24
Closing Price (28-Mar-24): SGD 1.08

Far East Hospitality Trust (SGX:Q5T)
Market Capitalization: SGD 1.3B
Current Dividend Yield: 6.39%
Price to Equity: 9.836
Price to Book: 0.687
Net Asset Value (NAV): SGD 0.932
Closing Price (28-Mar-24): SGD 0.64

Mapletree Logistics Trust (SGX:M44U)
Market Capitalization: SGD 7.3B
Current Dividend Yield: 6.21%
Price to Equity: 13.684
Price to Book: 0.965
Net Asset Value (NAV): SGD 1.512
Closing Price (28-Mar-24): SGD 1.46

PARAGON REIT (SGX:SK6U)
Market Capitalization: SGD 2.4B
Current Dividend Yield: 6.01%
Price to Equity: 17.396
Price to Book: 0.822
Net Asset Value (NAV): SGD 1.016
Closing Price (28-Mar-24): SGD 0.835

Mapletree Industrial Trust (SGX:ME8U)
Market Capitalization: SGD 6.6B
Current Dividend Yield: 5.73%
Price to Equity: 24.426
Price to Book: 1.198
Net Asset Value (NAV): SGD 1.953
Closing Price (28-Mar-24): SGD 2.34

CDL Hospitality Trust (SGX:J85)
Market Capitalization: SGD 1.3B
Current Dividend Yield: 5.59%
Price to Equity: 164.136
Price to Book: 0.722
Net Asset Value (NAV): SGD 1.413
Closing Price (28-Mar-24): SGD 1.02

CapitaLand Ascendas REIT (SGX:A17U)
Market Capitalization: SGD 12.2B
Current Dividend Yield: 5.47%
Price to Equity: 71.81
Price to Book: 1.191
Net Asset Value (NAV): SGD 2.326
Closing Price (28-Mar-24): SGD 2.77

CapitaLand Integrated Commercial Trust (SGX:C38U)
Market Capitalization: SGD 13.2B
Current Dividend Yield: 5.43%
Price to Equity: 33.957
Price to Book: 0.933
Net Asset Value (NAV): SGD 2.122
Closing Price (28-Mar-24): SGD 1.98

Keppel DC Reit (SGX:AJBU)
Market Capitalization: SGD 3B
Current Dividend Yield: 5.42%
Price to Equity: 32.597
Price to Book: 1.242
Net Asset Value (NAV): SGD 1.393
Closing Price (28-Mar-24): SGD 1.73

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