4 REITs Still Yielding 6% or More Despite Market Highs

Core Viewpoint - Singapore's REIT sector is recovering with rising unit prices, driven by expectations of further interest rate cuts, while still presenting opportunities for passive income investors [1] Group 1: Starhill Global REIT - Starhill Global REIT focuses on prime commercial and retail assets, with a portfolio including Wisma Atria and Ngee Ann City in Singapore, and seven other properties globally [2] - For the first half of FY25/26, the REIT reported revenue of S$96.3 million, unchanged from the previous year [2] - Net property income (NPI) decreased by 0.8% YoY to S$75.1 million, primarily due to the divestment of Wisma Atria office units; excluding this, NPI would have increased by 0.1% YoY [3] - The REIT maintains a weighted average lease expiry (WALE) of 7.4 years, indicating stable cash flow for dividends, with an annualized distribution per unit (DPU) of S$0.036 [3] - At a unit price of S$0.56, the dividend yield is 6.4% [4] Group 2: Mapletree Logistics Trust - Mapletree Logistics Trust owns 174 properties across nine Asia-Pacific markets, focusing on warehouses and distribution centers [4] - For 3Q FY25/26, revenue fell by 3.1% YoY to S$176.8 million, and NPI decreased by 3.3% to S$152 million, attributed to divestments and foreign exchange headwinds [4][5] - Despite these declines, the REIT achieved a positive rental reversion of 1.1%, indicating improved leasing demand, with China operations showing significant improvement in rental reversion [5] - MLT has a trailing DPU of S$0.074, and at a unit price of S$1.24, the dividend yield is close to 6% [6] Group 3: Mapletree Industrial Trust - Mapletree Industrial Trust owns 136 technology-related industrial properties, including 13 data centers in North America [8] - For 3Q FY25/26, gross revenue declined by 8% YoY to S$163.1 million, and NPI fell by 7.8% to S$122.8 million, mainly due to divestments and lower contributions from the North American portfolio [8] - The REIT expects to benefit from the AI boom, with a record-low vacancy rate of 1.6% in primary markets, and plans to divest S$500 million to S$600 million in North American assets for high-quality data centers in Asia Pacific and Europe [9] - MIT has a trailing annual DPU of around S$0.13, with a unit price of S$2.00, resulting in a dividend yield of 6.6% [10] Group 4: United Hampshire US REIT - United Hampshire US REIT's portfolio consists of 22 assets anchored by US retail centers and supermarkets [11] - For 2025, gross revenue fell by 1.7% YoY to US$72 million, and NPI decreased by 1.7% YoY to US$49 million, while maintaining a high retention rate of 90% and a WALE of 7.7 years [11] - The REIT has divested two assets at premiums of 17.5% and 4.2% since 2024, using the funds to acquire higher-yielding assets [11] - UHREIT has a trailing annual DPU of US$0.0439, and at a unit price of US$0.52, it offers a dividend yield of 8.4% [12] Group 5: Investment Opportunities - As interest rates are expected to ease, opportunities for decent yields remain, but investors should analyze underlying assets beyond just yield [13] - Factors such as tenant performance and capital recycling efficiency are crucial for identifying REITs with sustainable growth [13] - Selecting REITs with strong fundamentals and evident growth catalysts is essential for long-term benefits [14]