Singapore REITs are listed companies that you can invest in, similar to how you would buy shares in other companies. But unlike other listed companies, REITs use investors’ money to buy, operate and manage properties rather than run businesses. There are currently 35 REITs in Singapore. They can be subdivided into these property sectors: office, retail, industrial, hospitality and healthcare.

1. S I N G A P O R E R E I T s
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The Complete Guide
2018

2. W H A T A R E
R E I T S ?
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3. R E I T s
Singapore REITs are listed companies that you can invest in,
similar to how you would buy shares in other companies. But
unlike other listed companies, REITs use investors’ money to
buy, operate and manage properties rather than run
businesses.
S I N G A P O R E R E I T s
There are currently 35 REITs in Singapore. They can be
subdivided into these property sectors: office, retail, industrial,
hospitality and healthcare.
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4. S I N G A P O R E R E I T s
W h a t k i n d o f
r e t u r n s c a n y o u g e t
f r o m R E I T s ?If you invest in a REIT, you can expect it to yield between 5%
and 7% a year in dividends (paid out quarterly or every 6
months).
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How is it possible for yields to consistently be so high though?
It’s because REITs are required by law to redistribute at least
90% of their taxable income each year i.e. pay it out in
dividends.

5. H O W D O Y O U
C H O O S E A R E I T ?
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6. H O W D O Y O U
C H O O S E A R E I T ?
The key is to discover one that is very much overseen and can
guarantee a steady stream of payments. Don’t simply run for those
with higher revealed yields, yet set aside the opportunity to peruse
the REIT’s plan and check whether it fits with your hazard hunger
and to what extent you mean to remain contributed.
S I N G A P O R E R E I T s
A decent place to begin doing appropriate research into REITs is
through SGX Stock Facts. Channel “Industry” to “Land Investment
Trusts (REITs)” and you can see some key details from each recorded
organization.
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7. H O W D O Y O U
C H O O S E A R E I T ?
One such pointer is the obligation to-value proportion (D/E). In the
event that the organization has a considerable measure of
obligations to reimburse, it would be stuck in an unfortunate
situation if there’s a downturn – it may need to exchange its benefits
or even become penniless.
To decrease your hazard, select a REIT with a solid D/E proportion
underneath 60%.
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8. H O W D O Y O U
C H O O S E A R E I T ?
Likewise, with any kind of contributing, you remain to acquire on the
off chance that you put resources into the organization before each
Tom, Dick, and Harry goes ga-ga over it.
Search for underestimated REITs by checking the cost to-book-
esteem proportion (P/BV), which demonstrates the end cost of a
stock isolated by its quarterly book esteem. AP/BV proportion of
under 1 could show the potential for development, in spite of the
fact that you’d have to do the exploration to affirm this is without a
doubt the case.
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9. W H A T T Y P E S O F
R E I T S T O
A V O I D ?
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10. W H A T T Y P E S O F
R E I T S T O A V O I D ?
Highly-leveraged REITs
Excessive private placements
Declining distribution per unit
High valuation
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11. H I G H L Y - L E V E R A G E D
R E I T S
REITs in Singapore have a gearing ratio limit of 45%, as
mandated by the Monetary Authority of Singapore. The
gearing ratio is calculated by taking a REIT’s total borrowings
and dividing it by its total assets.
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12. E X C E S S I V E P R I V A T E
P L A C E M E N T S
Private placements happen when a REIT sells its units to a
specific group of investors. Unlike a rights issue where retail
investors such as you and me can participate, private
placements are reserved for a select group of investors such as
institutional investors or wealthy individuals.
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13. D E C L I N I N G
D I S T R I B U T I O N P E R
U N I T
Investors in REITs should look out for consistent growth in the
distribution per unit (DPU). An increasing DPU in every year
signals to the market that the REIT’s assets are stable and can
attract quality tenants. On the other hand, a falling DPU shows
that a REIT is struggling to increase rents and its prospects are
likely not that great.
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14. H I G H V A L U A T I O N
The PB ratio is calculated by taking the market price of a REIT
and dividing it by the REIT’s latest net asset value (also known as
book value) per unit. Any ratio above 1 shows that the REIT is
trading at a premium to its net asset value, which is assets minus
liabilities.
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15. T H A N K S
F O R Y O U R T I M E !
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