4 Best Performing REITs In 2021 [18 Dec 2021] KDC REIT (SGX: AJBU); FLCT (SGX: BUOU); PLife REIT (SGX: C2PU); MLT (SGX: M44U)
REITs are a favourite investment for Singapore investors. They payout 90% of the income as distributions, thus giving investors a relatively good yield on their own investment. Being property-driven investments, we can also see its allure among Singapore investors.
In the first part of 2021, REITs prices crashed along with many global investments when COVID-19 uncertainties were at its highest. In the table below, we can observe that from the start of the year to its lowest point in mid-March, prices dropped close to 35%. It's since rebounded strongly, but still losing over 6% of their value in the year-to-date 2021.
While this represents the entire REIT market in Singapore, there are still individual REITs that have performed better – especially since the recovery of hospitality REITs have understandably lagged behind.
In this edition of 4 Stocks This Week, we look in the 4 best performing REITs listed in Singapore.
Keppel DC REIT (SGX:AJBU)
KDC REIT (SGX:AJBU) is really a data centre focused REIT, currently with 18 data centres in Singapore, Malaysia, Australia, Germany, the united kingdom, Italy, the Netherlands and Ireland within its portfolio.
In the chart below, you can see that KDC REIT was not spared from the sharp market crash in the middle of March 2021. Regardless, its stock price has rose strongly after that – going even higher than its Pre-COVID-19 highs.
As e-commerce and digital businesses were ideal to ride out the COVID-19 downturn, interest in its data centres has understandably increased, together with investors wanting exposure to such properties.
During the year-to-date 2021, its share price has risen 34% to $2.79 from $2.08 at the beginning of the year. It has also continued to pay distributions in the year, amounting to $0.06325 – or slightly greater than 3% of its share price at the start of 2021.
This means KDC REIT has returned delivered an overall total return of 37% in 2021.
Frasers Logistics & Commercial Trust (SGX:BUOU)
Also riding the e-commerce and digital wave, FLCT (SGX:BUOU) is another REIT that has seen its stock price go higher than pre-COVID-19 levels.
Frasers Logistics & Commercial Trust may be the merged entity between Frasers Logistics & Industrial Trust and Frasers Commercial Trust to become a larger and stronger REIT business. Today, FLCT owns a good portfolio of 100 logistics and commercial properties in Australia, Germany, Singapore, the UK and the Netherlands.
In the year-to-date FLCT's share price has increased 15% to $1.43, from $1.24 at the outset of 2021. It's distributions during 2021 has amounted to $0.0712, which is about 6% of its share price at the beginning of 2021.
This brings its total returns for 2021 to 21%.
ParkwayLife REIT (SGX:C2PU)
PLife REIT (SGX:C2PU) is well-known for its portfolio of 3 hospitals in Singapore – Mount Elizabeth, Gleneagles and Parkway East – and 49 nursing home properties in Japan. In addition, it also has a specialist clinic in Malaysia.
In the year-to-date, PLife REIT has seen its shares soar 17% to $3.87 from $3.32, around the back of the health-related economic uncertainties. Additionally, it has continued to pay out stable distributions add up to $0.1356, which translates into 4% of its start-of-year share price.
In total, PLife REIT has delivered an overall total return of nearly 21% in 2021.
Mapletree Logistics Trust (SGX:M44U)
MLT (SGX:M44U) is another REIT that benefitted from the acceleration of e-commerce and digital solutions in 2021. MLT owns a diversified portfolio of logistics properties in Singapore, Hong Kong, Japan, China, Australia, Columbia, Malaysia and Vietnam.
In the year-to-date 2021, MLT's share price has increased to $1.96 from $1.74, representing a 13% rise. Additionally, it paid distributions amounting to $0.08135, which means 5% of its share price at the start of the year.
Overall, MLT has delivered a total return of nearly 18% during 2021.