Have you ever dreamed of being a landlord, just sitting back and collecting rent? But in reality, buying a property to rent out comes with high costs, management hassles, and considerable risks.
Why not consider a low-barrier investment tool that helps you realize that “rental income” dream — REITs (Real Estate Investment Trusts)? Annual dividend yields of 5%–7% are not uncommon.
REITs are professionally managed, with rental income from properties as their main revenue source, and profits are regularly distributed to investors. Unlike regular stocks, Singapore regulations require REITs to distribute at least 90% of their taxable income as dividends to shareholders — allowing REITs to deliver a stable and long-term cash flow.
🇸🇬 What types of REITs are popular in Singapore?
Diversified REITs – e.g., $CapLand IntCom T(C38U.SI)$ (YTD +14.33%)
Recently hit a 52-week high of S$2.25, previous peak was S$3.10 on May 23, 2007.
Asset mix: retail, office, industrial.
Diversified risk, but higher complexity in management.
Healthcare REITs – e.g., $ParkwayLife Reit(C2PU.SI)$ (YTD +9.71%)
Assets: hospitals, nursing homes, medical centers.
Defensive sector, long and stable leases (often signed with governments or institutions).
Retail REITs – e.g., $Frasers Cpt Tr(J69U.SI)$ (YTD +7.14%)
Recently hit a 52-week high of S$2.29, with a previous peak of S$2.40 on March 5, 2020.
Assets: shopping malls, retail outlets.
Rent linked to consumer spending, often with revenue-sharing clauses based on tenant sales.
Office REITs – e.g., $KEPPEL REIT(K71U.SI)$ (YTD +5.11%)
Assets: office buildings, business parks.
Longer lease terms (typically 3–5 years), but sensitive to economic cycles.
Data Center REITs – e.g., $Keppel DC Reit(AJBU.SI)$ (YTD +2.21%)
Recently reached a 52-week high of S$2.35, previous high was S$2.64 on Oct 16, 2020.
Assets: data centers, telecom infrastructure.
High growth, high-credit tenants (e.g., tech giants).
Industrial / Logistics REITs – e.g., $Mapletree Log Tr(M44U.SI)$ (YTD –7.17%)
Assets: warehouses, logistics hubs, high-tech factories.
Benefiting from e-commerce boom, stable leases but slower rental growth.
How do REITs generate returns?
Dividend Yield: S-REITs typically offer annualized dividend yields of around 5%–7%.
Capital Gains: If the REIT’s properties appreciate in value, rental income increases, or investor demand rises, the REIT’s share price may also rise — allowing you to earn capital gains upon selling.
❗ Are REITs a guaranteed win?
Not quite. As attractive as REITs are, they’re not a “sure-win” magical investment. You should understand the following risks:
Market Risk: REITs are traded like stocks, so their prices fluctuate with the broader market, interest rates, and economic conditions.
Interest Rate Risk: REITs often rely on debt to fund expansion. When interest rates rise, borrowing costs go up, dividends may shrink, and prices can come under pressure.
That’s why the recent rally in S-REITs has been fueled by expectations of a Fed rate cut.
So, which REIT are you bullish on?
Besides the ones mentioned above, $CapitaLandInvest(9CI.SI)$ , $CapLand Ascendas REIT(A17U.SI)$ , and $Mapletree PanAsia Com Tr(N2IU.SI)$ also performed well last week and are among the most popular picks.
Which REITs do you hold in your portfolio?
If you could only own one, which REIT would you recommend to fellow investors?
And how do REITs compare to Tiger Vault: which one do you prefer?
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Comments
I’m especially drawn to diversified and healthcare REITs. CapLand IntCom Trust gives access to multiple property types, while ParkwayLife REIT offers stability through long-term leases in the healthcare sector. This mix balances income and growth while helping cushion market volatility.
Between REITs and Tiger Vault, I prefer REITs for their higher yield and growth potential. Tiger Vault is useful for short-term cash parking, but for income and upside, REITs win. If I had to pick one, I’d recommend CapLand Ascendas REIT — strong fundamentals, quality assets, and solid long-term outlook.
@TigerStars @Tiger_comments @CaptainTiger
Many people out there always say hold for long term as passive income.... how many of them have seen their capital melt down...
CICT also pays a nice juicy dividend yield of 5%. That is heaps better than the dwindling interest rates that the local banks are paying, not forgetting the capital appreciation too.
Go Long Go Strong Go CICT! 🚀🚀🚀🌛🌛🌛💰💰💰🇸🇬🇸🇬🇸🇬
@Tiger_SG @Tiger_comments @TigerStars @CaptainTiger
now thinking abt it, I guess I should take everything out & put my money in a better place.. [Smile]