CapitaLand Integrated Commercial Trust (CICT)

CapitaLand Integrated Commercial Trust (CICT) delivered a solid performance in FY24, with notable gains in revenue and net property income (NPI). For the second half of FY24, revenue increased by 1.2% year-on-year (YoY) to S\$794.4 million, while NPI rose by 1.3% YoY to S\$571.1 million. This growth was supported by positive rental reversions and improved portfolio occupancy, although partially offset by an income vacuum from the divestment of Gallileo and the sale of 21 Collyer Quay.

The acquisition of a 50% stake in ION Orchard contributed to a 6.2% increase in portfolio valuation, now standing at S\$26.0 billion. This acquisition also supported retail performance, with committed occupancy for retail properties at 99.3%, while office properties reported a 94.8% committed occupancy rate. Shopper traffic grew by 8.7% YoY, with downtown malls witnessing a remarkable 17% increase.

Management anticipates continued positive rental reversions for the office portfolio in FY25 and expects contributions from Gallileo to materialize more significantly by FY26. Though the FY25-26 distribution per unit (DPU) estimates were slightly reduced by 2.02%-2.48% due to an enlarged unitholder base, CICT maintains a robust DDM-based target price of S\$2.45, with a recommendation to “Add.”

CapitaLand Ascott Trust (CLAS)

CapitaLand Ascott Trust (CLAS) stands out in the hospitality sector with a recommendation to “Add.” With a target price of S\$1.18, the trust provides an attractive dividend yield of 6.7% for FY24F, increasing to 7.6% by FY26F. The market capitalization of CLAS is US\$2,515 million, and its asset leverage is 38.3%, which is well in line with industry standards.

CDL Hospitality Trust (CDREIT)

CDL Hospitality Trust, also recommended as “Add,” offers a target price of S\$1.07. The trust is expected to deliver dividend yields of 6.3% in FY24F and 7.5% in FY26F. With a market capitalization of US\$783 million and an asset leverage of 38.8%, CDREIT features a stable and growing dividend profile.

Far East Hospitality Trust (FEHT)

Far East Hospitality Trust is another “Add” recommendation, with a target price of S\$0.78. Its dividend yield is forecasted to remain consistent at 7.0%-7.1% across FY24F to FY26F. FEHT’s market capitalization is US\$886 million, with an asset leverage of 30.8%.

AIMS AMP Capital Industrial REIT

AIMS AMP Capital Industrial REIT is not rated but exhibits a robust dividend yield of 7.4%-7.5% over FY24F to FY26F. With a market capitalization of US\$754 million and an asset leverage of 33.7%, it remains a strong player in the industrial REIT segment.

CapitaLand Ascendas REIT (CLAR)

CapitaLand Ascendas REIT is tagged as “Add” with a target price of S\$3.23. The trust is forecasted to offer dividend yields of 6.0%-6.3% over FY24F to FY26F. With a market capitalization of US\$8,313 million and an asset leverage of 38.9%, CLAR is a market leader in the industrial REIT space.

ESR-REIT

ESR-REIT, categorized as “Add,” has a target price of S\$0.36. Its dividend yield is forecasted to be 8.3%-8.9% from FY24F to FY26F. With a market capitalization of US\$1,503 million and an asset leverage of 42.8%, ESR-REIT shows a strong growth trajectory in its segment.

Keppel DC REIT

Keppel DC REIT is recommended as “Add” with a target price of S\$2.48. It provides a stable dividend yield of 4.4%-4.8% over FY24F to FY26F. With a market capitalization of US\$3,525 million and an asset leverage of 31.5%, it is a significant player in the data center REIT sector.

Mapletree Industrial Trust (MINT)

Mapletree Industrial Trust earns an “Add” recommendation with a target price of S\$2.82. It is expected to deliver dividend yields of 6.3%-6.7% from FY24F to FY26F. Its market capitalization is US\$4,420 million, with an asset leverage of 39.8%.

Mapletree Logistics Trust (MLT)

Mapletree Logistics Trust is also recommended as “Add,” with a target price of S\$1.73. The trust offers dividend yields of 6.2%-7.4% over FY24F to FY26F. With a market capitalization of US\$4,518 million and an asset leverage of 40.3%, MLT remains an attractive choice for industrial REIT investors.

CapitaLand China Trust (CLCT)

CapitaLand China Trust is not rated but features an impressive dividend yield forecast of 8.4%-8.6% from FY24F to FY26F. With a market capitalization of US\$916 million and an asset leverage of 41.6%, CLCT is a noteworthy player in the overseas-centric REIT space.

Parkway Life REIT

Parkway Life REIT is recommended as “Add” with a target price of S\$4.91. It offers a stable dividend yield of 3.9%-4.3% over FY24F to FY26F. With a market capitalization of US\$1,853 million and an asset leverage of 37.5%, it is a leading healthcare REIT.