REIT Sector has faced a trouble year in 2023. The combination of high inflation and rising interest rates has decrease emotions for this asset class.

REIT will continue to be a charming assets class to create a steady passive source of income. Income investors should memorizes that REITs still need to pay out at least 90% of their profit as distribution to enjoy tax benefits.

I make 4 Singapore REITs that could recover upcoming year and post higher distribution per unit DPU for 2024.

OUE Commercial REIT (SGX: TSOU)

The REIT manager had completed a successful rebranding of Hilton Orchard Singapore with the completion of an asset enhancement initiative to increase the number of rooms to 1080.

Rental reversion was sharp 31.1% for the quarter. OUECR total leverage stood at 39.4% as of 30 Sep 2023 with 68% of its borrowing on fixed rates and the REIT has no refinancing requirement till 2025.

OUE Commercial REIT is a commercial REIT with seven assets in Singapore and Shangai with an AUM of $6billion as of 30 June 2023.

For 9M, 2023 OUECR revenue climb 22.4% year on year to $214.6 million while NPI climbed 25.4% year on year to $ 178 million.

Revenue per available room RevPAR for 3Q 2023 was nearly 60% higher at $345 compared with 2019.

Retail asset Mandarin Gallery Shopper traffic for 3Q 2023 was a 98% of pre pandemic levels with tenant sales. OUECR office segment view a positive rental reversion of 18.4% for the quarter with a high committed occupancy of 95.7%.

AIMS APAC REIT (SGX: 05RU)

AAREIT has a high quality tenant base with 81.1% and diversified gross rental income from tenants in defensive industries.

AAREIT encourages strong operating metrics with a mega portfolio occupancy of 98.1% along with a rental reversion of 38% for 1H FY 2024.

AIMS APAC REIT is an industrial REIT with a protfolio of 28 properties in Singapore 25 and Australia 3 with a total property value of $ 2.2 billion.

For first half of fiscal 2024 ending 30 septemeber 2023 AAREIT’s gross revenue climbe 4.4% year on year to $ 86.8 million.

NPI climb by 5.1% year on year to $64.3 million. However DPU down 1.1% year on year.

Aggregate leverage stood at just 32% opening the REIT to tap on debt for yield accretive acquisitions. 77% of its debt is hedged to fixed rates and REIT has no refinancing commitments for FY 2024.

First REIT SGX : AW9U

The REIT’s assets under management AUM standing at $1.15 billion as of 31 December 2022. First REIT is a healthcare REIT with a portfolio of 15 properties in indonesia comprising malls, hotels and hospitals. 14 nursing homes in Japan and three nursing homes in Singapore.

With no refinancing requirement until May 2026. First REIT is mitigated against increase in finance costs over the next two years.

First REIT is helped by sponsors in OUE limited SGX: LJ3 and OUE Healthcare limited SGX: 5WA with sponsors having 44.6% stake in the REIT.

Gearing level rises at 39% with nearly 86% of REIT loans pegged to fixed rates.

First REIT coul view rises DPU in 2024 should interest rates and strengthen REIT’s capital structure.

For the first nine months of 2023 First REIT total income roses 0.6% year on year.

DPU slipped by 6.1% year on year to $0.0186 due to higher finance costs and depreciation of operating currencies against the singapore dollar.

Net Property Income came in stable year on year at %79.1 million. However in the 3rd quarter of 2023 DPU has remained flat on quarter at $0,0062.

Lendlease Global Commercial REIT SGX: JYEU

Lendlease Global Commercial REIT or LREIT owns an office retail property in Singapore along with retail property 313 somerset. It is portfolio include three Grade A office building in Milan, Italy, Sky Comlex and Parkway Parade in Singapore.

LREIT released first quarter fiscal 2024 business update that saw a committed occupancy of 99.9%. LREIT has 61% of its debt hedged to fixed rates and no refinancing requirement till FY2025.

REIT fiscal 2023 ending 30 June 2023 gross revenue more than doubled year to year $204.9 million.