Among Singapore’s real estate investment trusts (REITs), those focusing on hotels performed the worst in Q3 2017, reported the Singapore Business Review, citing data from OCBC Investment Research.
In fact, the distribution per unit (DPU) of hospitality REITs declined by 10.8 percent on an annual basis during the quarter, with Ascott Residence Trust suffering the largest drop of 28.1 percent.
This is followed by CDL Hospitality Trusts and Far East Hospitality Trust, whose DPU respectively dropped by 6.1 percent and eight percent. On the other hand, that for OUE Hospitality Trust increased by 10.6 percent.
Meanwhile, retail and industrial REITs reported DPU growth, while those focusing on office properties were pulled down by OUE Commercial REIT and to a smaller extent by Suntec REIT and Frasers Commercial Trust.
Out of the 24 listed trusts here, two posted flat DPU, while that for 13 rose on an annual basis. However, total DPU slid by 0.2 percent year-on-year.
In terms of total net property income (NPI), it climbed 4.8 percent, with Keppel DC REIT leading the growth. In fact, the net property income of Singapore’s sole data centre trust surged by 42.1 percent to $32.2 million.
As for hospitality REITs, their overall NPI rose five percent, propelled by CDL Hospitality Trusts’ 15.9 percent annual gain.
Industrial REITs recorded a modest growth of 4.8 percent, supported by Mapletree Industrial Trust’s gain of 11.1 percent and Viva Industrial Trust’s hike of 18.3 percent. Conversely, that for Cache Logistics Trust and Frasers Logistics & Industrial Trust respectively dropped by 3.3 percent and 4.4 percent.
This article was edited by Romesh.