Often for growth profile of REITs, we look at both DPU growth and NAV growth, but are there any other metrics growth that we could look into from Basic Financial Metrics of REITs and Uncommon Financial Metrics of REITs ? Today, let’s try to explore this.
1) DPU Growth
REITs could increase its DPU through organic growth or inorganic growth. Organic growth means growth without acquisition of properties, could be through positive rental reversion, increase occupancy, increase REVPAU, AEI (Asset Enhancement Initiative), etc. Inorganic growth is growth either through acquisition or development of properties. Below is list of top 5 REITs that have most DPU growth in past 5 years or since IPO:
Top 5 DPU Growth Approx. Value Ascendas India Trust Fortune REIT Ascendas Hospitality Trust Mapletree North Asia Commercial Trust Mapletree