With interest rates slowly rising, it is getting harder for Singapore investors to find REITs that offer attractive yields above the government bonds. In Singapore, thanks to the CPF system, you get 2.5% (OA) or 4% (SA) yield risk-free just by investing your money in there. Of course, the largest disadvantage is that the funds aren’t very liquid and you can’t just withdraw the funds out as and when you please. In this article, I’ll be sharing 4 REITs that are yielding higher than the CPF SA and comes with an attractive upside for capital appreciation.
The selection criteria is fairly straightforward as the REITs have to qualify for all 4 points below.
- Dividend Yield > 4% (CPF SA Interest Rate)
- Growth Potential (Potential Capital Gains)
- Gearing Ratio < 35%
- Interest Coverage Ratio > 3.5x
#1 Ascendas REIT
Kickstarting our list of REITs is Ascendas REIT (SGX: A17U), Singapore’s first and largest listed business space and industrial REIT.