The beauty of owning REITs is their ability to pay out a consistent dividend, thereby acting as a source of passive income flow.
Better yet, some REITs can steadily increase their distribution per unit (DPU), providing income-seeking investors with higher cash inflows over time.
Mapletree Logistics Trust (SGX: M44U), or MLT, is a good example.
The logistics-focused REIT, which owns 163 properties spanning countries such as Singapore, Japan, Australia and Hong Kong, has displayed a good track record of increasing its DPU.
Over the last five years, its DPU has risen by 12.8% from S$0.0738 to S$0.08326.
Given the REIT’s track record, can investors expect even more DPU growth in future?
Resilience in the face of adversity
The REIT has also proven itself resilient during the current pandemic, with overall occupancy remaining high at 97.8% as of 30 June 2021.
It helps that MLT is backed by a strong sponsor — Mapletree Investments Pte Ltd, itself a unit of investment company Temasek Holdings....