REITs are well-known for their reliable distributions as they need to pay out at least 90% of their net profit to qualify for tax incentives.
The Singapore stock exchange is a veritable hub for REITs that will leave you spoilt for choice.
It’s important to pick REITs with strong sponsors and sturdy track records of raising their distribution per unit (DPU).
Another aspect to look out for is REITs with low or fair levels of gearing.
As REITs are leveraged vehicles, they typically tap on debt for acquisitions that can help boost their DPU.
By identifying REITs with reasonable gearing, it’s possible to sieve out those with a good chance of acquiring to improve their DPU.
Here are five Singapore REITs with sufficient debt headroom that you may want to add to your buy watchlist.
Digital Core REIT (SGX: DCRU)
Digital Core REIT, or DCR, is a data centre REIT that owns 10 data centres in the US and Canada worth US$1.46 billion as of 30 June 2022....