4 Things You Should Know About China-Based Singapore REITs Now

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In this article, we will look at four of the most interesting things about these REITs (from an SGX report) that investors might have missed.
Market-beating returns
These 10 China-related REITs averaged a total positive return of +15.7% year-to-date in 2019, bringing their one-year and three-year total returns to +10.9% and +24.5%, respectively.
The above returns came in stronger than the Straits Times Index (SGX: ^STI) which delivered one-year and three year returns of -5.7% and +14.6%, respectively.
Top performers
Not all China-based REITs are created equally though. Below are the top five best-performing REITs year-to-date along with their percentage gains in 2019 (as of 6 June).
- Sasseur Real Estate Investment Trust (SGX: CRPU) — +29.2%
- Mapletree Logistics Trust (SGX: M44U) — +24.9%
- Mapletree North Asia Commercial Trust (SGX: RW0U) — +22.9%
- Ascott Residence Trust (SGX: A68U) — +20.7% and;
- Capitaland Retail China Trust (SGX: AU8U) — +17.1%.
Comparatively, the STI index was up by about 5% during this period.
Worst performers still did alright
Two of the worst performers in this China group year-to date are Dasin Retail Trust (SGX: CEDU) and BHG Retail REIT (SGX: BMGU). Yet, their performance wasn’t actually that that bad. The former delivered +4.8% returns while the latter achieved +2.0% during the period.
Valuations not expensive
Another thing worth paying attention to here is that as a group, these REITs have a rather attractive valuation. According to SGX’s report, the group averaged a 12-month indicative dividend yield of 6.7% and a price-to-book (PB) ratio of 0.8.
Comparatively, the average dividend yield and PB ratio of all Singapore REITs (based on OCBC Weekly S-REITs Tracker) are 6.6% and 1.01, respectively. In other words, these REITs are not expensive despite delivering market-beating returns this year.
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This article is from The Motley Fool Singapore. Please read the original here.