As we enter the final quarter of the year, many real estate investment trusts (REITs) are preparing to release their quarterly earnings reports.

For investors, this is an exciting time, as it not only provides insights into the financial performance of these REITs, but also brings the anticipation of distribution payouts.

In October, four prominent blue-chip REITs will be declaring their distributions, presenting opportunities for those aiming to build or maintain a portfolio of income-generating assets.

1. Frasers Centrepoint Trust (SGX: J69U)

Frasers Centrepoint Trust (SGX: J69U) is a retail-focused REIT with a portfolio of nine suburban malls and one office property located across the various suburban areas in Singapore. 

Key assets in its portfolio include popular malls such as Causeway Point, Northpoint City (North Wing), and Waterway Point.

For the first half of the fiscal year ended 31 March 2024 (1H FY2024), the REIT reported a 7.2% year-on-year decline in gross revenue to S$172.2 million, and an 8.4% year-on-year drop in net property income (NPI) to S$124.6 million. 

This decrease was primarily attributed to the divestment of Changi City Point in October 2023, as well as asset enhancement works at Tampines 1 Mall, which are expected to be completed last month.

Excluding these factors, FCT’s underlying gross revenue and NPI registered steady growth of 2.9% and 2.1%, respectively, compared to last year.

FCT’s portfolio remains robust, with an occupancy rate of 99.9% as of 31 March 2024. 

The REIT also achieved positive rental reversions of 7.5% for 1H FY2024, an improvement from 4.3% recorded a year ago.

On the financial front, FCT maintains a healthy balance sheet, with an aggregate leverage ratio of 38.5% as of 31 March 2024, and no refinancing obligations due for the remainder of FY2024. 

Following the gross revenue decline, distribution per unit (DPU) for 1H FY2024 slipped by 1.8% year on year to S$0.06022.

Looking ahead, FCT is expected to announce its results for the full year ended 30 September 2024 on 25 October 2024, before the market opens.

2. Mapletree Industrial Trust (SGX: ME8U)

Unlike FCT, Mapletree Industrial Trust (MIT) primarily invests in industrial properties across Singapore, along with data centre assets in North America and Japan. 

As of 30 June 2024, MIT’s portfolio comprises 56 properties in North America, 83 properties in Singapore, and one property in Japan. 

For the first quarter of the fiscal year ending on 31 March 2025 (1Q FY2025), MIT reported a gross revenue of S$175.3 million, representing a year-on-year increase of 2.7%. 

Net property income (NPI) inched up by 1.3% to S$132.5 million over the same period. 

The improved performance was largely attributed to contributions from a newly acquired data centre in Japan, alongside new leases and renewals across its existing properties.

MIT maintained a healthy portfolio occupancy rate of 91.9% for 1Q FY2025. 

It also achieved a positive weighted average rental reversion rate of 9.2% for its Singapore properties, with a weighted average lease expiry (WALE) of 4.6 years, reflecting continued resilience in its leasing performance.

In terms of capital management, MIT’s aggregate leverage stood at 39.1% as of 30 June 2024. 

The REIT has a well-spread out debt maturity profile, with no more than 25% of borrowings due for refinancing in any financial year. 

Additionally, about 82% of its borrowings are hedged at fixed interest rates, providing a buffer against potential interest rate hikes.

For 1H FY2024, MIT declared a DPU of S$0.0343, up 1.2% year on year, driven by higher net property income and increased distributions from joint ventures.

MIT is scheduled to announce its financial results for the second quarter of fiscal 2025 after the market closes on 29 October 2024. 

3. Mapletree Logistics Trust (SGX: M44U)

Mapletree Logistics Trust (MLT) is focused on managing logistics properties across key Asian markets. 

As of 30 June 2024, its portfolio encompasses 188 properties across eight countries in Asia, with a total asset value of S$13.4 billion. 

In the first quarter of the fiscal year ending 31 March 2025 (1Q FY2025), MLT experienced a slight dip in both gross revenue and net property income, down 0.3% and 0.9% year-on-year to S$181.7 million and S$156.7 million, respectively. 

This decline was primarily attributed to weaker performance from its assets in China, the absence of contributions from divested properties, as well as the depreciation of the Japanese Yen and Chinese Yuan against the Singapore Dollar.

Despite these headwinds, MLT maintained a stable portfolio occupancy rate of 95.7% as of 30 June 2024, with a positive rental reversion of 2.6% from leases renewed during the quarter.

Meanwhile, MLT continues to demonstrate strong capital management. 

As of 30 June 2024, its aggregate leverage stood at 39.6%, with a well-distributed debt maturity profile with no more than 21% of its borrowings due in any single financial year. 

Furthermore, 83% of MLT’s total debt is either hedged or secured at fixed rates, mitigating exposure to rising interest rates.

However, due to lower divestment gains, rising borrowing costs, and a larger unit base, MLT’s DPU for 1Q FY2025 dropped 8.9% year-on-year to S$0.02068.

Investors can look forward to MLT’s second quarter results for the fiscal year 2025, which will be released after market hours on 22 October 2024.

4. Mapletree Pan Asia Commercial Trust (SGX: N2IU)

Mapletree Pan Asia Commercial Trust (MPACT) has a diversified portfolio of retail and office properties across key gateway cities in Asia.

Following the successful divestment of Mapletree Anson on 31 July 2024, MPACT’s portfolio now comprises 17 commercial properties, which includes four assets in Singapore, one in Hong Kong, two in China, nine in Japan, and one in South Korea.

For the first quarter of the fiscal year ending 31 March 2025 (1Q FY2025), MPACT reported stable results, with gross revenue reaching S$236.7 million and net property income (NPI) coming in at S$179.4 million. 

While the REIT benefitted from stronger contributions from its Singapore assets, the gains were offset by the depreciation of the Japanese Yen and Chinese Yuan against the Singapore dollar.

As of 30 June 2024, MPACT’s portfolio occupancy stood firm at 94.0%, along with a WALE of 2.5 years.

As of 30 June 2024, MPACT maintained an aggregate leverage ratio of 40.5%, demonstrating prudent financial management. 

The REIT boasts a well-distributed debt maturity profile, with no more than 19% of its total borrowings requiring refinancing in any given financial year. 

Additionally, 78.9% of its loans are hedged at fixed interest rates, providing stability amid fluctuating market conditions.

MPACT’s DPU for 1Q FY2025 declined by 4.1% year on year to S$0.0209, primarily due to higher finance costs in the current elevated interest rate environment. 

Looking ahead, MPACT is set to release its second-quarter results for fiscal 2025 after market hours on 24 October 2024.