What is a Real Estate Investment Trust (REIT)?
A real estate investment trust is a listed vehicle that invests in a portfolio of income-generating properties. Rents collected from tenants, less expenses are distributed on a regular basis to provide stable yields to Unitholders.
What are the benefits of investing in REIT?
- REITs offer stable returns from the rentals collected from the tenants.
- REITs offer tax advantages. For qualifying Unitholders, distributions from REITs are free of tax at source. For the period of 18 February 2005 to 31 March 2020, the withholding tax rate for foreign non-individual investors is 10%.
- REITs as a portfolio diversification tool - REITs have a risk profile slightly higher than that of bonds and a return profile slightly lower than that of stocks. REITs offer competitive returns for the risk assumed.
- REITs provide a hedge against inflation. When inflation rises, the value of real estate and real estate securities can be expected to increase as well. REITs thus can be considered as a substitute for a fixed income portfolio during periods of expected and high inflation.
What is Ascendas REIT?
Ascendas Reit, Singapore's first business space and industrial REIT, was listed on 19 November 2002. It has grown from eight properties valued at around S$600 million in 2002 to 171 properties valued at around S$11.1 billion as at 31 March 2019.
Ascendas Reit owns a diversified property portfolio in Singapore, Australia and the United Kingdom . In Singapore, its property portfolio comprises business and science parks properties, hi-specs industrial properties, light industrial properties, logistics and distribution centres as well as integrated development, amenities and retail properties.
In Australia, Ascendas Reit has logistics properties and suburban offices located in the key cities of Sydney, Brisbane, Melbourne and Perth. Its properties in the United Kingdom comprises logistics properties located in established industrial areas across various regions including Yorkshire and the Humber, North West England, East and West Midlands, South East England and East of England.
These properties house a tenant base of international and local companies from a wide range of industries and activities, including research and development, life sciences, information technology, electronics, engineering, light manufacturing, telecommunications, logistics service providers, manufacturing services and back-room office support in service industries.
For more information, please refer here
How can I invest in Ascendas REIT?
To invest in Ascendas REIT which is listed on the Singapore Exchange (SGX), an individual must first have a securities account with the Singapore Central Depository (Pte) Ltd.
For details on how to open a CDP securities account, please see http://www.sgx.com/cdp
Contact details of CDP:
The Central Depository (Pte) Limited
9 North Buona Vista Drive
#01-19/20 The Metropolis
Tel. +65 6535 7511
Fax. +65 6535 0775
8.30 am to 5.00 pm (Monday to Friday)
9.00 am to 12.30 pm (Saturday)
Closed on Sundays and Public Holidays
Can I use my Central Provident Funds (CPF) to invest in Ascendas REIT?
Yes, you may use up to 35% of the investible savings in your CPF ordinary account.
Are the distributions/earnings in Ascendas REIT guaranteed?
Unlike bonds, Ascendas Reit's earnings or distributions are not guaranteed. However, the yield for Ascendas Reit as at 31 December 2020 was 16.7% based on the initial public offering price of S$0.88 per Unit; and 4.9% based on the 31 December 2020 closing price of S$2.98, which compares favourably with other investment products in the market.
Must I hold on to the Ascendas REIT units until maturity?
There is no maturity date for Ascendas REIT units. Investors in Ascendas REIT may buy or sell their units through the Singapore Exchange via their brokers.
What is Ascendas REIT's annual financial period?
Ascendas Reit's annual financial period begins on 1 January and ends on 31 December. Prior to 31 March 2019, Ascendas Reit’s financial period began on 1 April and ended on 31 March.
When is Ascendas REIT's distribution?
Ascendas Reit's distribution (if any) is paid on a semi-annual basis to Unitholders. From 2020, the regular distributions shall be made on a semi-annual basis for every 6-month period ending 30 June and 31 December each year.
What is Ascendas REIT's stock code and stock symbol?
Ascendas REIT stock code is Ascendasreit and stock symbol is A17.SG.
With effect from 31 March 2003, Ascendas REIT is available for trading through SGX's co-trading link with the Australian Stock Exchange (ASX).
What are the risks for investing in Ascendas REIT?
Majority of Ascendas REIT's properties are located in Singapore, which exposes it to economic and real estate conditions in Singapore. There are other business park, hi-specs and light industrial properties, logistics and distribution centres and integrated developments in Singapore that will also compete with Ascendas REIT's properties to attract customers.
What is the total number of Ascendas REIT units in issue?
A total of 4,020,842,385 Units are on issue as at 31 December 2020. For the latest issued and paid-up units, please refer to http://ir.ascendas-reit.com/stock-fundamentals.html