Three REITs With Dividends Exceeding 6%: Should You Invest?

In an environment of persistently high interest rates, Singapore investors are keenly seeking reliable income streams.

REITs that provide a dividend yield surpassing 6% appear particularly appealing. Yet, a high yield alone does not signify sound investment potential.

Some REITs offer sustainable dividends backed by robust fundamentals, whereas others may mask hidden risks unknown to investors.

This article evaluates three REITs offering a dividend yield above 6% to determine their suitability for inclusion in your investment portfolio.

CapitaLand China Trust (SGX: AU8U) – China-focused Retail & Business Park Landlord

CapitaLand China Trust (CLCT) is the largest China-centric REIT in Singapore.

This REIT's portfolio spans various asset classes, including retail, business parks, and logistics facilities. As of 30 June 2025, the total assets under management (AUM) for CLCT stood at S$4.5 billion, sponsored by CapitaLand Investment, holding approximately a 25% stake, with a fund management scale totaling about S$117 billion.

For the third quarter of 2025 (3Q2025), revenue fell 8% year-on-year (YoY), decreasing from RMB452.8 million to RMB416.6 million, largely due to reduced income from the retail and business divisions and missing contributions from CapitaMall Yuhuating.

Net property income (NPI) also dropped 8.5% YoY to RMB273.5 million. The portfolio’s occupancy rate was 90.6%, while retail and logistics sectors achieved occupancy rates of 97.1% and 96.6%, respectively.

Rental reversion for retail, business park, and logistics sectors showed negative rates of 1.5%, 8.9%, and 24.5%, respectively, for the first nine months of 2025. Weighted average lease expiry (WALE) remains stable at 2.6 years based on net leaseable area.

The top ten tenants constitute only 8.8% of total rental income, decreasing tenant concentration risks.

On the capital management front, CLCT’s gearing ratio sits at 38.8%, with an interest coverage ratio of 2.9 times and an average debt maturity of 3.4 years. Notably, 80% of its debts are secured at a fixed interest rate, limiting fluctuations in financing costs.

With a 12-month trailing dividend of S$0.0513 and a share price of $0.79, CLCT yields a dividend of 6.49%. While its portfolio occupancy rates remain above 90%, stable capital management profiles, and negative portfolio reversion might hinder organic distribution growth shortly.

Mapletree Industrial Trust (SGX: ME8U) – Data Centre & Industrial REIT

Mapletree Industrial Trust (MIT) is an industrial-centric REIT with exposure to data centers, Hi-Tech Buildings, Business Space, and General Industrial Buildings.

As of 30 September 2025, MIT’s portfolio includes 136 properties with a total AUM around S$8.5 billion, distributed as North America 47.2%, Singapore 45.2%, and Japan the remainder. MIT’s sponsor is Mapletree Investments, a multi-faceted real estate entity with S$80.3 billion in assets under management globally.

In their latest 2QFY2025/2026 results, NPI decreased 7.8% YoY to S$124.0 million, while distribution to unitholders fell 5.3% YoY to $90.7 million.

DPU dropped 5.6% YoY to S$0.0318 due to diminished income from divestments and foreign exchange headwinds.

MIT’s overall portfolio occupancy is stable at 91.3%, with a positive rental reversion rate of 6.2% for renewed leases in Singapore.

MIT's WALE is robust at 4.6 years, while its top ten tenants form approximately 30.7% of the portfolio's gross rental income. No single trade sector contributes over 16% to the total gross rental income.

With a gearing ratio at 37.3% and nearly 93% of debt hedged at fixed rates, the average interest coverage ratio remains healthy at 3.9 times, and debt maturity averages about 3.0 years. The share price is $2.06 with S$0.1322 in dividends trailing for 12 months, providing a 6.42% yield.

The yield exceeding 6% for MIT potentially combines opportunity and risk due to its stable portfolio but declining DPU requires investors' attention.

United Hampshire US REIT (SGX: ODBU) – Essential & Necessity Retail

United Hampshire US REIT (UHREIT) manages a portfolio of 20 predominantly grocery-anchored necessity-based properties and two self-storage properties.

These assets cover approximately 3.6 million square feet of net lettable area, with AUM reaching US$751 million. UHREIT is supported by sponsors UOB Global Capital & The Hampshire Companies LLC, partners for over 15 years, collaboratively managing funds and co-investment portfolios.

In UHREIT’s recent 9M2025 business update, gross revenue and net property income declined by 1.6% (US$53.8 million) and 1.9% (US$36.7 million) YoY, mainly due to missing contributions from three divested properties.

Distributable income rose 6.6% YoY to US$19.9 million, driven by lower financing costs and reduced borrowings.

UHREIT’s committed occupancy rate for the Grocery & Necessity portfolio remains high at 97%, with leases primarily triple net and featuring rental escalations.

Self-storage properties maintained 94.9% occupancy.

The Grocery & Necessity portfolio shows a WALE of 7.5 years, with a high tenant retention rate at 90%. Top 10 tenants’ WALE averaged 9.6 years, suggesting steady income streams.

Additionally, 59.0% of tenants provide essential services, promoting stability in long-term income flow.

UHREIT's gearing ratio is 38.9% with no refinancing until November 2026 and no interest rate swaps maturing until December 2026, ensuring predictability in financing costs.

With a share price at US$0.51 and a 12-month trailing dividend of US$0.0414, UHREIT offers an attractive dividend yield of 8.12%. However, being USD-denominated means investors should factor in foreign exchange rate fluctuations as associated risks.

Is a 6% Yield Indicative of Safety or Risk?

A REIT with high dividend yields might signify strong value or hidden structural challenges.

Several factors influence the long-term viability of these high yields, including:

1. Stability of cash flow: Reliable cash flow can sustain high yield payments, whereas volatility may jeopardize dividend distribution.

2. Debt refinancing profile: A diversified debt maturity reduces sudden financing cost fluctuations, aiding income stability.

3. Asset quality and tenant strength: High-assets and strong tenants ensure consistent rental income, supporting sustainable dividends.

4. Sector resilience: Durable sectors avoid extended vacancies, maintaining cash flow stability.

5. Sponsor support: Robust sponsor backing allows growth access and sustains distribution stability.