Why I Am Investing in Two Singapore Listed REITs Delivering More Than 8% Dividend Yield

UI Boustead REIT and Daiwa House Logistics Trust offer distribution yields above 8%, meaningfully higher than most Singapore blue-chip REITs such as Keppel REIT and CapitaLand Ascendas REIT, as well as traditional fixed income instruments. This places them at a clear income premium while still being backed by real asset cash flows.

Beyond yield, both trusts are anchored in logistics and industrial properties supported by long-term structural drivers including e-commerce growth, advanced manufacturing, and global supply chain reconfiguration. These are demand themes that continue to underpin occupancy and rental resilience across cycles.

UI Boustead REIT has a diversified portfolio of industrial, business park, and logistics assets primarily located in Singapore (about 70%+), with the remainder in Japan. Its tenant base is anchored by multinational corporations across engineering, life sciences, aerospace, and technology sectors, including names such as Rolls-Royce, Jabil, GSK, and Razer. This creates relatively stable occupancy supported by mission-critical industrial usage.

Daiwa House Logistics Trust (DHLT) focuses on modern logistics facilities, with the majority of assets located in Japan and a smaller portion in Vietnam. Its properties are strategically positioned near major transport corridors and consumption hubs. Tenants typically include e-commerce distributors, and warehouse users such as Suntory and Mitsubishi Express, providing long lease structures and stable cash flow visibility.

Geographically, the two REITs complement each other well: UI Boustead provides exposure to Singapore’s high-spec industrial and business park office for HQs, while DHLT offers pure-play exposure to Japan’s logistics market, which benefits from Japan's e-commerce, food and beverage products and automation tailwinds.

Improved Investment View

For income investors, the core attraction is the exceptionally high and sustainable cash yield. With both REITs offering 8%+ distributions, investors are effectively locking in a materially higher income stream compared to most blue-chip REITs, government bonds, and fixed deposits. Importantly, this yield is backed by real assets, long lease tenures, and institutional-grade tenants rather than speculative growth assumptions. Combined with moderate leverage levels and strong sponsor backing, the pair provides a compelling balance of income stability and geographic diversification in today’s higher-rate environment.

May 2025: New Addition UIBREIT

Dividend came in from Nanofilm, Frencken and Riverstone. Besides, I have bought UIB REIT. This diversifies my dividend sources and importantly, increases my dividend received.

With discovery of high yielding Singapore stocks and sustainable payout, I am now shifting my annual dividend target (for the better, unlike PAP-style goalpost shifting to smoke citizens.)

The dividend target I have set is $100,000. It is an increase from my previous goal of $60,000 because I have bested it due to NTT DC REIT, United Hampshire gains

Dividend (Year to Date)

USD $13,060

HKD $9,068.61

SGD $8,891.20

UHREIT Growing Dividend Every Year: One of the Highest Yield in Singapore

United Hampshire US REIT ("UHREIT") reported a strong 1Q 2026, with distributable income rising 10.0% year-on-year to US$6.9 million,

Taking it on an annual basis, once can expect about US$26.6 million in distributable income. The real distributable income should be about US$27 million, factoring reduced interest rates and acquistions.

At US$0.52 price per unit/market cap $313 million, this points to 8.5% dividend yield

Sustainable yield (below 100% payout ratio), high yield and consumer resilient tenants in supermarkets, this is turning out to be a good REIT. Based on my cost price, I am earning 10% annual yield on cost.

Prices have gone up, but I am still not selling because it gives 8.5% yield. There are rental escalations built in, this means dividend may keep growing annually.

A good REIT many fund managers have not started buying due to their investment mandate of requiring the REIT to be in tracking indexes. This is hindering fund managers. But as retailers, we are able to purchase it easily and earn 8.5% dividend yield. Eventually fund managers will be forced to buy the REIT when volume picks up

April 2026 Update: Strengthening My Portfolio’s Dividend Power

Over the past week, I have trimmed my position in Nanofilm to take partial profits following its recent share price strength. While I remain constructive on its longer-term prospects, the sharp rebound presented an opportunity to lock in gains and rebalance exposure. As per my previous update, I had sold Alibaba shares amid regulatory uncertainty and a muted consumer recovery in China.

Proceeds from these adjustments have been channelled into NTT DC REIT, primarily for its attractive dividend yield of approximately 7–8%. In the current environment, the ability to generate stable and recurring income is a key priority, and the REIT offers a compelling yield spread relative to other income instruments. This provides a strong foundation for portfolio cash flow while reducing overall volatility.

Beyond yield, NTT DC REIT offers direct exposure to the data centre sector, which is underpinned by powerful structural tailwinds such as cloud adoption, artificial intelligence workloads, and ongoing digitalisation. The quality of its assets, coupled with long-term leases signed with large software companies, supports visibility and resilience of its DPU.

As the year progresses, the portfolio is steadily evolving into a more robust income generator. Dividend contributions are increasing meaningfully, and the $60,000 annual dividend target now appears well within reach.

Dividend

There is no change in the total dividend income received.

Current Portfolio Value is $1,220,400

Dividend

USD:$13,060

HKD:$9,068.61

SGD:$6,507.80

I Took a Loss After 4.5 Years Investing in Alibaba

Today, I sold a partial stake of 1,800 Alibaba HK shares. It marks the end of a position I held for approximately four and a half years — and not in the way I had originally envisioned.

At an average cost of around HKD 142, it’s ironic that after such a long holding period, I still have a realised -1% loss.

What Made Me Decide to Sell

First, Alibaba’s earnings trajectory has largely gone sideways.

Revenue growth has slowed significantly from its earlier high-growth phase, transitioning from rapid expansion into a more mature, slower-growing profile. At the same time, earnings growth has not matched the revenue growth. Despite this, the stock continues to trade at around ~20x price-to-earnings, which is not particularly compelling given the lack of strong growth momentum.

Second, the opprotunity cost of holding Alibaba has been substantial. In Singapore, listed REITs have consistently delivered 5%–7% yields annually, with additional upside from capital appreciation over the past few years. Alibaba has not made much progress. On top of that, capital allocation has been conservative. Buybacks have slowed as the company prioritises AI investments inquiries with Alibaba IR the idea of leveraging low-cost debt to fund more aggressive buybacks while using capital for CAPEX has returned with no interest by the management. It is a signal that Alibaba Management does not feel its shares are too udervalued at current prices. 

Hence, I will be deploying capital to purchase REITs

April 2026 Portfolio Update: Dividend Growing

Since the last update, I have made 03 additional stock acquisitions:

1. Lendlease Global Commercial REIT
   The share price fell below its issue price, presenting an attractive entry point. I accumulated shares at an average price of 0.55, which translates to an approximate dividend yield of 6.4%. This represents a reasonable yield for a REIT of its profile.
2. NTT DC REIT
   I increased my holdings when the share price declined to 0.925. At this level, the stock offers an estimated yield of around 8%, which I consider a strong value proposition.
3. Yangzijiang Financial

I look forward to achieving higher dividend contributions going forward. From a dividend investment perspective, generating annual returns of 6–8% in Singapore is relatively attainable. By looking beyond the large-cap REITs and selectively investing in mid-cap names such as Lendlease Global Commercial REIT and NTT DC REIT, these levels of yield can be achieved.

In my view, such returns compare favourably against many other asset classes in Singapore, while remaining accessible to the average retail investor.

Dividend

There is no change in the total dividend income received.

Current Portfolio Value is $1,163,500

Dividend

USD:$13,060

HKD:$9,068.61

SGD:$6,507.80

If the USA Loses The Iran War, Everything Changes

The headlines today are dominated by the conflict between the United States and Iran, with the critical Strait of Hormuz at risk of closure.

At first glance, this may seem like a distant geopolitical issue. It is not.

What is at stake goes far beyond oil supply. If the U.S. fails to achieve a decisive outcome, it could trigger a structural shift in the global financial system—with consequences reaching even Singapore.

US Loss- Decline of Petrodollar and the USD share in global reserves

Today, most global oil trade is denominated in U.S. dollars—the foundation of the “petrodollar” system.

• Gulf states rely heavily on USD for trade
• Transactions are largely routed through the SWIFT system

However, a perceived U.S. weakening could change incentives.

Countries may:

• Shift oil contracts into the Chinese yuan (RMB)
• Adopt China’s alternative payment system, Cross-Border Interbank Payment System

(Ironically CIPS is faster and cheaper than the West's SWIFT system, just that countries do not want to use it because it is China).

If more countries adopt RMB-based trade: Demand for USD falls, then its share in global reserves declines. Finally the US dollar faces sustained depreciation

This is not unprecedented.

The British Pound Sterling, once the world’s reserve currency, has lost roughly 65% of its value against a basket of currencies over time as it lost its status as the reserve currency.

How it Affects Singapore

Singapore is not insulated from this.

Singapore holds substantial USD-denominated assets, while most liabilities are in Singapore dollars (SGD)

This creates an asset-liability mismatch

If USD depreciates against SGD, the value of our national assets decline, while our liabilities remain unchanged. This erodes balance sheet strength.

As Singapore's government can issue SGD, default risk is low to none. But the trade-off is the potential increase in money supply. More money chasing the same amount of good results in persistent inflation in our country.

The U.S.–Iran conflict is not merely a geopolitical flashpoint—it is a potential inflection point in the global monetary order. Even a gradual shift away from U.S. dollar dominance could reshape trade flows, reprice financial assets, and transmit inflationary pressures across economies tied to the dollar system. For countries like Singapore, which hold substantial USD-denominated assets, the effects may not be immediate but could prove deeply consequential over time. What appears distant today may ultimately surface in more tangible ways—through higher costs of living for Singaporeans.