Most Reits' DPU paid out of operations
Religare study questions sustainability of payouts that are propped up by capital and other means
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Singapore
A HEALTHY 91 per cent of distributions from Singapore Reits (S-Reits) on average comes from operations, contrary to the belief that distributions are increasingly artificially supported by capital and other means. This is according to findings from a study done by Religare Institutional Research.
In fact, only four Reits used capital - mostly comprising divestment proceeds - to prop up their dividend payout in FY14 and FY15. They are Cache Logistics Trust, Mapletree Logistics Trust, Keppel Reit and Suntec Reit.
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