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.
How can I invest in CapitaLand Ascendas REIT?
To invest in CapitaLand 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
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 CapitaLand Ascendas REIT?
Yes, you may use up to 35% of the investible savings in your CPF ordinary account.
Are the distributions/earnings in CapitaLand Ascendas REIT guaranteed?
Unlike bonds, CapitaLand Ascendas REIT's earnings or distributions are not guaranteed. However, the yield for CapitaLand 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 CapitaLand Ascendas REIT units until maturity?
There is no maturity date for CapitaLand Ascendas REIT units. Investors in CapitaLand Ascendas REIT may buy or sell their units through the Singapore Exchange via their brokers.
What is CapitaLand Ascendas REIT's annual financial period?
CapitaLand Ascendas REIT's annual financial period begins on 1 January and ends on 31 December. Prior to 31 March 2019, CapitaLand Ascendas REIT’s financial period began on 1 April and ended on 31 March.
When is CapitaLand Ascendas REIT's distribution?
CapitaLand 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 CapitaLand Ascendas REIT's stock code and stock symbol?
CapitaLand Ascendas REIT stock code is CapitaLand Asc Reit and stock symbol is A17U.
With effect from 31 March 2003, CapitaLand Ascendas REIT is available for trading through SGX's co-trading link with the Australian Stock Exchange (ASX).
What is the total number of CapitaLand Ascendas REIT units in issue?
A total of 4,197,929,792 Units are on issue as at 31 December 2021. For the latest issued and paid-up units, please refer to https://investor.capitaland-ascendasreit.com/stock-fundamentals.html