Investors looking for high yielding yet stable investments in Asia would have done splendidly well should they have put their money in Singapore REITs over the past year.

FTSE ST REIT Index trumped the rest of regional indexes in dividend yield.

This is according to data compiled by Singapore Exchange (SGX:S68) which shows that FTSE ST REIT Index maintained a dividend yield of 5.32 per cent and twelve-month historical volatility level of 8.41 per cent - highest of the comparative regional indices. In addition, the volatility of the FTSE ST REIT Index was almost half the volatility shown by the FTSE EPRA/NAREIT Hong Kong REIT Index.

Moreover in the past 12 months, the FTSE ST REITs Index generated a total return of +40.5%.

The next best performer in the region this past 12 months is Australia which shows the FTSE EPRA/NAREIT Australia REITs Index returning a dividend yield of 5.07 per cent on a twelve-month historical volatility level of 11.96 per cent.

Singapore REITs look set to take the limelight again this year with the entry of a keenly anticipated debut, government-backed Mapletree Greater China Commercial Trust, the largest REIT to list on the SGX yet. On top of that rumours of several other impending REITs, including by the owners of Crowne Plaza Hotel in Singapore, make the S-REIT scene a one to watch for the rest of 2013.

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.