Blog Post  Opportunity for LION-PHILLIP S-REIT?

It was recently announced that Singapore REIT ETFs are no longer subjected to 17% corporate tax on their S-REITs distributions. This will apply from 1 July 2018 onwards. (http://www.businesstimes.com.sg/government-economy/singapore-budget-2018/singapore-budget-2018-tax-transparency-to-apply-for-s-reit)

There are 3 REIT ETFs listed in SGX:

  1. PHIL AP DIV REIT S$D (BYJ.SI)
  2. NikkoAM-STC Asia REIT (CFA.SI)
  3. LION-PHILLIP S-REIT (CLR.SI)

The LION-PHILLIP S-REIT etf stands to benefit the most as their universe are only S-REITS. The other 2 ETFs have Australian REITs that still have to pay 15% withholding tax of the DPU paid.

LION-PHILLIP S-REIT pays dividends 2x a year, and will have their first XD on 2nd Mar 2018. At the current price, their dividend yield is expected to be 4.6% after tax and management fee.

With the new change, will their future dividend yield be 4.6% x 1.17 = 5.38%? When will their ...



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