Broker: OCBC Investment Research
Date of Report: 1 September 2025
Singapore REITs Poised for Growth: Full Sector Analysis, Top Picks, and Latest Developments
Introduction: Singapore REITs at an Inflection Point
Singapore’s real estate investment trusts (S-REITs) are showing signs of renewed momentum after a period of underperformance relative to the broader market. According to the latest sector update, share prices of S-REITs have rebounded in line with global equities, yet have lagged the broader Singapore index. Soft 2Q25 results have set the stage for what analysts believe could be a turning point, with distribution per unit (DPU) forecasted to rise by an average of 4.0% across covered S-REITs in the upcoming financial year. Sector valuations remain attractive, and several REITs are highlighted as top picks for investors seeking growth and stability.
Key Developments Shaping the Singapore REIT Landscape
- CapitaLand Ascott Trust (CLAS) acquired three freehold rental properties in Japan for JPY4 billion (SGD34.2 million), expected to boost FY24 DPS by 0.3%.
- CapitaLand Investment received regulatory approval for CapitaLand Commercial C-REIT (CLCR) to list on the Shanghai Stock Exchange with a projected SGD375 million capital raise by 4Q25.
- CapitaLand Integrated Commercial Trust (CICT) completed its acquisition of the remaining 55% stake in CapitaSpring.
- OUE REIT secured SGD830 million in loan facilities, reducing its cost of debt by ~10bps to 4.1% and extending average debt maturity to 2.9 years.
- Frasers Centrepoint Trust (FCT) announced the divestment of ten strata lots at Yishun 10 for SGD34.5 million, planning to use proceeds to pare down debt and strengthen financials.
Market Performance and Valuations: S-REITs vs. STI
The FTSE ST REIT Index climbed 2.0% week-on-week versus a 0.4% gain for the Straits Times Index (STI). Valuations remain undemanding: the 12-month forward price-to-book (P/B) multiple for S-REITs stands at 0.85x, below the 8-year average of 0.97x, while forward distribution yield is at 6.2%, above the historical average of 6.1%.
| Index |
1W Change |
12M Fwd P/B |
8Y Avg P/B |
12M Fwd Yield |
8Y Avg Yield |
| FTSE ST REIT Index |
+2.0% |
0.85x |
0.97x |
6.2% |
6.1% |
| Straits Times Index |
+0.4% |
N/A |
N/A |
N/A |
N/A |
Peer Comparison: In-Depth Analysis of Singapore REITs by Sector
Below is a comprehensive breakdown and comparison of listed S-REITs across Office, Retail, Industrial, Hospitality, Healthcare, Data Centre, and Other sectors. Metrics include price, market cap, distribution yield, debt-to-asset ratios, price-to-book multiples, and year-to-date returns.
| Sector |
REIT |
Price |
Market Cap (\$m) |
Curr Yield (%) |
Fwd Yield (%) |
YTD Return (%) |
D/A (%) |
P/B (x) |
| Office |
Keppel REIT |
SGD 0.975 |
3,793.0 |
5.5 |
5.8 |
19.2 |
41.7 |
0.81 |
| Office |
Suntec REIT |
SGD 1.320 |
3,883.3 |
4.8 |
5.1 |
17.5 |
41.1 |
0.66 |
| Retail |
CapitaLand Integrated Comm |
SGD 2.280 |
17,331.4 |
4.8 |
5.2 |
23.9 |
37.9 |
1.07 |
| Retail |
Frasers Centrepoint Trust |
SGD 2.330 |
4,728.3 |
5.2 |
5.3 |
13.8 |
42.8 |
1.04 |
| Industrial |
AIMS APAC REIT |
SGD 1.350 |
1,102.9 |
7.2 |
7.3 |
14.2 |
28.9 |
1.11 |
| Industrial |
Mapletree Industrial Trust |
SGD 2.060 |
5,876.3 |
6.3 |
6.4 |
-2.1 |
40.1 |
1.22 |
| Hospitality |
CapitaLand Ascott Trust |
SGD 0.885 |
3,385.1 |
6.9 |
7.0 |
8.9 |
39.6 |
0.79 |
| Healthcare |
Parkway Life REIT |
SGD 4.220 |
2,753.4 |
3.6 |
4.3 |
15.3 |
35.4 |
1.73 |
| Data Centre |
Keppel DC REIT |
SGD 2.360 |
5,326.6 |
4.3 |
4.7 |
11.1 |
30.0 |
1.49 |
Note: Table displays selected highlights. Full sector details available in the report.
Top Picks and Tactical Opportunities
The following S-REITs are highlighted as analyst favorites:
- CapitaLand Integrated Commercial Trust (CICT) – SGD2.52 fair value
- Keppel DC REIT – SGD2.59 fair value
- Parkway Life REIT – SGD4.85 fair value
- Mapletree Logistics Trust (MLT) – SGD1.46 fair value, recommended for tactical trading
- Parkway Life REIT, CapitaLand India Trust, and OUE REIT may also benefit from the equity market development program
Distribution Dates: Upcoming Payouts for S-REIT Investors
Stay updated on upcoming distribution dates for several major S-REITs:
| REIT |
DPU (cents) |
Ex-Date |
Pay Date |
| OUE REIT |
0.980 |
30 Jul 2025 |
3 Sep 2025 |
| Mapletree Industrial Trust |
3.270 |
4 Aug 2025 |
8 Sep 2025 |
| Parkway Life REIT |
7.650 |
13 Aug 2025 |
9 Sep 2025 |
| Mapletree Logistics Trust |
1.812 |
30 Jul 2025 |
10 Sep 2025 |
Geographical Exposure: Portfolio Diversification by Region
Singapore REITs vary widely in their geographical asset allocation, offering investors opportunities across Asia, Europe, the US, and Australia.
| REIT |
Singapore |
China |
Rest of Asia |
Australia/NZ |
UK |
Europe |
US |
| Keppel REIT |
79% |
– |
4% |
18% |
– |
– |
– |
| Frasers Centrepoint Trust |
100% |
– |
– |
– |
– |
– |
– |
| Mapletree Industrial Trust |
48% |
– |
7% |
– |
– |
– |
46% |
Note: Table displays selected highlights. Full sector details available in the report.
Weekly Performance: Sector Winners and Laggards
Office REITs led weekly sector performance (+2.7%), followed by Industrial (+2.2%) and Healthcare (+2.2%). Data Centres (+1.7%) and Hospitality (+1.5%) also showed positive momentum, while ‘Others’ posted modest gains (+0.6%).
| Sector |
Weekly Return (%) |
| Office |
2.7 |
| Industrial |
2.2 |
| Healthcare |
2.2 |
| Retail |
1.8 |
| Data Centre |
1.7 |
| Hospitality |
1.5 |
| Others |
0.6 |
Comprehensive Coverage: Analyst Ratings and Fair Values
Below are the latest analyst ratings, fair values, and next results release dates for all covered REITs:
| REIT |
Ticker |
Price |
Fair Value |
Rating |
Next Results Release |
| CapitaLand Ascott Trust |
CLAS SP |
SGD 0.885 |
1.02 |
BUY |
28/10/2025 |
| Frasers Centrepoint Trust |
FCT SP |
SGD 2.33 |
2.58 |
BUY |
23/10/2025 |
| Keppel DC REIT |
KDCREIT SP |
SGD 2.36 |
2.59 |
BUY |
24/10/2025 |
| Parkway Life REIT |
PREIT SP |
SGD 4.22 |
4.85 |
BUY |
16/10/2025 |
| Mapletree Logistics Trust |
MLT SP |
SGD 1.22 |
1.46 |
BUY |
20/10/2025 |
Note: Table displays selected highlights. Full sector details available in the report.
Conclusion: S-REITs Offer Value, Diversification, and Upside Potential
Singapore REITs are at a promising juncture, with rising DPUs, undemanding valuations, and diversified portfolios across geographies and asset classes. Top picks such as CapitaLand Integrated Commercial Trust, Keppel DC REIT, Parkway Life REIT, and Mapletree Logistics Trust stand out for their growth prospects, stable yields, and proactive management strategies. For investors and analysts monitoring the Singapore real estate market, these insights and data offer a robust foundation for making well-informed investment decisions in the months ahead.
