JP Morgan Turns Bullish on S-REITs, Sees Rate Tailwinds Ahead
SGX:C09.SI:City Developments
SGX:N2IU.SI:Mapletree Pan Asia Commercial Trust
SGX:T82U.SI:Suntec REIT
SGX:C38U.SI:CapitaLand Integrated Commercial Trust
SGX:A17U.SI:CapitaLand Ascendas REIT
SGX:J69U.SI:Frasers Centrepoint Trust
SGX:AJBU.SI:Keppel DC REIT
SGX:J85.SI:CDL Hospitality Trusts
SGX:ME8U.SI:Mapletree Industrial Trust
Developers and S-REITs posted strong gains in August, rising 4.3% and 3.8% respectively (including distributions), according to JP Morgan. Both outpaced the Straits Times Index (+3.7%) but trailed the MSCI Singapore Index (+5.8%). The rally was driven by falling local interest rates ahead of expected U.S. Fed cuts.
The 3-month compounded SORA fell sharply to 1.531% on Sept 4 from 3.0346% at the start of the year, underpinning sector momentum. Office REITs surged 9.8% to lead gains, while Industrial REITs lagged with a 1.3% rise.
Looking into 4Q2025, JP Morgan struck a more positive tone on Singapore property and REITs, citing “greater interest rate tailwinds.” The bank highlighted City Developments for value unlock potential, Mapletree Pan Asia Commercial Trust for stabilisation after three years of decline, and Suntec REIT for earnings recovery.
Other top picks include CapitaLand Integrated Commercial Trust, CapitaLand Ascendas REIT, Frasers Centrepoint Trust, and Keppel DC REIT. However, JP Morgan advised avoiding CDL Hospitality Trusts and Mapletree Industrial Trust on concerns of further earnings disappointment.
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