Broker Name: OCBC Investment Research
Date of Report: 10 November 2025
Excerpt from OCBC Investment Research report.
Report Summary:
- Singapore S-REITs saw mixed performance in recent results, with several REITs reporting lower year-on-year distribution per unit (DPU) due to higher debt costs and asset divestments, but some, like Parkway Life REIT and Elite UK REIT, still met or exceeded expectations.
- Sector trends show office and data centre REITs holding steady, while retail, industrial, healthcare, and hospitality REITs generally saw mild to moderate declines, reflecting broader market challenges and differing geographic exposures.
- FTSE ST REIT Index declined 0.8% week-on-week, underperforming the STI’s 1.4% gain; average 12-month forward yield for S-REITs is 5.8%, slightly below the 8-year average.
- Peer comparison highlights varied current and forward yields across sectors, ranging from 3.8% to 10%+, with average debt-to-asset ratios around 40% and price-to-book ratios averaging 0.85x.
- Recent developments include strategic leasing, asset divestments, and capital management efforts among REIT managers, with distribution details and upcoming results release dates provided for major trusts.
- Geographical breakdown shows Singapore-based REITs remain domestically focused, with select trusts having significant overseas exposure, especially in the UK, Europe, and US.
- OCBC’s ratings and recommendations are based on expected returns, with BUY indicating returns in excess of 10% (or 30% for smaller caps), HOLD for moderate returns, and SELL for negative returns, including dividends for REITs and Business Trusts.
Above is an excerpt from a report by OCBC Investment Research. Clients of OCBC Investment Research can be the first to access the full report from the OCBC Investment Research website : https://www.ocbcresearch.com/
