🏢 Resilient, Rebounding, or Ripe for Buyout? Singapore’s S-Reits Show Three Paths to Growth in 2025

In a year marked by economic uncertainty, mixed consumption trends, and shifting investor sentiment, Singapore’s real estate investment trust (S-Reit) market is undergoing transformation on multiple fronts. From robust retail S-Reits in Singapore, to cautious optimism for China-exposed trusts, and a looming wave of privatisations, the landscape is evolving rapidly. Analysts remain cautiously bullish — and here’s why.

🏬 Singapore Retail S-Reits: High Occupancy, Rent Reversions, and Expansion Drive
Despite modest retail sales growth (1.2% in 2024, down from 2.3% in 2023) and some tenant exits, Singapore’s retail S-Reits have held strong, thanks to near-full occupancies, positive rental reversions (up 5% to 9%), and strategic acquisitions.

SGX: J69U
Frasers Centrepoint Trust (FCT) made headlines with its S$1.17 billion acquisition of Northpoint City’s South Wing. With nine suburban malls, FCT now commands one of the largest suburban retail portfolios in Singapore. Its FY2024 DPU hit S$0.12042 (5.7% yield), while occupancy rose to 99.5%, shopper traffic increased 2.7%, and tenant sales grew 2.5%. Analysts expect a 2% boost to FY2026 DPU, calling the deal a long-term win.

SGX: C38U
CapitaLand Integrated Commercial Trust (CICT) continued to shine, delivering a 1.2% rise in FY2024 DPU to S$0.1088 (5.6% yield). The trust posted 9% rent reversions in suburban assets and 8.6% downtown, thanks to strong leasing demand. CICT’s 99.3% occupancy, and acquisitions like Ion Orchard, have drawn bullish calls from DBS (S$2.30 target) and HSBC (S$2.25 target).

SGX: P40U
Starhill Global REIT, which owns Wisma Atria and Ngee Ann City, posted a 7.3% yield in FY2024, supported by a 5% rent reversion and a 10.3% increase in shopper traffic at Wisma Atria. With recent tenant upgrades, including Burberry and Tod’s, the Reit’s performance remains on track, with analysts maintaining a “buy” rating and target price of S$0.57.

Industry leaders including Savills, CBRE, and JLL note that retail assets are becoming increasingly attractive as interest rates ease. Analysts expect asset yields to remain steady through 2025, driven by robust investor interest in suburban malls and iconic freehold properties.

🇨🇳 China-Exposed S-Reits: Navigating Headwinds with Optimism
Retail S-Reits with properties in China and Hong Kong delivered mixed 2024 results, but early signs of a recovery in consumption and ongoing policy support from Beijing provide a cautiously optimistic outlook for 2025.

SGX: AU8U
CapitaLand China Trust (CLCT) saw FY2024 net property income dip 5.8% to 1.2 billion yuan, largely due to lower logistics and business park contributions. However, its retail NPI grew 1.9% on a like-for-like basis, and malls enhanced in 2023 posted a 13.7% NPI jump. Retail occupancy stood at a healthy 98.2%, even as rental reversion was -1.1%.

SGX: CRPU
Sasseur REIT, which owns four outlet malls in China, maintained stable income and hit a record 98.9% occupancy in FY2024, despite weaker sales at its Hefei outlet (down 5.9% after earthquakes). Encouragingly, Chinese New Year 2025 brought double-digit sales growth, and the manager remains optimistic about long-term demand driven by consumption policies.

SGX: N2IU
Mapletree Pan Asia Commercial Trust (MPACT) saw its Hong Kong asset, Festival Walk, post strong Q3 FY2025 numbers — shopper traffic up 15.6%, tenant sales up 13.1%. However, rental reversion was -7.2% year-to-date. Occupancy improved to 97.1%, and despite challenges like outbound travel and shifting spending patterns, management is confident in Greater China’s future.

SGX: BMGU
BHG Retail Reit posted a 16.3% jump in FY2024 DPU, backed by lower financing costs and 95.8% occupancy. Its focus remains on tenant mix optimisation and accretive acquisitions.

CBRE forecasts 5% retail sales growth in China for 2025, with vacancy rates expected to fall post-peak supply. That said, short-term rent pressure may linger until consumer confidence fully recovers.

🔒 Privatisation Watch: Smaller, Overseas-Focused S-Reits in the Crosshairs
As interest rates stay higher for longer, market watchers expect privatisation activity to pick up, especially among underperforming, low-liquidity, overseas-heavy S-Reits. Despite recent Fed cuts, a pause in easing — amid persistent inflation — keeps the cost of capital high, increasing pressure on smaller trusts.

SGX: SK6U
Paragon REIT is a clear example. In early 2025, Cuscaden Peak’s Times Properties proposed a S$0.98-per-unit privatisation, citing low liquidity and upcoming asset enhancement needs.

SGX: ACV, 8U7U
Analysts have flagged Frasers Hospitality Trust (ACV.SI) and IReit Global (8U7U.SI) as likely candidates. FHT almost went private two years ago, while IReit trades at a steep discount to NAV, weighed down by its Europe-centric portfolio.

According to EY’s Lee Wei Hock, privatisation could allow sponsors to reposition, consolidate, and re-list Reits later. Deloitte’s Tay Hwee Ling added that Reits with limited pipeline and foreign currency exposure face greater challenges.

🔎 Market Outlook: A Sector in Transition
While some S-Reits may exit the public market, others are doubling down on core assets, acquisitions, and capital recycling to drive long-term returns.

According to Phillip Securities’ Liu Miaomiao, the market isn’t facing a shakeout but a healthy consolidation phase, where larger, better-managed Reits emerge stronger. The sector is becoming more streamlined, resilient, and quality-driven.

💼 Bottom Line
Whether it’s suburban Singapore malls outperforming, China assets recovering, or smaller Reits heading toward privatisation, S-Reits are adapting to a new normal. With solid fundamentals, active portfolio management, and interest from both retail and institutional investors, the S-Reit sector remains a cornerstone of yield-focused investing — and a compelling space to watch in 2025.

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