Broker Name: OCBC Investment Research Private Limited
Date of Report: 11 August 2025

Singapore REITs Weekly Tracker: Key Sector Developments, Peer Comparisons & Distribution Updates (Aug 2025)

Sector Overview: S-REITs Show Resilience and Growth

Singapore REITs (S-REITs) exhibited steady performance in the week ending 11 August 2025, with the FTSE ST REIT Index rising 1.1% week-on-week, trailing the Straits Times Index (STI) which gained 2.1%. Sector optimism was driven by solid distribution per unit (DPU) growth and active capital management, as indicated by several major announcements.

Key Developments: Mergers, Divestments, and Capital Raising

• Parkway Life REIT (PLIFE): 1H25 DPU grew 1.5% YoY to 7.65 Singapore cents, prompting an upward revision in FY25 and FY26 DPU forecasts by 1.3% and 0.1%, respectively. Cost of equity assumption was lowered by 13 bps to ~5.7%, resulting in a fair value estimate increase from SGD 4.65 to SGD 4.85.
• CapitaLand Integrated Commercial Trust (CICT): Recorded a 3.5% YoY increase in 1H25 DPU to 5.62 Singapore cents, outperforming expectations. Announced acquisition of the remaining 55% interest in CapitaSpring at a property value of SGD 1.9b. FY25 and FY26 DPU forecasts raised by 2.9% and 3.8%; fair value estimate increased from SGD 2.35 to SGD 2.52.
• CICT Private Placement: Exercise was heavily oversubscribed (~4.9 times including upsize, ~5.9 times excluding upsize), issuing 284.4m new units at SGD 2.11 each, raising SGD 600m.
• Lendlease Global Commercial REIT (LREIT): Divestment of its Jem office leasehold in 4Q25 for SGD 462m aligns with independent valuation. Net proceeds of SGD 459.4m to repay debt, reducing gearing from 42.6% to ~35%. Estimated net cash gain of SGD 8.9m may be distributed; FY25 DPU would have been 2.2% lower on a pro forma basis.
• United Hampshire REIT (UHREIT): Acquired Dover Marketplace (Pennsylvania, US) for USD 16.4m, 4.8% below valuation. Total cost of ~USD 17.0m funded by earlier divestment. Pro forma FY24 DPU down 0.7% to 4.03 US cents, or up 2.0% after Albany divestment; NAV flat at 75 US cents as at 31 Dec 2024.

Price Performance & Valuation Metrics

The iEdge S-REIT Index 12-month forward price-to-book (P/B) multiple stands at 0.85x, below the 8-year average of 0.97x, with a forward yield of 6.2%. Sector performance highlights healthcare (+3.5%), office (+3.2%), retail (+2.5%), and data centre (+0.5%) REITs outpacing industrial (-0.2%) and hospitality (-1.4%).

Peer Comparison Table: Singapore REITs Snapshot

Retail REITs: Robust DPUs and Steady Growth

• BHG Retail REIT: No DPU reported; YTD return -5.1%; D/A 41.7%; P/B 0.65x.
• CapitaLand Integrated Commercial Trust: Current DPU 11.00 cents, forward 11.80; yield 4.9/5.2%; YTD return 19.1%.
• CapitaLand China Trust: DPU 5.10/5.20 cents; yield 7.0/7.2%; YTD return 8.2%.
• Frasers Centrepoint Trust: DPU 12.10/12.30 cents; yield 5.4/5.5%; YTD return 9.4%.
• Lendlease Global Commercial REIT: DPU 3.70/3.90 cents; yield 6.4/6.8%; YTD return 8.2%.
• Lippo Malls Indo Retail Trust: No DPU reported; YTD return -11.1%; D/A 43.9%; P/B 0.31x.
• Starhill Global REIT: DPU 3.80/3.80 cents; yield 7.1%; YTD return 14.8%.
• Sasseur REIT: DPU 6.00/6.20 cents; yield 8.8/9.1%; YTD return 5.2%.
• United Hampshire US REIT: DPU 4.40/4.90 US cents; yield 9.3/10.3%; YTD return 4.4%.

Retail REITs averaged a forward yield of 7.2%, with moderate leverage and stable price-to-book ratios.

Industrial REITs: Opportunities in Logistics and Tech

• AIMS APAC REIT: DPU 9.70/9.90 cents; yield 7.2/7.3%; YTD return 14.2%.
• ESR-REIT: DPU 21.20/21.70 cents; yield 7.9/8.0%; YTD return 11.5%.
• Mapletree Industrial Trust: DPU 12.90/13.10 cents; yield 6.5/6.6%; YTD return -5.4%.
• Mapletree Logistics Trust: DPU 7.20/7.40 cents; yield 6.2/6.4%; YTD return -4.2%.
• Sabana REIT: No DPU reported; YTD return 20.6%; D/A 37.7%; P/B 0.80x.
• Daiwa House Logistics Trust: DPU 4.90/4.80 cents; yield 8.4/8.3%; YTD return 4.1%.

The industrial segment boasted an average forward yield of 7.0% and moderate leverage, underscoring its attractiveness for yield-focused investors.

Hospitality REITs: Recovery and Expansion

• Acrophyte Hospitality Trust: DPU 1.70/1.80 US cents; yield 5.9/6.2%; YTD return 50.7%.
• CapitaLand Ascott Trust: DPU 6.10/6.20 cents; yield 7.0/7.1%; YTD return 7.7%.
• CDL Hospitality Trusts: DPU 4.70/5.20 cents; yield 6.0/6.6%; YTD return -3.2%.
• Far East Hospitality Trust: DPU 3.70/3.70 cents; yield 6.4%; YTD return 2.3%.

Hospitality REITs reported strong average forward yields of 6.6%, with Acrophyte Hospitality Trust leading in YTD returns.

Healthcare & Data Centre REITs: Defensive and Growth Plays

• First REIT: DPU 2.30/2.50 cents; yield 8.4/9.1%; YTD return 12.8%.
• Parkway Life REIT: DPU 15.30/18.00 cents; yield 3.7/4.4%; YTD return 10.8%.
• Keppel DC REIT: DPU 10.10/11.00 cents; yield 4.4/4.8%; YTD return 8.8%.
• Digital Core REIT: DPU 3.60/3.60 US cents; yield 6.9%; YTD return -4.3%.
• NTT DC REIT: No DPU reported; D/A 35.0%; P/B 0.99x.

Healthcare REITs averaged 6.7% forward yield, while data centre REITs posted 5.8%. Parkway Life and Keppel DC REITs remain sector favourites.

Other Trusts: Infrastructure, Ports, and Business Trusts

• CapitaLand India Trust: DPU 7.30/8.20 cents; yield 6.4/7.2%; YTD return 9.9%.
• Keppel Infrastructure Trust: DPU 4.00 cents; yield 9.4%; YTD return 1.6%.
• NetLink NBN Trust: DPU 5.40/5.40 cents; yield 6.0%; YTD return 6.6%.
• Hutchison Port Holdings: DPU 1.53/1.57 US cents; yield 7.3/7.5%; YTD return 39.8%.

Infrastructure and port trusts maintained healthy yields, with Keppel Infrastructure Trust showing a notably high P/B ratio of 3.10x.

Weekly Performance Leaders & Laggards

Distribution Updates: Upcoming Payouts

Key REITs with upcoming distributions include Keppel Infrastructure Trust, IREIT Global, CapitaLand Ascott Trust, CDL Hospitality Trusts, Suntec REIT, Sabana REIT, OUE REIT, Mapletree Industrial Trust, Parkway Life REIT, Mapletree Logistics Trust, ESR-REIT, Keppel DC REIT, CICT, Digital Core REIT, Elite UK REIT, AIMS APAC REIT, CapitaLand China Trust, Lendlease Global Comm. REIT, Starhill Global REIT, First REIT, Far East Hospitality Trust, Acrophyte Hospitality Trust, BHG Retail REIT, and Daiwa House Logistics Trust. Distribution dates range from mid-August to late September 2025.

Geographical Asset Allocation: Diversification Across Borders

REITs continue to provide diversified exposure across Singapore, Asia Pacific, UK, Europe, and the US, enhancing portfolio resilience and growth prospects.

Coverage Universe: Ratings and Fair Value Estimates

Conclusion: S-REITs Outlook Remains Promising

The Singapore REIT sector continues to demonstrate resilience through distribution growth, active capital management, and strategic asset allocation. Key outperformers in the week include OUE REIT, Suntec REIT, and Parkway Life REIT, while the sector as a whole remains well-diversified across geographies and asset classes. Investors can look forward to ongoing opportunities in both defensive and growth-oriented REITs as Singapore cements its position as a leading REIT hub.