OCBC Investment Research
Date of Report: 1 September 2025
Singapore REITs 2025 Outlook: Sector Recovery, Top Picks, and Key Developments

Introduction: Singapore REITs Reaching a Turning Point

Singapore Real Estate Investment Trusts (S-REITs) have demonstrated resilience, with share prices rebounding alongside global equities. Despite this, the sector continues to underperform the broader Singapore market. Second-quarter 2025 results have remained soft, but analysts from OCBC Investment Research expect an inflection point, forecasting a 4.0% average increase in distribution per unit (DPU) for FY2 across S-REITs under coverage. Sector valuations are described as undemanding, presenting tactical and long-term opportunities for investors.

Key Sector Takeaways

• Share prices of S-REITs have rebounded, but still trail the broader STI index.
• Average DPU growth forecasted at 4.0% for FY2.
• Sector valuations remain attractive, with forward yields above long-term averages.
• Top S-REIT picks: CapitaLand Integrated Commercial Trust, Keppel DC REIT, Parkway Life REIT, and Mapletree Logistics Trust as a tactical play.
• Certain trusts may benefit from new equity market development programs.

Recent Developments Shaping the S-REIT Landscape

• CapitaLand Ascott Trust (CLAS) acquired three freehold rental housing properties in Japan for JPY4 billion (SGD34.2 million), with a pro forma accretion to FY24 DPS of 0.3%.
• CapitaLand Investment received approval from the China Securities Regulator Commission for registering CapitaLand Commercial C-REIT’s listing in Shanghai, targeting to raise ~CNY2.1 billion (SGD375 million) by 4Q25 through 400 million units.
• CapitaLand Integrated Commercial Trust (CICT) completed its acquisition of the remaining 55% interest in CapitaSpring.
• OUE REIT secured SGD830 million in loan facilities for early refinancing, lowering its weighted average cost of debt by ~10bps to 4.1% and extending the weighted average term of debt from 2.7 to 2.9 years.
• Frasers Centrepoint Trust (FCT) announced a divestment of ten strata lots at Yishun 10 for SGD34.5 million, using net proceeds to reduce debt and strengthen its financial position.

Market Performance and Valuation Metrics

The FTSE ST REIT Index rose 2.0% week-on-week, outpacing the Straits Times Index’s (STI) 0.4% rise.

Comprehensive Peer Comparison: S-REITs by Sub-Sector

Performance Highlights: Weekly Top and Bottom Performers

• Top Weekly Performer: IREIT Global (+10.2%)
• Other Notables: Manulife US REIT (+7.0%), Keppel Pacific Oak US REIT (+4.8%), Suntec REIT (+3.9%), Frasers Centrepoint Trust (+3.6%)
• Bottom Weekly Performer: IREIT Global (-1.8%)
• Other Laggards: NTT DC REIT (-0.5%), BHG Retail REIT, Stoneweg Europe Stapled Trust, First REIT (all flat)

Detailed Company Analysis: Sector Leaders and Key Trusts

Office S-REITs

• Keppel REIT: SGD0.975/share, 5.8% forward yield, D/A 41.7%, P/B 0.81x. YTD return: 19.2%.
• Suntec REIT: SGD1.32/share, 5.1% forward yield, D/A 41.1%, P/B 0.66x. YTD return: 17.5%.
• OUE REIT: SGD0.335/share, 6.3% forward yield, D/A 40.3%, P/B 0.59x. YTD return: 26.4%.
• IREIT Global: SGD0.275/share, 8.2% forward yield, D/A 41.1%, P/B 0.47x. YTD return: 5.5%.
• Prime US REIT: USD0.184/share, 9.2% forward yield, D/A 46.7%, P/B 0.33x. YTD return: 9.2%.
• Keppel Pacific Oak US REIT: USD0.220/share, not meaningful DPU, D/A 43.7%, P/B 0.31x. YTD return: 7.3%.
• Elite UK REIT: GBP0.350/share, 8.9% forward yield, D/A 40.7%, P/B 0.88x. YTD return: 30.4%.
• Manulife US REIT: USD0.076/share, not meaningful DPU, D/A 57.4%, P/B 0.36x. YTD return: -14.6%.

Retail S-REITs

• CapitaLand Integrated Commercial Trust (CICT): SGD2.28/share, 5.2% forward yield, D/A 37.9%, P/B 1.07x. YTD return: 23.9%.
• CapitaLand China Trust: SGD0.75/share, 6.9% forward yield, D/A 42.1%, P/B 0.72x. YTD return: 11.9%.
• Frasers Centrepoint Trust: SGD2.33/share, 5.3% forward yield, D/A 42.8%, P/B 1.04x. YTD return: 13.8%.
• Lendlease Global Commercial REIT: SGD0.60/share, 6.5% forward yield, D/A 42.6%, P/B 0.80x. YTD return: 16.5%.
• Mapletree Pan Asia Commercial Trust: SGD1.38/share, 5.9% forward yield, D/A 37.9%, P/B 0.79x. YTD return: 19.6%.
• Starhill Global REIT: SGD0.545/share, 7.0% forward yield, D/A 36.0%, P/B 0.77x. YTD return: 17.0%.
• Sasseur REIT: SGD0.70/share, 8.9% forward yield, D/A 25.8%, P/B 0.90x. YTD return: 7.5%.
• United Hampshire US REIT: USD0.495/share, 9.9% forward yield, D/A 38.9%, P/B 0.67x. YTD return: 13.4%.
• BHG Retail REIT: SGD0.43/share, D/A 41.7%, P/B 0.66x. YTD return: -3.5%.
• Lippo Malls Indonesia Retail Trust: SGD0.017/share, D/A 43.9%, P/B 0.33x. YTD return: -5.6%.

Industrial S-REITs

• Mapletree Logistics Trust: SGD1.22/share, 6.1% forward yield, D/A 41.2%, P/B 0.97x. YTD return: 0.8%.
• Mapletree Industrial Trust: SGD2.06/share, 6.4% forward yield, D/A 40.1%, P/B 1.22x. YTD return: -2.1%.
• Frasers Logistics & Commercial Trust: SGD0.91/share, 6.4% forward yield, D/A 36.8%, P/B 0.84x. YTD return: 7.3%.
• ESR-REIT: SGD2.74/share, 7.9% forward yield, D/A 42.6%, P/B 1.03x. YTD return: 13.2%.
• AIMS APAC REIT: SGD1.35/share, 7.3% forward yield, D/A 28.9%, P/B 1.11x. YTD return: 14.2%.
• Daiwa House Logistics Trust: SGD0.57/share, 8.2% forward yield, D/A 40.7%, P/B 0.83x. YTD return: 6.4%.
• Sabana REIT: SGD0.42/share, D/A 37.7%, P/B 0.84x. YTD return: 26.6%.

Hospitality S-REITs

• CapitaLand Ascott Trust: SGD0.885/share, 7.0% forward yield, D/A 39.6%, P/B 0.79x. YTD return: 8.9%.
• CDL Hospitality Trusts: SGD0.795/share, 6.5% forward yield, D/A 42.0%, P/B 0.55x. YTD return: -2.0%.
• Far East Hospitality Trust: SGD0.59/share, 6.3% forward yield, D/A 32.8%, P/B 0.66x. YTD return: 4.1%.
• Acrophyte Hospitality Trust: USD0.305/share, 5.9% forward yield, D/A 42.4%, P/B 0.44x. YTD return: 60.8%.

Healthcare S-REITs

• Parkway Life REIT: SGD4.22/share, 4.3% forward yield, D/A 35.4%, P/B 1.73x. YTD return: 15.3%.
• First REIT: SGD0.275/share, 9.1% forward yield, D/A 41.2%, P/B 1.03x. YTD return: 15.1%.

Data Centre S-REITs

• Keppel DC REIT: SGD2.36/share, 4.7% forward yield, D/A 30.0%, P/B 1.49x. YTD return: 11.1%.
• Digital Core REIT: USD0.51/share, 7.1% forward yield, D/A 38.3%, P/B 0.64x. YTD return: -6.2%.
• NTT DC REIT: USD0.94/share, D/A 35.0%, P/B 0.99x.

Other Business Trusts and Infrastructure

• CapitaLand India Trust: SGD1.18/share, 7.0% forward yield, D/A 42.3%, P/B 0.91x. YTD return: 13.7%.
• Keppel Infrastructure Trust: SGD0.445/share, 9.0% forward yield, D/A 39.3%, P/B 3.25x. YTD return: 6.4%.
• Asian Pay Television Trust: SGD0.104/share, D/A 58.6%, P/B 0.27x. YTD return: 42.1%.

Geographical Diversification of S-REIT Portfolios

The asset portfolios of S-REITs are increasingly diversified across regions, reducing concentration risks and offering exposure to global real estate trends.

Distribution Details: Upcoming Pay Dates and Amounts

Analysts’ Ratings and Recommendations

• Buy-rated S-REITs: CapitaLand Ascott Trust, CapitaLand India Trust, CapitaLand Integrated Commercial Trust, Frasers Centrepoint Trust, Frasers Logistics & Commercial Trust, Keppel DC REIT, Mapletree Pan Asia Commercial Trust, Mapletree Industrial Trust, Mapletree Logistics Trust, OUE REIT, Parkway Life REIT, Stoneweg Europe Stapled Trust.
• Hold-rated S-REITs: CapitaLand China Trust, First REIT, Keppel REIT, Starhill Global REIT, Suntec REIT.

The next results releases span mid-October to early November 2025.

Conclusion: S-REITs Set for Growth Despite Headwinds

Singapore REITs are on the cusp of a growth recovery, supported by improving average DPU forecasts, favorable valuations, and ongoing financial discipline. Investors are advised to monitor sector leaders and take note of upcoming distribution dates, sector rotation trends, and key corporate developments. OCBC Investment Research’s preferred picks offer a blend of yield, stability, and upside potential for both tactical and long-term investors.