December is traditionally a season of celebrations and year-end reflections. For income investors, it’s also an opportune time to review portfolios, assess performance, and strategize for the coming year.
Beyond the well-known blue-chip constituents of the Straits Times Index, there are lesser-known opportunities worth exploring. Here are three small-cap stocks—companies with market capitalizations below S$1 billion—that offer steady income potential and deserve closer attention as the new year approaches.
Elite UK REIT Advances Multi-Pronged Portfolio Transformation
Elite UK REIT (SGX: MXNU) stands out for its defensive income profile, with 99.1% of rental income backed by UK government tenants, making it one of the most secure income plays on the SGX. As of 30 September 2025, the REIT owns 148 properties valued at £419.7 million.
In the first half of 2025, the REIT completed three strategic acquisitions worth £9.2 million, adding the Department for Environment, Food & Rural Affairs as a new tenant. These acquisitions boosted gross rental income from non-DWP government occupiers by 1.5 times, delivering a yield of 9.2%—higher than the existing portfolio’s 9.0%. The weighted average lease expiry (WALE) also improved to 7.2 years, up from 2.9 years.
Future repositioning efforts include converting Lindsay House in Dundee into 168-bed student accommodation, potentially increasing its valuation fivefold by 2027. Plans are also underway for Cambria House in Cardiff (348 beds) and a hyperscale data center in Blackpool. Additionally, the REIT aims to renegotiate partial DWP leases by Q1 2026, addressing £352.1 million of its portfolio.
Civmec Order Book Rebounds
Civmec Limited (SGX: P9D), an integrated construction and engineering services provider, operates across energy, resources, infrastructure, and marine & defense sectors. Headquartered in Western Australia, the company specializes in heavy engineering, shipbuilding, and modular construction.
As of 30 September 2025, Civmec’s order book surged to A$1.15 billion, up from A$633 million at the end of 2024. Key projects driving this growth include the CSBP Sodium Cyanide expansion, a port debottlenecking initiative, and Fortescue’s process water tank installation at Kings Valley Solomon mine.
The defense sector presents significant growth potential. Civmec acquired Luerssen Australia in July 2025, rebranding it Civmec Defence Industries. The company delivered the NUSHIP Eyre, an offshore patrol vessel, in September 2025, with four more under construction. The Australian government’s A$12 billion investment in a Defense Precinct at Henderson further strengthens Civmec’s position in future naval programs.
Boustead Singapore Pursues Value Unlocking Through UI Boustead REIT Listing
Boustead Singapore (SGX: F9D) aims to unlock value from its real estate portfolio by listing UI Boustead REIT on the SGX. Following strategic reviews in mid-2025, its subsidiary Boustead Projects Limited agreed to divest four Singapore logistics and industrial properties to the proposed REIT.
The transaction hinges on UI Boustead REIT acquiring full ownership, requiring all joint venture partners to divest their stakes. Management expects the move to monetize the portfolio’s market value and enable capital recycling. Proceeds could fund new design-and-build projects, where Boustead’s engineering backlog stands at S$396 million as of September 2025. The listing timeline depends on regulatory approvals and partner negotiations.
