S-REIT Rents Are Rising, But Distributions Tell a Different Story
As of the morning session on 30 October, 24 S-REITs (including property trusts) had released results or business updates for periods ended 30 Sep, representing just over three-fifths of the 39 actively traded trusts. The releases span quarterly, half-year, nine-month and full-year periods.
Positive rental reversions were a common feature: 19 of the 20 trusts reporting numerical measures recorded at least one positive portfolio, market or segment figure. The measures cover different reporting periods and lease scopes and do not measure total portfolio rental-income growth.
Singapore’s REIT sector spans domestic malls and offices alongside overseas logistics, data centres and rental housing, exposing portfolios to different leasing cycles. Higher renewal rents can support income as leases commence, but occupancy, currencies and financing costs influence how much reaches unitholders.
Retail and Office Rental Reversions
Singapore retail and office portfolios generally secured higher rents on the leases reported. $Suntec Reit(T82U.SI)$ recorded 3QFY26 reversions of 7.3% for Singapore office and 11.2% for Singapore retail, while $CapLand IntCom T(C38U.SI)$ reported 4.6% and 7.1%, respectively, for its Singapore retail and office portfolios over 9MFY26.
The positive leasing performance also extended across the other commercial trusts. $Frasers Cpt Tr(J69U.SI)$ reported that average rents over renewed retail leases were 6.6% higher than average rents over the preceding leases in FY26, excluding NEX, Hougang Mall and White Sands. $Keppel Reit(K71U.SI)$ achieved 12.0% for leases committed in 9MFY26, while $OUEREIT(TS0U.SI)$ reported 3QFY26 reversions of 4.6% for Singapore office renewals and 5.9% for Mandarin Gallery.
For portfolios spanning several markets, the geographic breakdown provides further context. $Mapletree PanAsia Com Tr(N2IU.SI)$ recorded positive 3.5% reversion for leases expiring in FY26/27 that were committed during 1HFY26/27. VivoCity achieved positive 15.0%, alongside negative 15.6% at Festival Walk and negative 29.9% for its China portfolio. Separately, $Landmark REIT(D5IU.SI)$ reported average reversion of positive 3.0% for 9MFY26.
Industrial, Logistics and Specialised Portfolios
Industrial and logistics portfolios also generally secured higher rents, with the pace of increases differing across trusts. $CapLand Ascendas REIT(A17U.SI)$ ’s portfolio reversion increased to 9.9% in 3QFY26 from 5.2% in 2QFY26, taking its nine-month measure to 9.0%. $ESR REIT(9A4U.SI)$ reported portfolio reversion of 9.3% for 9MFY26, while $Mapletree Ind Tr(ME8U.SI)$ recorded a weighted average increase of 6.9% for its Singapore portfolio in 2QFY26/27.
Some trusts continued to achieve higher renewal rents, though at a slower pace than in earlier periods. $Alpha Integrated REIT(M1GU.SI)$ reported 6.0% portfolio reversion in 3QFY26, compared with 10.9% in 1HFY26 and 11.3% in 3QFY25. $UIBREIT(UIBU.SI)$ recorded 5.1% for Singapore leases renewed in 2QFY27 (1 Jul to 30 Sep 2026). It compared the first year’s rent under each renewed lease with the final year’s rent under the preceding lease, giving larger renewed areas more weight. Its Japan renewals were at unchanged rents.
$AIMS APAC Reit(O5RU.SI)$ ’s results also showed differences between property types. Its Singapore renewal reversion was 5.7% for 1HFY27, compared with 7.7% a year earlier. Renewal rents increased 6.5% for logistics and warehouses and 3.4% for industrial properties, while business parks recorded a 1.0% decline. Its overall Singapore reversion moderated to 1.4% in 2QFY27 from 6.5% in 1QFY27.
Geographic differences were also evident in logistics and mixed-property portfolios. $Mapletree Log Tr(M44U.SI)$ ’s portfolio reversion was 2.1% in 2QFY26/27, or 4.2% excluding China. Its Singapore leases recorded a 5.3% increase, while China recorded a 1.7% decline. $CapLand China T(AU8U.SI)$ separately reported 9MFY26 rental declines on the leases measured of 3.0% for retail, 12.6% for business parks and 1.3% for logistics parks.
The India and US portfolios reported positive renewal-rent changes over different measurement periods. $CapLand India T(CY6U.SI)$ reported 23% rental reversion over the trailing 12 months to 30 Sep. $KOREReitUSD(CMOU.SI)$ reported 0.7% in 3QFY26 and 1.3% for 9MFY26.
Data centres and Japan rental housing also recorded higher rents, though their figures cover different types of leases and contracts. $DigiCore Reit USD(DCRU.SI)$ reported 23% cash rental reversion on new and renewal leases signed in 9MFY26. $Keppel DC Reit(AJBU.SI)$ reported approximately 14% for the nine months, covering contracts renewed and already in effect during the period; secured renewals that had yet to start were excluded. $CapLand Ascott T(HMN.SI)$ reported approximately 5% reversion for Japan rental housing in 3QFY26, specifically for that segment rather than its entire lodging portfolio.
Not every update expressed rental changes as a reversion percentage. $CDL HTrust(J85.SI)$ attributed Claymore Connect’s 1.7% increase in 3QFY26 net property income (NPI) to higher rental reversions but did not quantify the rent change. $First Reit(AW9U.SI)$ and $Far East HTrust(Q5T.SI)$ did not disclose rental reversion in their September-period business updates. $StarhillGbl Reit(P40U.SI)$ ’s 1QFY26/27 business-update presentation did not report a numerical rental-reversion rate. Changes in rental income, scheduled rent increases, hotel room rates and market rental indices measure different things and should not be read as rental reversions.
From Rental Reversions to Distributions
Higher rents on renewed leases are one part of the income picture; contributions from the rest of the portfolio also matter.
$ESR REIT(9A4U.SI)$ ’s positive 9.3% reversion accompanied 1.8% revenue growth from the same properties in 9MFY26, while NPI from those properties declined 1.0%. Mapletree Industrial Trust’s positive Singapore reversion coincided with a 6.6% year-on-year decline in 2QFY26/27 distribution per unit (DPU) to 2.97 cents. Its manager attributed lower revenue and NPI mainly to lower North American contributions and the absence of income from divested Singapore properties. It separately highlighted financing pressure from maturing interest-rate swaps being repriced at higher rates.
Where stronger operations were accompanied by lower financing costs, both supported payouts. Suntec REIT’s 3QFY26 DPU increased 13.4% year on year to 2.017 cents. The prior-year quarter included a S$2.0 million reversal of an Australian withholding-tax provision; excluding that benefit from the comparison, the manager reported operating-basis DPU growth of 18.0%. Frasers Centrepoint Trust’s FY26 DPU increased 2.0% to 12.35 cents.
Acquisitions can add income, while financing costs and additional units affect the amount distributed per unit. Keppel DC REIT’s 9MFY26 distributable income increased 16.7% to S$228.0 million, including reserves for capital expenditure. DPU, calculated after setting aside those reserves, increased 11.7% to 8.571 cents. The manager attributed growth to stronger operations, acquisitions and increased effective interests in Keppel DC Singapore 3 and 4, partly offset by acquisition-related finance costs and more units in issue. Mapletree Logistics Trust’s 2QFY26/27 NPI increased 1.0%, while DPU rose 0.1% to 1.816 cents. Distributions to holders of its perpetual securities increased 33.6%, and there were more units in issue.
Currency movements can also change the income reported in Singapore dollars. Landmark REIT’s 3QFY26 NPI increased 7.6% in rupiah but declined 1.8% in Singapore dollars. First REIT’s 9MFY26 DPU declined 12.7% to 1.44 cents; its manager cited rupiah and yen depreciation, lost income following Indonesian divestments and more units in issue.
For newly listed UI Boustead REIT, the comparison was against its IPO forecast, not the previous year. Following its July business update covering 12 Mar to 30 Jun, its maiden financial results covered 3 Jul 2025 to 30 Sep 2026, with property income earned from its listing on 12 Mar 2026. DPU was 3.71 cents, 0.8% above its IPO forecast adjusted for the corresponding reporting period. NPI was 1.8% below that forecast, while joint-venture results were 31.6% above forecast.
Forthcoming September-Period Releases
The remaining 15 trusts are scheduled to report from late October through mid-November, starting with Lendlease Global Commercial REIT after market close on 30 Oct. This is followed by Elite UK REIT on or around 2 Nov before market open and Parkway Life REIT on 3 Nov.
Acrophyte Hospitality Trust is scheduled for 4 Nov before trading hours, with Manulife US REIT also due that day and Centurion Accommodation REIT after trading hours. Frasers Logistics & Commercial Trust is scheduled for 6 Nov; NTT DC REIT and PRIME US REIT for 11 Nov; and BHG Retail REIT for 11–12 Nov. IREIT Global, Sasseur REIT and Stoneweg Europe Stapled Trust are scheduled for 12 Nov, followed by Daiwa House Logistics Trust and United Hampshire US REIT on 13 Nov.
S-REITs: October Unit Price Performance, Institutional Flows and Valuations
October’s price performance was mixed among trusts reporting positive rental reversions. As of noon on 30 Oct, CapitaLand Integrated Commercial Trust had gained 2.7% month to date and Suntec REIT 1.5%, while Keppel DC REIT was unchanged and CapitaLand Ascendas REIT had declined 2.2%.
|
S-REIT |
Code |
CYTD ADT S$M |
CYTD NIF S$M |
Mkt Cap S$M |
MTD Px % |
YTD Px % |
TR YTD % |
ROE % |
P/B (x) 30 June 2025 |
P/B (x) 30 Oct 2025 |
Sub Sector |
|
CapLand IntCom T |
C38U |
$69.9 |
$25.7 |
$18,158 |
2.7 |
-4.2 |
-0.4 |
7.6 |
1.02 |
1.06 |
Diversified |
|
CapLand Ascendas REIT |
A17U |
$55.4 |
-$467.3 |
$10,876 |
-2.2 |
-21.8 |
-18.2 |
6.8 |
1.14 |
0.93 |
Industrial |
|
Keppel DC Reit |
AJBU |
$27.4 |
-$50.4 |
$5,758 |
0.0 |
-6.2 |
-1.2 |
11.4 |
1.53 |
1.22 |
Data Centre REITs |
|
Mapletree Log Tr |
M44U |
$18.5 |
-$111.5 |
$5,492 |
0.9 |
-16.7 |
-15.3 |
3.0 |
0.83 |
0.73 |
Industrial |
|
Mapletree PanAsia Com Tr |
N2IU |
$16.5 |
-$94.4 |
$5,968 |
-5.7 |
-21.8 |
-19.7 |
2.7 |
0.69 |
0.65 |
Diversified |
|
Keppel Reit |
K71U |
$15.1 |
-$157.3 |
$4,029 |
-4.1 |
-16.4 |
-13.7 |
8.0 |
0.66 |
0.61 |
Office |
|
Suntec Reit |
T82U |
$14.6 |
-$10.9 |
$3,939 |
1.5 |
-6.2 |
-2.4 |
4.9 |
0.52 |
0.63 |
Diversified |
|
Mapletree Ind Tr |
ME8U |
$14.0 |
-$147.2 |
$4,934 |
-7.0 |
-16.8 |
-12.8 |
3.8 |
1.12 |
1.00 |
Industrial |
|
Frasers Cpt Tr |
J69U |
$12.9 |
-$176.3 |
$4,230 |
0.0 |
-10.3 |
-6.0 |
7.4 |
1.00 |
0.85 |
Retail |
|
Frasers L&C Tr |
BUOU |
$11.2 |
-$47.5 |
$3,385 |
1.7 |
-10.1 |
-7.7 |
5.1 |
0.79 |
0.79 |
Diversified |
|
Lendlease Reit |
JYEU |
$9.1 |
-$20.2 |
$1,820 |
0.9 |
-11.0 |
-8.1 |
4.5 |
0.57 |
0.70 |
Diversified |
|
UIBREIT |
UIBU |
$6.7 |
-$82.9 |
$1,073 |
-2.5 |
0.0 |
-2.5 |
N/A |
N/A |
0.92 |
Industrial |
|
CapLand Ascott T |
HMN |
$6.1 |
-$96.3 |
$3,158 |
0.6 |
-13.1 |
-8.3 |
6.0 |
0.70 |
0.65 |
Hospitality / Lodging REITs |
|
Cent Accom REIT |
8C8U |
$5.1 |
-$1.0 |
$1,795 |
1.0 |
-5.4 |
-1.9 |
N/A |
N/A |
1.19 |
Co-Living |
|
CapLand India T |
CY6U |
$4.8 |
-$65.0 |
$1,294 |
-7.1 |
-29.0 |
-22.7 |
15.2 |
0.75 |
0.67 |
Diversified |
|
ParkwayLife Reit |
C2PU |
$4.0 |
-$79.4 |
$2,575 |
-1.0 |
-2.7 |
0.8 |
10.1 |
1.70 |
1.54 |
Health Care |
|
NTT DC REIT USD |
NTDU |
$3.7 |
-$17.3 |
$1,159 |
-4.3 |
-13.2 |
-9.9 |
N/A |
N/A |
0.76 |
Data Centre REITs |
|
AIMS APAC Reit |
O5RU |
$2.6 |
$0.4 |
$1,104 |
-4.2 |
-8.7 |
-4.5 |
8.1 |
0.71 |
0.77 |
Industrial |
|
ESR REIT |
9A4U |
$2.5 |
-$23.3 |
$1,504 |
-3.4 |
-25.8 |
-25.2 |
0.7 |
0.76 |
0.61 |
Industrial |
|
DigiCore Reit USD |
DCRU |
$2.0 |
-$22.0 |
$719 |
-2.2 |
-12.7 |
-7.3 |
4.3 |
0.67 |
0.56 |
Data Centre REITs |
|
CapLand China T |
AU8U |
$1.4 |
-$18.5 |
$1,035 |
-2.4 |
-21.9 |
-18.5 |
-0.7 |
0.60 |
0.52 |
Diversified |
|
Sasseur Reit |
CRPU |
$1.1 |
-$27.5 |
$754 |
-4.8 |
-11.8 |
-3.4 |
5.3 |
0.77 |
0.72 |
Retail |
|
CDL HTrust |
J85 |
$1.1 |
-$9.3 |
$899 |
-2.8 |
-15.6 |
-11.0 |
-1.2 |
0.54 |
0.45 |
Hospitality / Lodging REITs |
|
StarhillGbl Reit |
P40U |
$0.9 |
-$8.0 |
$1,150 |
-1.0 |
-16.0 |
-11.1 |
2.6 |
0.67 |
0.66 |
Retail |
|
OUEREIT |
TS0U |
$0.8 |
-$7.8 |
$1,882 |
-2.9 |
-6.9 |
1.1 |
1.0 |
0.49 |
0.57 |
Diversified |
|
Stoneweg EU Trust EUR |
SET |
$0.8 |
-$12.4 |
$1,125 |
-3.4 |
-12.9 |
-5.3 |
4.9 |
0.71 |
0.66 |
Diversified |
|
Far East HTrust |
Q5T |
$0.6 |
-$13.7 |
$1,039 |
-1.9 |
-17.2 |
-12.8 |
2.3 |
0.61 |
0.58 |
Hospitality / Lodging REITs |
|
First Reit |
AW9U |
$0.4 |
-$5.5 |
$390 |
-10.2 |
-33.1 |
-28.9 |
3.7 |
0.88 |
0.80 |
Health Care |
|
KORE Reit USD |
CMOU |
$0.3 |
-$7.5 |
$192 |
-11.9 |
-40.0 |
-36.7 |
0.6 |
0.32 |
0.21 |
Office |
|
Prime US Reit USD |
OXMU |
$0.3 |
$0.3 |
$191 |
-10.3 |
-47.2 |
-44.8 |
2.2 |
0.29 |
0.20 |
Office |
|
Daiwa Hse Log Tr |
DHLU |
$0.3 |
-$14.8 |
$284 |
0.0 |
-28.3 |
-22.4 |
7.1 |
0.76 |
0.60 |
Industrial |
|
EliteUK REIT GBP |
MXNU |
$0.2 |
$0.2 |
$348 |
-4.7 |
-15.3 |
-7.8 |
22.2 |
0.79 |
0.69 |
Office |
|
UtdHampshReitUSD |
ODBU |
$0.2 |
-$6.1 |
$336 |
-7.5 |
-16.5 |
-9.3 |
5.6 |
0.61 |
0.59 |
Retail |
|
Alpha Integrated REIT |
M1GU |
$0.2 |
$2.9 |
$534 |
-2.1 |
-1.0 |
7.1 |
13.2 |
0.80 |
0.90 |
Industrial |
|
IREIT Global SGD |
UD1U |
$0.1 |
$0.3 |
$219 |
-9.4 |
-43.8 |
-40.9 |
-18.3 |
0.49 |
0.36 |
Diversified |
|
ManulifeReit USD |
BTOU |
$0.1 |
-$3.6 |
$75 |
-3.0 |
-54.9 |
-53.5 |
-10.2 |
0.28 |
0.17 |
Office |
|
Acro HTrust USD |
XZL |
$0.1 |
-$4.4 |
$167 |
7.1 |
-13.5 |
-12.0 |
-6.6 |
0.36 |
0.33 |
Hospitality / Lodging REITs |
|
Landmark REIT |
D5IU |
$0.1 |
$3.3 |
$119 |
0.0 |
-22.2 |
-22.2 |
7.5 |
0.15 |
0.17 |
Retail |
|
BHG Retail Reit |
BMGU |
$0.1 |
$0.2 |
$239 |
0.0 |
5.7 |
6.0 |
-0.6 |
0.61 |
0.63 |
Retail |
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Singapore REITs are showing encouraging leasing momentum. As of 30 October, 19 of 20 trusts reporting rental reversions recorded at least one positive figure. CapitaLand India Trust achieved 23%, while DigiCore REIT reported 23% cash rental reversion.
However, rising rents do not guarantee higher distributions.
Mapletree Industrial Trust illustrates this clearly: despite positive Singapore rental reversions of 6.9%, its quarterly DPU declined 6.6% year on year. Higher financing costs and weaker overseas contributions can offset rental growth.
My view: the next S-REIT opportunity lies in trusts with sustainable rental growth, manageable debt and improving distributable income.
Many REITs still trade below book value, creating potential opportunities. But a discount alone does not make a bargain. Investors should buy sustainable cash flows, not simply attractive yields.
@SGX_Stars [正经]