Singapore – Singapore’s Real Estate Investment Trust (REIT) investors have navigated a challenging period over the past three years, grappling with the dual headwinds of elevated interest rates and surging inflation. However, recent encouraging signals suggest a potential turning point. With interest rate hikes appearing to have paused and stabilized, coupled with Singapore’s core inflation rate hitting a four-year low of 0.5% in March, investor sentiment is receiving a welcome boost.

In this evolving landscape, attention is increasingly turning towards REITs that have demonstrated operational resilience and possess the potential for future dividend growth, even amidst the economic headwinds. Notably, high occupancy rates and positive rental reversion rates serve as crucial indicators of a REIT’s ability to generate stable and growing income streams.

This article highlights five Singapore REITs that meet these criteria and exhibit promising prospects for increased distributions to unitholders in the near future.

1. Lendlease Global Commercial REIT (LREIT) (SGX: JYEU)

Lendlease Global Commercial REIT (LREIT) holds a portfolio of five prime assets, including 313@somerset and Jem in Singapore, and Sky Complex in Milan, Italy. According to its Q3 FY2025 business update, LREIT boasts a strong overall portfolio occupancy of 92.1%. Its retail portfolio demonstrated a positive rental reversion of 10.4% year-to-date, while its Singapore office assets saw a notable rental uplift of 13%. Tenant retention also remained robust at approximately 88% based on net lettable area.

LREIT’s manager is actively pursuing asset enhancement initiatives (AEIs) to further enhance asset values. At Jem, new tenants such as Shaw Theatres, Lululemon, and Chagee have been onboarded, and mall-wide restroom upgrading works are underway, targeted for completion in Q1 2026. In Italy, AEIs have been completed at the lobby of Sky Complex Building 3.

2. AIMS APAC REIT (AAREIT) (SGX: O5RU)

AIMS APAC REIT (AAREIT) is an industrial and logistics REIT with a diversified portfolio of 28 properties, comprising 25 in Singapore and three in Australia. Its FY2025 results (ending March 31, 2025) showcased robust growth, with gross revenue increasing by 5.3% year-on-year to S$186.6 million and distribution per unit (DPU) rising by 2.6% year-on-year to S$0.096.

AAREIT maintains a high portfolio occupancy rate of 93.6% and achieved a positive rental reversion of 20%, providing a solid operational foundation for continued stable growth.

AAREIT, in partnership with its joint venture partner, has invested in AEIs at the Optus Centre Campus in Macquarie Park, Australia, including the development of a premium event space to activate the entire campus. In Singapore, two AEIs are in progress at 7 Clementi Loop and 15 Tai Seng Drive. These projects, with a total investment of S$32.0 million, are targeted for completion in 2026 and are expected to yield a net property income (NPI) yield of over 7%.

3. Keppel REIT (SGX: K91U)

Keppel REIT is a commercial REIT with a portfolio of 13 prime office assets located in Singapore (4), Australia (7), South Korea (1), and Japan (1). In its Q1 2025 business update, Keppel REIT reported a high portfolio occupancy of 96% and achieved a positive rental reversion of 10.6%.

The REIT’s gross revenue for Q1 2025 increased by 12.1% year-on-year to S$68.7 million, and distributable income (assuming all management fees were paid in units) rose by 3.2% year-on-year to S$57.0 million.

Keppel REIT has completed AEIs at Level D of Pinnacle Office Park in Sydney, with approximately 75% of the space under Heads of Agreement. At 255 George Street, it has also completed the creation of four bespoke fitted-out suites, securing a tenant for one suite and a Heads of Agreement for another.

4. CapitaLand Ascendas REIT (CLAR) (SGX: A17U)

CapitaLand Ascendas REIT (CLAR) is Singapore’s oldest and largest listed business space and industrial REIT, with a portfolio of 226 properties valued at approximately S$17.0 billion. In its Q1 2025 business update, CLAR reported a robust portfolio occupancy of 91.5% and achieved a positive rental reversion of 11% for the quarter.

CLAR commenced a S$302.0 million redevelopment project at Science Park Drive in Q1 2025 and completed two AEIs in Singapore and the United States totaling S$4.6 million. Currently, six projects are underway in Singapore and the United States, with an estimated total cost of approximately S$500 million. These AEIs are expected to be completed progressively from Q3 2025 to Q1 2028.

5. Stoneweg European REIT (SERT) (SGX: CWBU)

Stoneweg European REIT (SERT) holds a diversified portfolio of over 100 predominantly freehold properties across various European countries, including Italy, France, Poland, Denmark, and the United Kingdom. In Q1 2025, its gross revenue increased by 0.5% year-on-year to EUR 53.6 million. However, its estimated DPU decreased by 3.7% year-on-year to EUR 0.03374, primarily due to higher interest expenses.

Despite the DPU decrease, SERT maintained a strong overall portfolio occupancy of 92% and achieved a positive rental reversion of 1.7% across its portfolio. SERT announced upcoming AEIs for two industrial building assets in Slovakia and the UK, totaling approximately EUR 15.0 million. In the Netherlands, another significant AEI with an estimated cost of EUR 130.0 million is in the preliminary planning stages.

SERT’s asset manager is also evaluating SWI Group’s right-of-first-refusal pipeline, which includes complementary asset classes such as logistics assets and data centers.

The five Singapore REITs highlighted above demonstrate fundamental strengths, including high occupancy rates and positive rental reversions, enabling them to generate stable income even in a challenging economic climate. With the anticipated stabilization of interest rates and the easing of inflationary pressures, these REITs are well-positioned to potentially increase their dividend payouts in the future. Investors are advised to closely monitor the ongoing operational performance and asset management strategies of these REITs as they explore potential investment opportunities in Singapore’s resilient REIT sector.

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