{"id":205836,"date":"2025-06-17T09:30:00","date_gmt":"2025-06-17T13:30:00","guid":{"rendered":"https:\/\/ibkrcampus.eu\/campus\/uncategorized\/reit-watch-diversified-s-reits-operating-performance\/"},"modified":"2025-06-23T15:12:59","modified_gmt":"2025-06-23T15:12:59","slug":"reit-watch-diversified-s-reits-operating-performance","status":"publish","type":"post","link":"https:\/\/www.interactivebrokers.eu\/campus\/traders-insight\/securities\/etfs\/reit-watch-diversified-s-reits-operating-performance\/","title":{"rendered":"REIT Watch – Diversified S-REITs\u2019 operating performance remain resilient amid market uncertainties"},"content":{"rendered":"\n

5 Largest Diversified S-REITs by Market Cap<\/strong><\/h2>\n\n\n\n
Trust Name<\/strong><\/td>Market Cap (S$M)<\/strong><\/td>PB Ratio<\/strong><\/td>Year-to-date<\/strong>Net Institutional Flows (S$M)<\/strong><\/td>Year-to-date<\/strong>Net Retail Flows (S$M)<\/strong><\/td>Dividend Yield<\/strong><\/td><\/tr>
CapitaLand Integrated Commercial Trust<\/td>15,512<\/td>1.0<\/td>(6.9)<\/td>(66.6)<\/td>5.1%<\/td><\/tr>
Mapletree Pan Asia Commercial Trust<\/td>6,378<\/td>0.7<\/td>(31.0)<\/td>19.6<\/td>6.6%<\/td><\/tr>
Suntec REIT<\/td>3,349<\/td>0.6<\/td>38.2<\/td>(35.6)<\/td>5.5%<\/td><\/tr>
Frasers Logistics & Commercial Trust<\/td>3,110<\/td>0.8<\/td>(41.8)<\/td>50.7<\/td>7.7%<\/td><\/tr>
OUE REIT<\/td>1,542<\/td>0.5<\/td>(2.2)<\/td>2.8<\/td>7.4%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Source: SGX, Bloomberg (Data as of 12 Jun 2025).<\/em><\/p>\n\n\n\n

Past performance is not indicative of future results
Diversified real estate investment trusts (REITs) hold a mixture of assets across multiple sub-sectors such as industrial, retail, office, and hospitality, offering investors the prospect of portfolio stability and flexibility.\u00a0<\/p>\n\n\n\n

The larger diversified S-REITs in the Singapore market include Straits Times Index (STI) counters such as CapitaLand Integrated Commercial Trust (CICT), Mapletree Pan Asia Commercial Trust (MPACT), Frasers Logistics & Commercial Trust (FLCT), as well as Suntec REIT, which is currently on the STI Reserve list. <\/p>\n\n\n\n

Recent business updates from the larger diversified S-REITs for the first quarter ended March highlight their resilient performance with most showing growth in revenue and net property income (NPI), driven by robust operating performance from existing properties and new acquisitions. <\/p>\n\n\n\n

Suntec REIT’s gross revenue for 1Q 2025 increased 3.4 per cent on year to S$113.5 million, due to stronger operating performance across all properties, while JV Income also grew. It reported a higher distribution per unit (DPU) of S$0.01563 for the first quarter, up 3.4 per cent year-on-year (y-o-y). <\/p>\n\n\n\n

Meanwhile, CICT’s gross revenue for 1Q 2025 was S$395.3 million, up 1.1 per cent y-o-y on a like-for-like basis, while net property income (NPI) was similarly up 1.4 per cent over the same period. <\/p>\n\n\n\n

FLCT’s revenue for 1H FY25 was S$232.3 million, up 7.5 per cent on year, while adjusted NPI rose 1.6 per cent to S$161.3 million over the same period. The growth was mainly due to full contributions from completed and acquired properties.<\/p>\n\n\n\n

In terms of operating performance, the larger diversified S-REITs have also demonstrated resilience.<\/p>\n\n\n\n

CICT reported strong rent reversion momentum in the first quarter of 2025 for its retail portfolio of 10.4 per cent. It expects rent reversion to remain positive although at a more moderate pace in the next few quarters. Its office portfolio also saw positive rental reversion of 5.4 per cent. Overall portfolio occupancy was stable, at 96.4 per cent as of end March, ranging between 98.8 per cent for its retail assets, and 94.7 per cent for office assets. <\/p>\n\n\n\n

MPACT\u2019s manager also noted that its Singapore properties continued to cushion against overseas headwinds, with higher revenue and NPI from Singapore assets on a comparable basis in the latest FY24\/25 ended March. It also reported positive rental reversion from the local properties during the year, ranging from 2.2 per cent at Mapletree Business City to 16.8 per cent at VivoCity.<\/p>\n\n\n\n

Similarly, Suntec REIT and OUE Reit also achieved positive rent reversion from their respective Singapore Office and Retail portfolios.<\/p>\n\n\n\n

Occupancy rates across their portfolios also remained stable. Suntec REIT reported its Singapore Office portfolio had 98.7 per cent committed occupancy, slightly lower than 99.4 per cent a year ago, while its Singapore Retail assets improved from 95.8 per cent to 98.2 per cent over the same period.<\/p>\n\n\n\n

OUE REIT\u2019s office committed occupancy improved 1.7 percentage points quarter-on-quarter to 96.3 per cent as of end-March, while committed occupancy at Mandarin Gallery climbed to 99.5 per cent. <\/p>\n\n\n\n

These diversified REITs have also been reporting improvements in terms of capital management. <\/p>\n\n\n\n

Suntec REIT completed S$730 million refinancing due in 2025 and 2026, which would result in interest savings of approximately S$1.8 million per annum and noted that it has pared down debt with proceeds from divestment of strata office units.<\/p>\n\n\n\n

Meanwhile, CICT\u2019s average cost of debt as of end-March was 3.4 per cent down 0.2 percentage points from December.  <\/p>\n\n\n\n

Elsewhere, OUE REIT also noted its proactive capital management in 2024 has significantly reduced the weighted average cost of debt to 4.2 per cent per annum as of end March, down from 4.7 per cent as of December.<\/p>\n\n\n\n

While trade tensions and geopolitical uncertainties present headwinds, the REIT managers note that their portfolios are well-positioned to steer through the uncertainty.<\/p>\n\n\n\n

CICT noted that it will have an ongoing focus on asset enhancement initiatives and portfolio reconstitution efforts. It will continue to monitor the market for opportunities and focus on home-ground Singapore, which offers stability, for inorganic growth.<\/p>\n\n\n\n

The CEO of Suntec REIT\u2019s manager, Chong Kee Hiong, said that the continual improvement in operating performance highlights the strong fundamentals of the properties. \u201cIn light of the global macroeconomic uncertainties, we remain focused on strengthening the operating performance of our properties,\u201d he added.
—<\/p>\n\n\n\n

Originally Posted on June 16, 2025 – REIT Watch – Diversified S-REITs\u2019 operating performance remain resilient amid market uncertainties<\/a>
For more research and information on Singapore\u2019s REIT sector, visit <\/strong><\/em>sgx.com\/research-education\/sectors<\/strong><\/em><\/a> for the SREITs & Property Trusts Chartbook.<\/strong><\/em><\/p>\n\n\n\n

REIT Watch is a regular column on The Business Times, <\/strong><\/em>read<\/strong><\/em><\/a> <\/strong><\/em><\/a>the original version.<\/strong><\/em><\/p>\n\n\n\n

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