In the wake of global macro tremors — from Donald Trump’s return to the White House to renewed dollar de-dollarization talk — S-REITs are once again under the microscope. Volatile bond yields, a strengthening Singapore Dollar (SGD), and rising geopolitical risks have investors rethinking how currency exposure impacts real estate income.
In this climate, S-REITs with predominantly Singapore-based assets are standing out, offering greater rental income stability amid a complex global backdrop.
Why Currency and Location Matter in 2025
Since the start of the year, the SGD has held firm against regional and global currencies. In fact, USD has depreciate against the SGD by 5.46% since the start of the year 2025! Meanwhile, speculation over global de-dollarization and revived protectionist trade policies have caused currency volatility, particularly in markets like China, Europe, and the U.S.
For REIT investors, the implications are direct: S-REITs with income sourced in foreign currencies are vulnerable to FX fluctuations, even if they hedge short-term exposures. In contrast, S-REITs with assets and tenants based in Singapore enjoy natural insulation — no currency translation drag, predictable cost bases, and income fully aligned with domestic economic trends.
Data Snapshot: Who’s Most Exposed — and Who’s Protected?
Here’s a breakdown of S-REITs based on their Singapore property exposure and dividend yields:
Strong Domestic Anchors
These REITs have 90–100% of income tied to Singapore assets — ideal for SGD stability:
| REIT | SG Exposure | Dividend Yield |
|---|---|---|
| Far East Hospitality Trust | 100.00% | 7.28% |
| Frasers Centrepoint Trust | 100.00% | 5.46% |
| Sabana Industrial REIT | 100.00% | 7.84% |
| CapitaLand Integrated Commercial Trust (CICT) | 93.95% | 5.31% |
| OUE REIT | 92.80% | 7.23% |
| Lendlease Global Commercial REIT | 91.61% | 7.21% |
Overseas Exposure = Higher Risk (and Reward)
By contrast, here are some REITs with 0–10% SG exposure:
| REIT | SG Exposure | Dividend Yield |
|---|---|---|
| CapitaLand Ascott Trust | 8.45% | 7.13% |
| First REIT | 4.80% | 9.00% |
| Acrophyte Hospitality Trust | 0.00% | 7.09% |
| CapitaLand China Trust | 0.00% | 8.25% |
| Elite UK REIT | 0.00% | 9.70% |
| IREIT Global | 0.00% | 11.53% |
| Sasseur REIT | 0.00% | 9.58% |
The Case for Core Singapore Exposure
REITs with strong domestic portfolios benefit from:
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Stable demand drivers: Singapore’s retail, industrial, and commercial sectors remain supported by steady domestic consumption and business activity.
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Regulatory transparency: Singapore’s legal and property frameworks continue to rank among the world’s most investor-friendly.
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Currency alignment: With both income and distributions in SGD, there is no FX leakage for local investors.
Names like Frasers Centrepoint Trust, CICT, and OUE REIT demonstrate this stability, offering attractive yields (7–8% range) with minimal foreign exposure.
Conclusion
As global markets navigate a fresh wave of political shifts, interest rate recalibrations, and FX volatility, income certainty is becoming more valuable than ever. While REITs with overseas assets can offer diversification and potential upside, a strong core of Singapore-focused REITs offers a buffer — reducing currency risk and enhancing distribution reliability.
In a de-globalizing world, local resilience is a premium investors can count on.
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