The conversation begins with Elite UK REIT's inclusion under the CPF Investment Scheme and what that means for CPF investors.
Kenny Loh, REIT Specialist and Wealth Advisory Director, examines whether yields, lower interest rate expectations and valuations are creating a compelling opportunity.
We also examine why industrial REITs continue to demonstrate resilience and the return of acquisition activity across the REIT sector.
Elite UK REIT was recently added to the CPF Investment Scheme (CPFIS), allowing investors to use CPF Ordinary Account (OA) savings to purchase units.
The inclusion is significant because Elite UK REIT is one of the few Singapore-listed REITs providing exposure to UK government-backed properties while being eligible for CPF investments.
Key highlights:
According to Kenny Loh, several factors likely contributed to its inclusion:
A 9% yield always raises an important question:
A: Investors are demanding compensation for several risks:
A: No.
CPFIS eligibility does not remove:
One of the key reminders from the discussion was that CPF-approved investments can still perform poorly if operating conditions deteriorate.
Retail investors have reportedly invested approximately S$925 million into S-REITs in 2026.
The primary driver is yield.
Comparison:
| Asset | Approximate Yield |
|---|---|
| 6-Month T-Bill | ~1.5% |
| Singapore Savings Bond | ~1.5–2.1% |
| S-REITs | 5–9% |
As cash yields decline, REITs have become attractive again for income-focused investors.
Several industrial and logistics-focused REITs were highlighted:
Common characteristics:
One major theme discussed was the return of acquisitions as a growth driver.
Notable transactions mentioned include:
The objective is clear:
Grow asset bases to support future DPU growth despite elevated interest rates.
One of the most important insights from the interview was Kenny's description of a "K-shaped recovery."
Large-cap and sponsor-backed REITs:
Smaller REITs with:
The takeaway:
Not all REITs will recover together.
Stock selection is becoming increasingly important.
Suburban retail was previously considered one of the more defensive REIT subsectors.
Kenny remains positive on the stability of names like Frasers Centrepoint Trust but noted:
The key risk remains US interest rates.
If rates stay elevated:
Current valuations appear attractive, but a significant recovery may require a clearer interest-rate easing cycle.
A: Potentially yes, but selectively.
Investors should focus on:
A: Kenny suggested avoiding over-concentration, with REIT exposure generally not exceeding around 30% of a diversified portfolio.
Elite UK REIT's CPFIS inclusion is a positive development, but CPF approval should not be mistaken for a guarantee of safety.
The broader S-REIT market appears attractively valued, particularly within industrial, logistics and data-centre sectors. However, investors should remain selective as the market enters a K-shaped recovery where stronger REITs continue to pull ahead while weaker REITs struggle with refinancing and growth challenges.