Technical Analysis of FTSE ST REIT Index (FSTAS351020)

FTSE ST Real Estate Investment Trusts (FTSE ST REIT Index) increased from 638.78 to 660.49 (3.40%) compared to last month's update. It has continued to trade between 622 and 665 (660 currently) following the April flash crash caused by “Liberation Day” announced by US President Donald Trump. The resistance of 665 has been tested 2 times, and a breakout may be possible if the resistance is broken and the uptrend continues. Immediate support is at 622, tested 5 times between April 2024 and most recently in June.

• Short-term direction: Up
• Medium-term direction: Sideways
• Long-term direction: Sideways
• Immediate Support: Blue Support Line (622), followed by 586 (Mar 2020 crash)
• Immediate Resistance: 665

FTSE REIT Index Chart (2 years)

Previous chart on FTSE ST REIT index can be found in the last post: Singapore REIT Fundamental Comparison Table on June 19th, 2025.

Fundamental Analysis of 38 Singapore REITs

The following is the compilation of 38 Singapore REITs with colour-coding of the Distribution Yield, Gearing Ratio and Price to NAV Ratio.

• The Financial Ratios are based on past data and these are lagging indicators.
• All REITs have the latest Q1 2025 values.
• I have introduced weighted average (weighted by market cap) to the financial ratios, in addition to the existing simple average ratios. This is another perspective where smaller market cap REITs do not disproportionately affect the average ratios. As of May 2025, I have removed EC World REIT from these calculations. 
• Listed on 14th July, NTT DC REIT is now included in the calculations.

Data from REITsavvy Screener. https://screener.reitsavvy.com/

What does each Column mean?

• FY DPU: If Green, FY DPU for the recent 4 Quarters is higher than that of the preceding 4 Quarters. If Lower, it is Red.

• Yield (ttm): Yield, calculated by DPU (trailing twelve months) and Current Price as of July 15th, 2025.

• Gearing (%): Leverage Ratio.

• Price/NAV: Price to Book Value. Formula: Current Price over Net Asset Value per Unit.

• Yield Spread (%): REIT yield (ttm) reference to Gov Bond Yields. REITs are referenced to SG Gov Bond Yield.

As of May 2024, all REITs' Yield Spread will be referenced to SG Gov Bond Yields, regardless of trading currency.

Price/NAV Ratios Overview

• Price/NAV increased to 0.78 (Weighted Average: 0.96)
  • Increased at 0.76 from June 2025.
  • Singapore Overall REIT sector is slightly undervalued

• Most overvalued REITs (based on Price/NAV)
  

  ParkwayLife REIT	1.68
  Keppel DC REIT	1.46
  Capitaland Ascendas REIT	1.25
  Mapletree Industrial Tr	1.18
  AIMS APAC REIT	1.10
  Frasers Hospitality Trust	1.09

  EC World REIT is currently suspended, however at current Price and NAV/Unit values it has a value of 7.00 (N.M)

• Most undervalued REITs (based on Price/NAV)
  

  Lippo Malls Indonesia Retail Trust	0.18
  Manulife US REIT	0.30
  Prime US REIT	0.31
  Keppel Pacific Oak US REIT	0.32
  Acrophyte Hospitality Trust	0.39
  BHG Retail REIT	0.53

Distribution Yields Overview

• TTM Distribution Yield decreased slightly to 5.86%. (Weighted Average decreased to 5.74%)    
  • Decreased from 5.99% in June 2025. (Weighted Average was 6.08%)
  • 14 of 37 Singapore REITs have ttm distribution yields of above 7%.

• Highest Distribution Yield REITs (ttm)
  

  IREIT Global	9.81
  Stoneweg European REIT	9.24
  Sasseur REIT	9.22
  Elite UK REIT	8.70
  ESR REIT	8.68
  United Hampshire REIT	8.64

  Reminder that these yield numbers are based on current prices. 

  • Some REITs opted for semi-annual reporting and thus no quarterly DPU was announced.
  • A High Yield should not be the sole ratio to look for when choosing a REIT to invest in.

• Yield Spread tightened slightly to 3.90%. (Weighted Average tightened slightly to 3.70%)     
  • Tightened from 3.91% in June 2025. (Weighted Average was 3.74%)
  • From May 2024 onwards, all my yield spread measurements are now in relation to SG Gov Bond Yields, no longer a mix with US Gov Bond Yields.

Gearing Ratios Overview

• Gearing Ratio decreased to 39.81%. (Weighted Average: 37.88%)
  • Decreased from 39.94% in June 2025. (Weighted Average: 38.35%)  
  • Gearing Ratios are updated quarterly. All values are based on the most recent Q4 2024 updates.
  • S-REITs Gearing Ratio has been on a steady uptrend. It was 35.55% in Q4 2019.

• Highest Gearing Ratio REITs
  

  Manulife US REIT	59.4
  EC World REIT	56.8
  Prime US REIT	46.8
  Lippo Malls Indonesia Retail Trust	44.2
  Keppel Pacific Oak US REIT	43.7
  Suntec REIT	43.4

  MUST and EC World REIT's gearing ratio has exceeded MAS's gearing limit of 50%. However, the aggregate leverage limit is not considered to be breached if exceeding the limit is due to circumstances beyond the control of the REIT Manager.

Market Capitalisation Overview

• Total Singapore REIT Market Capitalisation increased by 6.15% to S$91.77 Billion.
  • Increased from S$86.45 Billion in June 2025.
  • This increase can be partially attributed (in addition to the bullish performance) to the listing of NTT DC REIT.

• Biggest Market Capitalisation REITs (S$m):
  

  Capitaland Integrated Commercial Trust	16202.60
  Capitaland Ascendas REIT	12100.00
  Mapletree Pan Asia Commercial Trust	6579.88
  Mapletree Logistics Tr	5928.39
  Mapletree Industrial Tr	5759.02
  Keppel DC REIT	4926.07

• Smallest Market Capitalisation REITs (S$m):
  

  Lippo Malls Indonesia Retail Trust	76.97
  Manulife US REIT	164.53
  BHG Retail REIT	197.45
  Acrophyte Hospitality Trust	208.05
  Prime US REIT	284.82
  Keppel Pacific Oak US REIT	294.32

Disclaimer: The above table is best used for “screening and shortlisting only”. It is NOT for investing (Buy / Sell) decision. If you want to know more about investing in REITs, scroll down for more information on the REITs courses.

Top 10 Best/Worst Performers of June 2025

Refer to the Detailed 2024 S-REITs Performance Here.

SG 10 Year Government Bond Yield

• SG 10 Year: 2.18% (decreased from 2.25%)

Summary

Singapore REITs sector is within a range between 620 and 660. The US 10Y Risk Free Rate has increased slightly to 4.43%, while the SG 10Y Risk Free Rate decreased by 0.07%. However, average yield decreased due to the slight increase in the index, explaining the slight tightening of the Yield Spread w.r.t to the SG Risk Free Rate.

Singapore REITs sector has very strong inversed correlation with US 10Y Risk Free Rate. For S-REIT to 'come back to life again', we need the US 10 year risk free rate to come down otherwise the performance of Singapore REIT index will continue to be muted.

US 10 Year Risk Free Rate

Fundamentally, the S-REIT sector is trading at a 22% discount (4% if using weighted average) to its fair value, with an average trailing twelve-month (TTM) yield of 5.86%. Yield has come down but this is the natural result if the REIT index increases.

According to the current Fed Fund Rate projections from the CME Group, the market expects a 25 basis point cut by Q3 2025. The cut in interest rate will help to boost the DPU of the REITs which have shorter debt maturity profile and higher percentage of floating rate. However, the impact will only be reflected in the financial statement probably in Q3 or Q4 2025. 

Kenny Loh is a distinguished Wealth Advisory Director with a specialization in holistic investment planning and estate management. He excels in assisting clients to grow their investment capital and establish passive income streams for retirement. Kenny also facilitates tax-efficient portfolio transfers to beneficiaries, ensuring tax-efficient capital appreciation through risk mitigation approaches and optimized wealth transfer through strategic asset structuring.

In addition to his advisory role, Kenny is an esteemed SGX Academy trainer specializing in S-REIT investing and regularly shares his insights on MoneyFM 89.3. He holds the titles of Certified Estate & Legacy Planning Consultant and CERTIFIED FINANCIAL PLANNER (CFP).

With over a decade of experience in holistic estate planning, Kenny employs a unique “3-in-1 Will, LPA, and Standby Trust” solution to address clients’ social considerations, legal obligations, emotional needs, and family harmony. He holds double master’s degrees in Business Administration and Electrical Engineering, and is an Associate Estate Planning Practitioner (AEPP), a designation jointly awarded by The Society of Will Writers & Estate Planning Practitioners (SWWEPP) of the United Kingdom and Estate Planning Practitioner Limited (EPPL), the accreditation body for Asia.

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