Technical Analysis of FTSE ST REIT Index (FSTAS351020)
FTSE ST Real Estate Investment Trusts (FTSE ST REIT Index) increased from 698.89 to 710.29 (1.63%) compared to last month's update. The index has recovered steadily since the April low and is in an uptrend channel. The 200D SMA is reversed, suggesting improved market sentiment. There is now a new resistance line of about 728 and a breakout above 728 could pave the way finally to a level above previously attained in July 2023. The 50D SMA and the 200D SMA provide immediate support. Stronger support remains at 620, tested multiple times in 2024–2025. But for now, the REIT index is bullish.
- Short-term direction: Up
- Medium-term direction: Up
- Long-term direction: Up
- Immediate Support: 20D SMA, 50D SMA
- Immediate Resistance: 728 (line)
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 September 21st, 2025.
Fundamental Analysis of 39 Singapore REITs
The following is the compilation of 39 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 Q2 2025 values, except NTT DC REIT and Centurion Accommodation REIT where their values are based on their IPO Prospectuses.
- 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.
- I have included Centurion Accommodation REIT in this latest update, using values from the IPO Prospectus.
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 October 17th, 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 remained at 0.85 (Weighted Average: 1.01)
- Remained at 0.85 from September 2025 (Weighted Average was 0.99)
- Singapore Overall REIT sector is slightly undervalued (or at fair value if weighted)
- Most overvalued REITs (based on Price/NAV)
ParkwayLife REIT 1.70 Keppel DC REIT 1.49 Capitaland Ascendas REIT 1.30 Mapletree Industrial Tr 1.27 Capitaland Integrated Commercial Trust 1.12 Frasers Hospitality Trust 1.11 EC World REIT is currently suspended and has a N.M P/NAV value.
- Most undervalued REITs (based on Price/NAV)
Lippo Malls Indonesia Retail Trust 0.19 Keppel Pacific Oak US REIT 0.31 Manulife US REIT 0.33 Prime US REIT 0.35 Acrophyte Hospitality Trust 0.37 CDL Hospitality Trust 0.58
Distribution Yields Overview
- TTM Distribution Yield increased to 5.51%. (Weighted Average decreased to 5.19%)
- Increased from 5.49% in September 2025. (Weighted Average was 5.32%)
- 13 of 37 Singapore REITs have ttm distribution yields of above 7%.
- Highest Distribution Yield REITs (ttm)
Stoneweg European Stapled Trust 8.95 Sasseur REIT 8.93 Elite UK REIT 8.60 IREIT Global 8.59 United Hampshire REIT 8.28 First REIT 8.18 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 increased slightly to 3.91%. (Weighted Average is 3.86%)
- Increased from 3.89% in September 2025. (Weighted Average was 3.86%)
- 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 remained at 39.89%. (Weighted Average: 37.27%)
- Remained at 39.89% in September 2025. (Weighted Average: 37.26%)
- Gearing Ratios are updated quarterly. Therefore, no values changed and all values are based on the most recent Q2 2025 updates.
- S-REITs Gearing Ratio has been on a steady uptrend. It was 35.55% in Q4 2019.
- Highest Gearing Ratio REITs
EC World REIT 72.4 Manulife US REIT 57.4 Prime US REIT 46.7 Lippo Malls Indonesia Retail Trust 43.9 Keppel Pacific Oak US REIT 43.7 Stoneweg European Stapled Trust 43.3 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 1.36% to S$101.12 Billion.
- Increased from S$99.76 Billion in September 2025.
- This increase can be partially attributed (in addition to the bullish performance) to the upcoming listing of Centurion Accommodation REIT.
- Biggest Market Capitalisation REITs (S$m):
Capitaland Integrated Commercial Trust 17414.94 Capitaland Ascendas REIT 13081.04 Mapletree Pan Asia Commercial Trust 7648.46 Mapletree Logistics Tr 6394.50 Mapletree Industrial Tr 6129.65 Keppel DC REIT 5191.15
- Smallest Market Capitalisation REITs (S$m):
Lippo Malls Indonesia Retail Trust 76.97 Manulife US REIT 166.40 Acrophyte Hospitality Trust 195.37 EC World REIT 226.74 BHG Retail REIT 228.62 Keppel Pacific Oak US REIT 297.64
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 September 2025
Refer to the Detailed 2024 S-REITs Performance Here.
SG 10 Year Government Bond Yield
- SG 10 Year: 1.75% (decreased from 1.80%)
Summary
The Singapore REIT sector has broken out of its previous lower trading range and is now consolidating between ~695 and 720, which is notably higher than the earlier ranges around the mid-600s. This reflects improving sentiment, supported by easing bond yields.
The US 10Y Treasury yield has moderated to around 4.02%, while the Singapore 10Y yield has declined to 1.75%, the lowest level in over 3.5 years. Falling risk-free rates have been a key driver of the rebound in S-REIT prices, though this has also caused average REIT yields to compress.
The simple average yield spread versus the Singapore 10Y widened to 3.91%, but the market-cap weighted spread remained at 3.86%. This difference reflects that larger-cap REITs experienced greater yield compression compared to smaller its peers.
US 10 Year Risk Free Rate
Historically, the S-REIT sector has shown a strong inverse correlation with the US 10Y yield. With both US and Singapore government yields trending down in recent months, the S-REIT index has staged a meaningful recovery. The key question now is whether this momentum can be sustained as we move into Q4 2025.
Fundamentally, the S-REIT sector is trading at a 15% discount (slightly above fair value if using weighted average) to its fair value, with an average trailing twelve-month (TTM) yield of 5.49%. 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 further 25 basis point cut by Q4 2025, in a week's time. 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.
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