Singapore REITs Monthly Update (21 Sep 2025)

Technical Analysis of FTSE ST REIT Index (FSTAS351020)

FTSE ST Real Estate Investment Trusts (FTSE ST REIT Index) increased from 674.37 to 698.89 (3.64%) compared to last month's update. The index has recovered steadily since the April low and is now completing the inverted head and shoulders (circled), and is in an uptrend channel. The 200D SMA is mostly reversed, suggesting improved market sentiment. There is now a new resistance line of about 720 and a breakout above this zone could pave the way finally for an uptrend of the 200D SMA. 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: Sideways
• Immediate Support: 20D SMA, 50D SMA
• Immediate Resistance: 720 (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 August 23rd, 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 September 21st, 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 0.85 (Weighted Average: 0.99)
  • Increased from 0.82 from August 2025.
  • Singapore Overall REIT sector is slightly undervalued

• Most overvalued REITs (based on Price/NAV)
  

  ParkwayLife REIT	1.69
  Keppel DC REIT	1.49
  Capitaland Ascendas REIT	1.27
  Mapletree Industrial Tr	1.26
  AIMS APAC REIT	1.11
  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	0.33
  Manulife US REIT	0.38
  Prime US REIT	0.40
  Acrophyte Hospitality Trust	0.41
  CDL Hospitality Trust	0.57

Distribution Yields Overview

• TTM Distribution Yield decreased to 5.49%. (Weighted Average decreased to 5.32%)    
  • Decreased from 5.63% in August 2025. (Weighted Average was 5.58%)
  • 13 of 37 Singapore REITs have ttm distribution yields of above 7%.

• Highest Distribution Yield REITs (ttm)
  

  Stoneweg European Stapled Trust	8.72
  Sasseur REIT	8.67
  IREIT Global	8.60
  Elite UK REIT	8.60
  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 widened to 3.89%. (Weighted Average is 3.86%)     
  • Widened from 3.66% in August 2025. (Weighted Average was 3.93%)
  • 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 39.89%. (Weighted Average: 37.26%)
  • Decreased from 40.39% in August 2025.  (Weighted Average: 37.81%)  
  • Gearing Ratios are updated quarterly. Therefore, no values changed and all values are based on the most recent Q2 2025 updates. The drop is due to Centurion Accommodation REIT's low gearing ratio of 20.9%.
  • 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 5.38% to S$99.76 Billion.
  • Increased from S$94.67 Billion in August 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	16683.22
  Capitaland Ascendas REIT	12804.68
  Mapletree Pan Asia Commercial Trust	7437.47
  Mapletree Logistics Tr	6293.00
  Mapletree Industrial Tr	6072.63
  Keppel DC REIT	5213.24

• Smallest Market Capitalisation REITs (S$m):
  

  Lippo Malls Indonesia Retail Trust	76.97
  Manulife US REIT	188.27
  Acrophyte Hospitality Trust	215.74
  EC World REIT	226.74
  BHG Retail REIT	228.62
  Keppel Pacific Oak US REIT	308.06

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 August 2025

Refer to the Detailed 2024 S-REITs Performance Here.

SG 10 Year Government Bond Yield

• SG 10 Year: 1.80% (decreased from 1.91%)

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 4.13%, while the Singapore 10Y yield has declined to 1.80%, the lowest level in over two 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 3.89%, but the market-cap weighted spread tightened slightly to 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 (almost fair value at only 1% discount now 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. 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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