FTSE ST Real Estate Investment Trusts (FTSE ST REIT Index) declined sharply from 721.34 to 664.56 (-7.87%) compared to the previous update, marking a decisive breakdown below the previous support at ~695.
Over this period, the index has transitioned from consolidation into a clear downside impulse within 2 days, with price slicing through prior 695 support that had held multiple times since Sep 2025, likely due to the volatility brought about from the Iran war.
On the downside, the next key support lies around 622, which previously acted as a base during earlier cycles. If selling momentum persists, these levels are likely to be tested.
On the upside, any rebound is expected to face strong resistance at ~695, followed by ~725, where prior consolidation and supply zones exist. A recovery back above 695 (previous support) is needed to stabilize price action.
Overall, the index has entered a short-term bearish trend with strong momentum, and the medium-term outlook has shifted to bearish bias following the breakdown of key support. The long-term structure is now at risk of rolling over if lower support levels fail to hold.
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 January 12th, 2026.
The following is the compilation of 40 Singapore REITs with colour-coding of the Distribution Yield, Gearing Ratio and Price to NAV Ratio.
Data from REITsavvy Screener. https://screener.reitsavvy.com/
What does each Column mean?
As of May 2024, all REITs' Yield Spread will be referenced to SG Gov Bond Yields, regardless of trading currency.
| ParkwayLife REIT | 1.56 |
| Keppel DC REIT | 1.35 |
| AIMS APAC REIT | 1.17 |
| Mapletree Industrial Tr | 1.16 |
| Capitaland Ascendas REIT | 1.09 |
| Capitaland Integrated Commercial Trust | 1.09 |
| Lippo Malls Indonesia Retail Trust | 0.20 |
| Keppel Pacific Oak US REIT | 0.26 |
| Prime US REIT | 0.30 |
| Manulife US REIT | 0.32 |
| Acrophyte Hospitality Trust | 0.33 |
| IREIT Global | 0.47 |
| Sasseur REIT | 9.74 |
| ESR REIT | 9.53 |
| Elite UK REIT | 9.18 |
| Stoneweg European Stapled Trust | 8.93 |
| Daiwa House Logistics Trust | 8.84 |
| First REIT | 8.68 |
| EC World REIT | 73.5 |
| Manulife US REIT | 58.0 |
| Keppel REIT | 47.9 |
| Prime US REIT | 45.0 |
| IREIT Global | 44.6 |
| Keppel Pacific Oak US REIT | 44.1 |
| Capitaland Integrated Commercial Trust | 17734.33 |
| Capitaland Ascendas REIT | 11515.00 |
| Mapletree Pan Asia Commercial Trust | 6918.32 |
| Mapletree Logistics Tr | 6010.92 |
| Mapletree Industrial Tr | 5591.88 |
| Keppel DC REIT | 4948.16 |
| Lippo Malls Indonesia Retail Trust | 76.97 |
| Manulife US REIT | 140.40 |
| Acrophyte Hospitality Trust | 170.13 |
| EC World REIT | 226.74 |
| BHG Retail REIT | 239.02 |
| Keppel Pacific Oak US REIT | 239.72 |
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.
SG 10 Year Government Bond Yield
The Singapore REIT sector has reversed its recent recovery, with the FTSE ST All-Share REIT Index declining from 721.34 to 664.56 (-7.87%) over the past two months, with most of the losses occurring in the past week, from 700 to 664.56. The index has broken decisively below the 695–700 support range, which had previously underpinned the recovery, signaling a clear deterioration in market structure.
On the macro front, interest rate dynamics have turned less supportive at the margin. The US 10-year Treasury yield has risen to ~4.38%, breaking above recent consolidation levels (highest since mid-2025 levels) and indicating renewed upward pressure on global rates. This move represents a key headwind for REIT valuations, particularly after a period of relative stability.
In contrast, the Singapore 10-year government bond yield remains subdued at ~2.1–2.2%, suggesting that domestic financing conditions are still relatively stable. However, the divergence between US and Singapore yields may limit the extent of local rate relief, especially given the global nature of capital flows.
Valuations remain attractive, with many REITs still trading below NAV, particularly within industrial, retail, and selected hospitality segments. Sector yields in the mid-5% to 6% range continue to offer a reasonable premium over risk-free rates. Yield spreads have tightened modestly as prices recovered, but remain supportive on a historical basis.
US 10 Year Risk Free Rate
According to the CME FedWatch tool, markets continue to price a delayed and gradual easing cycle, with the highest probabilities centered around the 350–400 bps range through 2026, and only a slow progression towards lower rates into 2027. This reinforces the view that near-term rate relief is limited, and higher-for-longer conditions may persist.
Valuations have become more compelling following the recent correction, with many REITs trading at wider discounts to NAV. Sector yields have likely expanded back towards the mid-6% range, improving the relative attractiveness of income spreads versus risk-free rates.
However, the increase in bond yields partially offsets this benefit, and investor sensitivity to interest rate movements remains elevated. As such, valuation support alone may not be sufficient to drive a near-term rebound without stabilization in rates.
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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