--- title: The REITsavvy 2025 Annual Review description: As 2025 concludes, the tailwinds for S-REITs appear to be aligning for continued performance, though operational headwinds remain. --- [Skip to content](https://reitsavvy.com/insights/the-reitsavvy-2025-annual-review#main-content) [![op can-4](https://reitsavvy.com/hs-fs/hubfs/op%20can-4.png?width=7114&height=2442&name=op%20can-4.png)](https://reitsavvy.com/) ![menu-toggle](https://21645388.fs1.hubspotusercontent-na1.net/hubfs/21645388/menu-toggle.svg) ![menu-close](https://21645388.fs1.hubspotusercontent-na1.net/hubfs/21645388/menu-close.svg) ![menu-toggle](https://21645388.fs1.hubspotusercontent-na1.net/hubfs/21645388/menu-toggle.svg) ![menu-close](https://21645388.fs1.hubspotusercontent-na1.net/hubfs/21645388/menu-close.svg) - [Home](https://reitsavvy.com) - [What's a REIT](https://reitsavvy.com/what-is-reits) - [S-REITs Overview](https://reitsavvy.com/s-reits-overview) - [REITsavvy Subscription](https://reitsavvy.com/reits-screener) - [REITsavvy Screener Login](https://screener.reitsavvy.com/) - [REITsavvy Insights](https://reitsavvy.com/insights) - [Events](https://reitsavvy.com/events) - [About Us](https://reitsavvy.com/about-us) - [Home](https://reitsavvy.com) - [What's a REIT](https://reitsavvy.com/what-is-reits) - [S-REITs Overview](https://reitsavvy.com/s-reits-overview) - [REITsavvy Subscription](https://reitsavvy.com/reits-screener) - [REITsavvy Screener Login](https://screener.reitsavvy.com/) - [REITsavvy Insights](https://reitsavvy.com/insights) - [Events](https://reitsavvy.com/events) - [About Us](https://reitsavvy.com/about-us) [Annual Review](https://reitsavvy.com/insights/tag/annual-review), [2026](https://reitsavvy.com/insights/tag/2026) # The REITsavvy 2025 Annual Review [By- REITsavvy Team,](https://reitsavvy.com/insights/author/reitsavvy-team) ###### Singapore REITs in 2025: A Resilient Rebound Amid Shifting Tides The year 2025 marked a pivotal turnaround for Singapore Real Estate Investment Trusts (S-REITs). After a turbulent 2024, the sector entered a "Great Rebound," characterized by strong total returns and renewed investor confidence as global and domestic monetary policies shifted toward a more accommodative stance. ###### A Year of Robust Recovery In stark contrast to the previous year's decline, 2025 witnessed some of the strongest performances since 2019. - **Strong Total Returns**: The benchmark iEdge S-REIT Index generated total returns of approximately **9.73% year-to-date** for 2025. - **Outperforming the STI**: Major blue-chip REITs, including Suntec REIT and CapitaLand Integrated Commercial Trust (CICT), recorded gains of up to **23%**, outperforming the broader Straits Times Index (STI) in certain quarters. - **Broadening Performance**: While 2024 saw widespread losses, 2025 featured standouts like **Alpha Integrated REIT**, which saw its unit price climb over **33.33%** year-to-date. ###### **The Catalyst: The Interest Rate Pivot** The most critical driver for the 2025 rebound was the definitive shift in interest rate trajectories. - **Lower Borrowing Costs**: After years of aggressive tightening, easing interest rates in 2025 allowed REITs to proactively refinance debt, directly lowering finance costs and boosting distributions. - **Yield Compression**: Singapore’s 10-year government bond yield declined significantly, from 2.885% at the start of the year to **2.223%** by 2025 end. This made the average REIT yield of **5.71%** increasingly attractive to yield-seeking investors. - **Currency Strength**: The Singapore dollar appreciated roughly **6.23%** against the U.S. dollar, aiding REITs with significant domestic exposure and protecting local investor returns. ###### **Looking Ahead to 2026: Sustaining Momentum** As 2025 concludes, the tailwinds for S-REITs appear to be aligning for continued performance, though operational headwinds remain. - **Favorable Valuation**: With the sector still trading at a Price-to-Book (P/B) ratio of **0.75x**—well below the pre-COVID average of 1.1x—there remains significant potential for further valuation re-rating. - **Institutional Flows**: As risk-free rates continue to trend downward, institutional capital is expected to flow back into the sector, providing further liquidity and price support. - **Focus on Resilience**: Investors are anticipated to stay focused on REITs with healthy interest coverage ratios (ICR) and disciplined leverage management. | **Exclusive REITsavvy Newsletter** | | --- | ##### Gain financial insights on REITs in minutes The newsletter that keeps you up-to-date on REITs in minutes.   ![op can-4](https://reitsavvy.com/hubfs/op%20can-4.png) **[Insights](https://reitsavvy.com/insights)** **[REITs Screener](https://screener.reitsavvy.com/)** Unless otherwise specified, all return figures shown above are for illustrative purposes only, are not actual customer or model returns and are not indicative of future performance or results. 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