The post-pandemic era has demonstrated that property stocks are a resilient asset class that is worthy of a long-term slot in your portfolio.
While the market has faced headwinds from higher interest rates, high-quality properties have shown a remarkable ability to maintain value and grow rental income.
In Singapore, we are fortunate to have access to a diverse range of real estate investment trusts (REITs) and a favourable dividend policy where local income is not taxed.
That’s important.
Property stocks, after all, are prized for their dividends.
The low capital requirement to buy a stock or a REIT firmly puts this class of investment above investing in physical property itself.
The key to success remains constant: look for high-quality assets with robust fundamentals.
Here are three key categories worth watching in 2026.
New Economy Property Stocks Growing Their Rental Income
“New economy” sectors like data centres and telecommunications infrastructure have transitioned from niche trends to essential utility-like assets.
Mapletree Industrial Trust (SGX: ME8U), or MINT, has successfully pivoted its portfolio.
As of 31 December 2025, MINT’s assets under management (AUM) stood at S$8.5 billion, with data centres remaining a core pillar of growth.
The REIT recently reported a high overall portfolio occupancy of 91.4%, driven by resilient Singaporean data centre assets, partially offset by headwinds in its North American portfolio.
With widespread AI adoption and increased spending on public cloud services, these assets continue to provide high-moat rental income.
American Tower (NYSE: AMT) continues to be a primary beneficiary of the global explosion in data usage.
Now managing approximately 150,000 communication sites (as of 31 December 2025), AMT is leveraging the surge in domestic leasing activity and the emergence of agentic AI.
For the full year 2025 (FY2025), the company reported revenue of US$10.65 billion, a 5.1% increase.
With 5G hardware now deployed across 75% of its US portfolio, AMT offers a high-moat recurring revenue stream largely insulated from economic volatility.
Meanwhile, the healthcare sector remains a defensive stalwart. Parkway Life REIT (SGX: C2PU) has maintained its incredible record of uninterrupted distribution per unit (DPU) growth since its 2007 IPO.
For FY2025, it reported a DPU of S$0.1529, up 2.5% year-on-year (YoY).
Investors should watch for a “step-change” in 2026, as its Singapore hospital master leases transition to a new CPI-linked framework, with management guiding for a significant uplift in minimum rent of approximately 24%.
Resilience in Retail and Commercial Buildings
In the retail space, the “heartland” remains the hero.
Frasers Centrepoint Trust (SGX: J69U), or FCT, has seen its suburban mall portfolio reach a staggering 99.9% occupancy as at January 2026.
Despite concerns regarding retail leakage to Johor Bahru via the RTS Link, FCT’s focus on essential services and necessity spending has kept tenant sales and shopper traffic on a steady upward trajectory.
CapitaLand Integrated Commercial Trust (SGX: C38U), or CICT, has also shown immense strength.
Its FY2025 DPU rose 6.4% to S$0.1158, bolstered by the first full-year contribution from its 50% interest in ION Orchard and the acquisition of the remaining 55% interest in CapitaSpring.
CICT’s retail occupancy remains high at 98.7%, while its office portfolio has benefitted from the full contribution of CapitaSpring.
The REIT is now looking towards the future with a massive greenfield development in Hougang Central, further cementing its dominance in the Singapore retail landscape.
In Hong Kong, Hongkong Land Holdings Limited (SGX: H78) has successfully pivoted its strategy.
Despite a challenging environment in mainland China, the group reported a 9% increase in its FY2025 dividend to US$0.25 per share.
The launch of its US$6.4 billion Singapore Central Private Real Estate Fund in February 2026 signals a move towards a more capital-light, fee-earning model that should enhance long-term shareholder returns.
The Recovery is Just Gaining Momentum
While some REITs were severely impacted by the high-interest-rate environment, signs of stabilisation are emerging. Manulife US REIT (SGX: BTOU) is currently undergoing a significant “Recapitalisation Plan”.
While it has suspended distributions through 2025 to focus on debt repayment, the REIT has successfully divested several assets to pare down its 2026 debt.
As US interest rates are projected to moderate towards the end of 2026 and office occupancy begins to stabilise through active asset management, patient investors are watching for a potential reinstatement of distributions in 2026, albeit likely at a lower level than pre-crisis highs.
Get Smart: Focus on Quality and Cash Flow
The events of the last few years have reinforced a simple truth: properties with prime locations and strong management teams can weather almost any storm.
Whether it is the “uninterrupted growth” of Parkway Life REIT or the “near-full occupancy” of FCT, the objective remains the same.
Stick with quality, focus on sustainable free cash flow, and hold for the long term to ride through the inevitable cycles of the market.
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Imagine receiving steady rent increases for more than two decades. It sounds unusual, but one healthcare REIT already has rental escalations locked in until around 2042. Income visibility like this is hard to find today. We break down how this REIT built such dependable cash flow in our FREE dividend report and how it could strengthen a retirement portfolio. Get the free report here.
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Disclosure: Calvina L. does not own shares in any of the companies mentioned. Royston Y. owns shares in Mapletree Industrial Trust and American Tower.
