The REITs sector has long been a cornerstone of Singapore’s investment landscape, offering investors a blend of stability and income.
As we enter the final quarter of 2025, REITs face a dynamic environment shaped by interest rates volatility, changing tenant needs, and structural trends like digitisation, creating diverging fortunes across sectors.
Traditional office and retail players contend with shifting work patterns and evolving consumer behavior, while specialized sectors like data centers capitalise on surging AI-driven demand.
For income investors, the key lies in identifying REITs that can weather these shifts while sustaining distributions and growth.
This October, we look at three Singapore REITs, each offering a distinct risk-return profile.
Keppel DC REIT (SGX: AJBU): Second Japanese Data Centre
Keppel DC REIT delivered exceptional first-half 2025 (1H2025) results, with distribution per unit (DPU) rising 12.8% year on year (YoY) to S$0.05133.
Gross revenue surged 34.4% to S$211.3 million, while net property income climbed 37.8% to S$182.8 million.
Strategic acquisitions, alongside a strong 51% rental reversion from a major contract renewal, drove this exceptional performance.
Building on this momentum, the REIT is acquiring a 98.47% stake in Tokyo Data Centre 3 for approximately S$707 million.
This freehold hyperscale facility in Greater Tokyo is fully contracted to a leading global hyperscaler for 15 years with built-in annual rent escalation, offering cash flow resilience compared to Japan’s predominantly fixed-rent market.
The acquisition is 2.8% DPU-accretive and strengthens the REIT’s position in the largest data centre hub in Asia Pacific (excluding China), where strong demand meets constrained supply due to power and construction limitations.
Post-acquisition, assets under management will reach S$5.7 billion across 25 data centres in 10 countries, with portfolio occupancy expected to improve to 95.9%, and weighted average lease expiry (WALE) extending to 7.2 years.
With AI workloads projected to comprise 70% of global data centre demand by 2030, the REIT is well-positioned to benefit from structural tailwinds.
Investors can expect further insights when the REIT reports its latest results on 29 October 2025.
Keppel REIT (SGX: K17U): A Strategic Pivot to Retail
Keppel REIT marked a strategic milestone on 8 October 2025 with its first retail acquisition – a 75% stake in Top Ryde City Shopping Centre in Sydney for approximately S$334.8 million.
The freehold mall delivers a 6.7% initial property yield with 1.34% pro forma DPU accretion, while its defensive tenant mix — 77% from non-discretionary tenants like Coles, Woolworths, and ALDI — provide income resilience.
Post-acquisition, the REIT’s portfolio will expand to S$9.8 billion across 14 properties in Singapore, (76.0%), Australia (20.2%), South Korea (2.9%), and Japan (0.9%), with office assets forming the core at 95.8%, and retail assets comprising 4.2%.
This move comes amid mixed results by the REIT.
For 1H2025, Keppel REIT showed operation strength, with property income rising 9.1% YoY to S$136.5 million and net property income surging 11.8% to S$108.3 million, driven by contributions from 255 George Street and higher occupancy at 2 Blue Street.
However, DPU fell 2.9% to S$0.0272, as management now receives 25% of its fees in cash versus 100% in units previously.
Portfolio occupancy remained healthy at 95.9% with robust rental reversion of 12.3%, and a 4.8-year WALE.
Similarly, Keppel REIT will report its latest results on 29 October 2025.
Lendlease Global Commercial REIT (SGX: JYEU): Retooling for Growth
Lendlease Global Commercial REIT, or LREIT, entered into an agreement following the financial year end to divest the Jem office component for S$462 million.
Net proceeds will be used predominantly to repay debt, reducing gearing from 42.6% to approximately 35% on a pro forma basis, strengthening the REIT’s capital structure and positioning it for future growth.
LREIT owns Jem and 313@Somerset in Singapore, and Sky Complex in Milan, with total assets under management of S$3.76 billion as of 30 June 2025.
Fiscal year 2025 (FY2025) results showed gross revenue declining 6.5% YoY to S$206.5 million, and net property income falling 10.0% YoY to S$148.8 million.
DPU tumbled 6.9% year on year to S$0.036, reflecting the prior year’s upfront supplementary rent from Sky Complex’s lease restructuring.
Despite revenue headwinds, portfolio fundamentals remain solid with 92.1% committed occupancy (retail at 99.5%; office at 86.6%), and positive retail rental reversion of 10.2% for the year.
Construction of a multifunctional event space adjacent to 313@Somerset has commenced, with completion expected in the second half of 2026, further strengthening the REIT’s Somerset precinct presence.
LREIT is expected to provide a business update on 30 October 2025.
Get Smart: Three REITs, Three Different Paths Forward
These three Singapore REITs offer distinctly different value propositions for income investors.
Keppel DC REIT stands out with its compelling growth narrative, though investors should monitor its ability to sustain accretive acquisitions amid competitive markets.
Meanwhile, Keppel REIT offers solid operational performance, but the REIT’s exposure to office-heavy markets warrants attention given evolving workplace trends.
LREIT prioritises balance sheet repair over growth, but with DPU down and the smallest portfolio among the three, it appeals to investors favoring capital preservation over immediate income.
Yet, they share one common trait: the ability to deliver steady income.
Dividends remain a powerful way to grow wealth over time.
With the month ushering in fresh opportunities, investors ought to keep an eye on how these REITs navigate interest rate shifts, property acquisitions and tenant demand.
Positioning your portfolio with reliable payers today could set you up for stronger returns tomorrow.
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Disclosure: Joanna Sng owns shares of Keppel DC REIT.
