If you are starting on your investment journey, great job!
The important thing is to begin, as this move represents your first step in compounding your money towards a comfortable retirement.
And if you plan to become an income investor who receives dividends as a passive income source, the REIT sector is a great place to look for suitable investments.
You should look for key REIT attributes such as a strong sponsor, a high-quality portfolio, and a solid track record of growing their distributions.
Here are four Singapore REITs that are ideal for starting to build your income portfolio.
CapitaLand Ascendas REIT (SGX: A17U)
CapitaLand Ascendas REIT, or CLAR, is Singapore’s largest and oldest industrial REIT.
CLAR’s portfolio consists of 226 properties spread across Singapore, Europe, the UK, Australia, and the US.
The portfolio was worth US$16.9 billion as of 31 March 2025, and CLAR has a strong sponsor in blue-chip real estate manager CapitaLand Investment Limited (SGX: 9CI).
CLAR has done an admirable job of growing its distribution per unit (DPU) despite the twin challenges of high interest rates and inflation.
For 2024, gross revenue rose 2.9% year on year to S$1.52 billion while net property income (NPI) increased by 2.6% year on year to S$1.05 billion.
The industrial REIT’s DPU inched up 0.3% year on year to S$0.15205.
CLAR reported strong operating metrics during its first quarter of 2025 (1Q 2025) business update.
Portfolio occupancy stood high at 91.5% and the portfolio also saw a positive rental reversion of 11%.
Meanwhile, the REIT has six ongoing projects worth S$498.4 million that are undergoing refurbishment or redevelopment to improve the portfolio’s quality and boost rental income.
CapitaLand Integrated Commercial Trust (SGX: C38U)
CapitaLand Integrated Commercial Trust, or CICT, is a retail and commercial REIT with a portfolio of 26 properties located in Singapore (21), Germany (2), and Australia (3).
CICT’s portfolio was valued at S$26 billion as of 31 December 2024, and the REIT also shares the same sponsor as CLAR.
Like CLAR, CICT also demonstrated resilience and reported an admirable performance despite facing macroeconomic challenges.
Gross revenue for 2024 increased by 1.7% year on year to S$1.59 billion, while NPI climbed 3.4% year on year to S$1.15 billion.
The REIT’s DPU rose 1.2% year on year to S$0.1088.
1Q 2025 also saw CICT report solid operating metrics that cemented its reputation as one of the leading blue-chip REITs on the Singapore exchange.
Portfolio occupancy stood high at 96.4% and rental reversion came in positive at 10.4% for its retail division, and 5.4% for its office division.
Moreover, its malls attracted healthy footfall and tenant sales.
Shopper traffic jumped 23% year on year for 1Q 2025 while tenant sales climbed 17.5% year on year.
Keppel DC REIT (SGX: AJBU)
Keppel DC REIT is a data centre REIT with a portfolio of 24 data centres across 10 countries.
As of 31 March 2025, Keppel DC REIT’s assets under management (AUM) stood at approximately S$4.9 billion.
The REIT is also backed by a strong sponsor in blue-chip asset manager Keppel Ltd (SGX: BN4).
After posting a year-on-year increase in DPU to S$0.09451 for 2024, the data centre REIT has continued this impressive streak during 1Q 2025.
Gross revenue for the quarter shot up 22.6% year on year to S$102.2 million.
NPI leapt 24.1% year on year to S$88.1 million, with DPU rising 14.2% year on year to S$0.02503.
Data centres have a favourable long-term outlook as strong demand for digitalisation and artificial intelligence should sustain rental growth and keep occupancy high.
Keppel DC REIT’s portfolio occupancy came in high at 96.5% and the REIT also saw a positive rental reversion of 7% even in the absence of major contract renewals.
Frasers Centrepoint Trust (SGX: J69U)
Frasers Centrepoint Trust, or FCT, is a retail REIT with a portfolio of nine suburban malls and an office building, all located in Singapore.
FCT’s AUM stood at around S$7.1 billion as of 31 March 2025.
The REIT is backed by a solid sponsor in property development and investment firm Frasers Property Limited (SGX: TQ5).
Like the three REITs mentioned above, FCT has also pulled off a commendable performance for the first half of fiscal 2025 (1H FY2025) ending 31 March 2025.
Gross revenue climbed 7.1% year on year to S$184.4 million because of an additional 24.5% stake in Gold Ridge, and also better performances from its Waterway Point and NEX assets.
NPI increased by 7.3% year on year to S$133.7 million, and DPU crept up 0.5% year on year to S$0.06054.
There could be more in store for unitholders.
The REIT reported a very high retail portfolio occupancy of 99.5% with a positive rental reversion of 9%, pointing to strong demand for its retail spaces.
Both tenant sales and shopper traffic also posted year-on-year increases of 3.3% and 1%, respectively, for 1H FY2025.
FCT recently concluded its acquisition of Northpoint City South Wing, which promises to be accretive to its DPU.
After completing its asset enhancement initiative (AEI) for Tampines 1 Mall last August, FCT is embarking on its next AEI – this time for Hougang Mall.
The phased AEI commenced in April 2025 and is targeted to be completed by 3Q 2026.
Costing S$51 million, management is targeting around a 7% return on investment.
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Disclosure: Royston Yang owns shares of Keppel DC REIT.
