The REIT sector continues to face headwinds in the form of elevated interest rates.
Interest rates look likely to stay “higher for longer” and will continue to pressure REITs’ distributions.
However, there is a small crop of Singapore REITs (S-REITs) that managed to buck the trend.
Here are four that managed to eke out a higher distribution per unit (DPU) despite the macroeconomic challenges.
OUE REIT (SGX: TS0U)
OUE REIT is a diversified REIT with a portfolio of six high-quality office, hospitality and retail assets in Singapore.
The REIT’s total assets under management (AUM) stood at S$5.8 billion as of 31 December 2024.
OUE REIT reported a mixed set of results for the first half of 2025 (1H 2025).
Revenue and net property income (NPI) fell by 10.6% and 10.1% year on year, respectively, because of the absence of contributions from the divested Lippo Plaza Shanghai.
Stripping this out, like-for-like revenue and NPI would have dipped by just 2.7% and 2%, respectively, to S$131.1 million and S$105.3 million.
With a higher share of results from joint ventures, OUE REIT managed to increase its DPU by 5.4% year on year to S$0.0098.
The REIT continued to boast a high portfolio occupancy of 95.5% as of 30 June 2025.
OUE REIT also enjoyed a positive rental reversion of 9.1% for the second quarter of this year (2Q 2025) for its office division.
Its Mandarin Gallery retail asset saw a high committed occupancy of 99% and reported a robust positive rental reversion of 34.3%.
Sabana REIT (SGX: M1GU)
Sabana REIT is an industrial REIT with a portfolio of 18 properties taking up approximately 4.2 million square feet.
The REIT has an AUM of around S$1 billion as of 31 December 2024.
The REIT reported a sparkling set of earnings for 1H 2025 with gross revenue rising 7.6% year on year to S$59.3 million.
NPI climbed 23.4% year on year to S$33.5 million, and DPU shot up 26.9% year on year to S$0.017.
The better performance was because of higher occupancy and positive rental reversions.
Portfolio occupancy came in at 85.7%, higher than 2024’s 85% but dipping slightly from 1q 2025’s 86.4%.
The REIT registered a positive rental reversion of 12.6%.
Sabana REIT is also carrying out portfolio rejuvenation works at 508 Chai Chee Lane.
The main entrance drop-off point and modernisation of cargo and passenger lifts were completed by June 2025.
Keppel DC REIT (SGX: AJBU)
Keppel DC REIT is a data centre REIT with a portfolio of 24 data centres across 10 countries.
The REIT’s total AUM stood at around S$5 billion as of 30 June 2025.
Keppel DC REIT reported a strong financial performance for 1H 2025, lifted by contributions from the acquisition of two data centres in Singapore and a Tokyo data centre.
Gross revenue leapt 34.4% year on year to S$211.3 million.
NPI shot up 37.8% year on year to S$182.8 million while DPU increased 12.8% year on year to S$0.05133.
The data centre REIT’s occupancy stood high at 95.8% and the portfolio recorded a positive portfolio rental reversion of around 51% for 1H 2025.
The manager continues to look for potential third-party acquisition opportunities in Japan, South Korea, and Europe, with a focus on hyperscale data centres.
Keppel DC REIT is also undergoing dynamic portfolio management.
The manager is conducting an ongoing review of asset repositioning and power intensification opportunities to help unlock value for unitholders.
Artificial intelligence will continue to power demand for data centres, with the Asia-Pacific data centre colocation market set to become the largest in the world by 2030.
Suntec REIT (SGX: T82U)
Suntec REIT owns properties in Singapore, such as stakes in Suntec City Convention Centre and One Raffles Quay, along with stakes in commercial buildings in Australia and the UK.
Gross revenue for 1H 2025 inched up 3.3% year on year to S$234.5 million.
NPI improved by 5.6% year on year to S$159.5 million, and DPU increased by 3.7% year on year to S$0.03155 for 1H 2025.
Singapore saw high committed occupancy of 99% for its office portfolio and 98% for its retail portfolio.
Rental reversion also came in strong at 10% and 17.2%, respectively.
Australia’s committed occupancy stood at 88.6%, dipping slightly below 1H 2024’s 89.1%, but the country reported a strong positive rental reversion of 22.9%.
As for the UK, committed occupancy dipped from 95.5% to 92.2% year on year.
Suntec REIT reported an aggregate leverage ratio of 41.1% as of 30 June 2025, along with an all-in financing cost of 3.82%.
The cost of debt was a welcome decline from the 4.06% logged just six months ago.
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Disclosure: Royston Yang owns shares of Keppel DC REIT and Suntec REIT.
