The REIT sector went through tough times in the last two years with elevated interest rates and soaring inflation.
These headwinds caused many REITs to report lower distributable income as operating and finance costs surged higher.
The good news is that these challenges seem to be easing.
Singapore’s core inflation was hovering at a four-year low of 0.5% in March 2025, while the US Federal Reserve cut interest rates by one percentage point in 2024.
We sifted out five Singapore REITs that managed to beat the odds and post higher distributions for their latest earnings report.
Keppel DC REIT (SGX: AJBU)
Keppel DC REIT is a data centre REIT with a portfolio of 24 data centres across 10 countries with total assets under management (AUM) of around S$4.9 billion as of 31 March 2025.
The data centre REIT reported strong earnings for the first quarter of 2025 (1Q 2025).
Gross revenue jumped 22.6% year on year to S$102.2 million while net property income (NPI) climbed 24.1% year on year to S$88.1 million.
The better performance was attributed to acquisitions of two data centres in Singapore and one in Tokyo, along with rental escalations and higher contributions from contract renewals.
Finance income surged 40.1% year on year because of the Australian data centre note.
Distribution per unit (DPU) increased by 14.2% year on year to S$0.02503.
Keppel DC REIT’s portfolio occupancy stayed high at 96.5% with a long weighted average lease expiry (WALE) of 7.1 years by lettable area.
The REIT’s portfolio also saw a positive rental reversion of 7%, and management is conducting an asset repositioning review to build a future-proof portfolio.
Mapletree Industrial Trust (SGX: ME8U)
Mapletree Industrial Trust, or MIT, is an industrial REIT with a portfolio of 141 properties across the US (56), Singapore (83), and Japan (2).
These properties include data centres, hi-tech buildings, and business parks, and the REIT’s AUM stood at S$9.1 billion as of 31 March 2025.
MIT reported a respectable result for its fiscal 2025 (FY2025) ending 31 March 2025, as gross revenue rose 2.1% year on year to S$711.8 million.
The higher revenue came about because of contributions from the completion of the second and third phases of fitting-out works for its Osaka data centre and freehold mixed-use facility in Tokyo.
NPI rose 2% year on year to S$386 million and DPU inched up 1% year on year to S$0.1357.
MIT’s portfolio occupancy stayed high at 91.6% with a WALE of 4.4 years by gross rental income (GRI).
Its Singapore properties enjoyed a positive rental reversion of 8.1% for the latest quarter and portfolio valuation stayed stable at S$9 billion.
Aggregate leverage came in at 40.1% with an average borrowing cost of 3%, down slightly from 3.1% in the previous quarter (3Q FY2025).
The REIT also has 78.1% of its loans pegged to fixed rates to mitigate higher borrowing costs.
AIMS APAC REIT (SGX: O5RU)
AIMS APAC REIT, or AAREIT, is an industrial REIT with a portfolio of 28 properties in Singapore (25) and Australia (3).
Its portfolio value stood at S$2.13 billion as of 31 March 2025.
For FY2025, AAREIT’s gross revenue rose 5.3% year on year to S$186.6 million, driven by the resilient portfolio performance and strong rental reversions.
NPI edged up 2.1% year on year to S$133.7 million while DPU improved by 2.6% year on year to S$0.096.
AAREIT’s portfolio occupancy stood high at 93.6% and the portfolio also enjoyed a positive rental reversion of 20%.
The industrial REIT had a very low gearing level of 28.9% and 85% of its borrowings are on fixed rates.
The REIT has identified two asset enhancement initiatives (AEIs) involving refurbishment and repositioning for two industrial properties in Singapore.
These two AEIs should be completed by the second quarter of fiscal 2026.
Frasers Centrepoint Trust (SGX: J69U)
Frasers Centrepoint Trust, or FCT, is a retail REIT with a portfolio of nine suburban retail malls and an office building.
FCT’s AUM stood at approximately S$7.1 billion as of 31 March 2025.
The retail REIT reported a sturdy set of earnings for the first half of fiscal 2025 (1H FY2025) ending 31 March 2025.
Gross revenue improved by 7.1% year on year to S$184.4 million, with better contributions from renewed and new leases signed.
NPI increased by 7.3% year on year to S$133.7 million and DPU inched up 0.5% year on year to S$0.06054.
FCT’s portfolio occupancy was stable at 99.5%, down from the prior quarter’s 99.9%.
The portfolio also enjoyed a positive rental reversion of 9% for 1H FY2025, an improvement from the 7.5% registered last year.
Investors should note that both shopper traffic and tenant sales also increased by 1% and 3.3% year on year for 1H FY2025, respectively.
Suntec REIT (SGX: T82U)
Suntec REIT is a retail and commercial REIT that holds stakes in properties such as Suntec City, an interest in One Raffles Quay, and an interest in Marina Bay Financial Centre.
The REIT also owns properties in Australia and the UK with total AUM of around S$12.1 billion as of 31 March 2025.
For 1Q 2025, Suntec REIT’s gross revenue increased by 3.4% year on year to S$113.5 million while NPI rose 5% year on year to S$77.1 million.
DPU rose 3.4% year on year to S$0.01563.
The REIT boasted strong operating metrics with its Singapore office and retail committed occupancies at 98.7% and 98.2%, respectively.
Australia’s committed occupancy stood at 90.9% while UK’s was at 95.3%.
For Singapore, Suntec REIT saw positive rental reversion of 8% for the office division and 10.3% for its retail division.
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Disclosure: Royston Yang owns shares of Suntec REIT, Keppel DC REIT and Mapletree Industrial Trust.
