The REIT sector continues to face headwinds even after the US Federal Reserve cut interest rates by one percentage point last year.
President Donald Trump’s tariff war threatens to reignite inflation and may make the central bank hold rates “higher for longer”.
Unsurprisingly, this news has resulted in persistently weak sentiment for REITs, with many of their share prices being pushed down to 52-week lows.
Investors are naturally worried about REITs’ ability to sustain their distributions.
Here are five Singapore REITs that recently touched their year-low, but we dig deeper to find out if they could witness a rebound.
iREIT Global (SGX: UD1U)
iREIT Global owns a portfolio of five freehold office properties in Germany, four freehold office properties in Spain, and 44 retail properties in France.
The portfolio had a valuation of €857.3 million as of 31 December 2024.
Shares of iREIT Global tumbled 28.6% in the past year to hit their 52-week low of S$0.24 recently.
The REIT posted a commendable set of earnings for 2024 with gross revenue rising 16.3% year on year to €75.6 million.
Net property income (NPI) improved by 7.2% year on year to €53.5 million.
Distribution per unit (DPU) inched up 1.6% year on year to €0.019.
The REIT’s occupancy rate stood at 88.5% as of 31 December 2024 and it had an aggregate leverage of 37.6% along with a low all-in cost of debt of 1.9%.
The portfolio also enjoyed a positive rental escalation of 5.8% for 2024.
Management intends to reposition the Berlin Campus into a multi-let, mixed-use asset with construction set to take place in the second quarter of 2025 (2Q 2025).
The absence of income from this property is expected to have a significant impact on the REIT’s DPU.
Mapletree Industrial Trust (SGX: ME8U)
Mapletree Industrial Trust, or MIT, is an industrial REIT with a portfolio of 56 properties in the US, 83 in Singapore, and two in Japan.
The REIT’s total assets under management (AUM) stood at S$9.2 billion as of 31 December 2024.
MIT’s unit price has declined more than 10% in the past year and the stock hit its 52-week low recently at S$1.96.
For the third quarter of fiscal 2025 (3Q FY2025) ending 31 December 2024, the industrial REIT’s revenue rose 2% year on year to S$177.3 million.
NPI increased by 2.6% year on year to S$133.2 million while DPU inched up 1.5% year on year to S$0.0341.
Apart from reporting healthy financials, MIT also boasted strong operating metrics.
Occupancy rate stood at 92.1% for 3Q FY2025 and the REIT’s portfolio enjoyed a positive rental reversion of 9.8% for renewal leases.
MIT recently concluded the purchase of a freehold property in Tokyo with the potential to be redeveloped into a new data centre.
CDL Hospitality Trust (SGX: J85)
CDL Hospitality Trust, or CDLHT, is a hospitality trust with a portfolio of 22 properties spread across countries such as Singapore, Australia, New Zealand, and Japan, to name a few.
CDLHT’s AUM stood at around S$3.5 billion as of 31 December 2024.
Shares of the hospitality trust have declined nearly 20% in a year and recently touched their 52-week low of S$0.76.
CDLHT reported a mixed set of earnings for 2024.
Revenue edged up 1% year on year to S$260.3 million but NPI dipped by 2.2% year on year to S$135.2 million.
Higher interest costs resulted in distribution per stapled security (DPSS) falling by 6.7% year on year to S$0.0532 for 2024.
The trust made its maiden investment into the purpose-built student accommodation sector last year with the acquisition of Benson Yard in Liverpool.
It also welcomed its first residents to The Castings, a build-to-rent property, with physical occupancy at 59% at the end of 2024.
The stabilised occupancy rate is projected to be above 90% by around 3Q 2025.
Frasers Centrepoint Trust (SGX: J69U)
Frasers Centrepoint Trust, or FCT, is a retail REIT with a portfolio of nine suburban shopping malls and one office building.
Shares of FCT slid 2.7% in the past year and bounced off their 52-week low of S$2.05 recently.
The retail REIT released an encouraging business update for the first quarter of fiscal 2025 (1Q FY2025) ending 31 December 2024.
The retail portfolio’s committed occupancy rate stood high at 99.5%, dipping just slightly from 99.9% reported a year ago.
FCT’s malls continued to see healthy footfall, with shopper traffic increasing by 2.7% year on year for the quarter.
Tenant sales also improved, rising 2.5% year on year for 1Q FY2025.
The REIT is conducting a new asset enhancement initiative (AEI) for Hougang Mall to elevate the retail experience there and unlock value for unitholders.
The manager is targeting a return on investment of around 7% with S$51 million slated to be spent.
CapitaLand India Trust (SGX: CY6U)
CapitaLand India Trust, or CLINT, is a REIT with a portfolio of 10 IT business parks, three industrial facilities, one logistics park, and four data centres, all located in India.
As of 31 December 2024, CLINT’s AUM stood at S$3.7 billion.
Shares of the Indian REIT have fallen nearly 8% in the past year to hit their 52-week low of S$0.94.
CLINT announced a respectable set of earnings for 2024 as total property income increased by 19% year on year to S$277.9 million.
NPI improved by 14% year on year to S$205.6 million.
DPU increased by 6% year on year to S$0.0684.
The REIT also boasted a high occupancy rate of 95% along with a moderate gearing ratio of 38.5%.
From 2025 to 2027, CLINT intends to spend S$670 million in capital expenditure to develop data centres for its portfolio.
During this development phase, interest costs will be capitalised and will not affect the REIT’s DPU.
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Disclosure: Royston Yang owns shares of Mapletree Industrial Trust.
