REIT investors have taken it on the chin for nearly three years as REITs reeled from a combination of high interest rates and soaring inflation.
There’s a silver lining, though.
Interest rates looked to have stabilised, and Singapore just reported that core inflation has hit a four-year low of just 0.5% in March 2025.
The key is to look for REITs with strong operational characteristics that can withstand these headwinds.
Two important characteristics are the REIT’s occupancy rate and positive rental reversions.
Here are five REITs that reported healthy operational metrics that could see them report higher distributions.
Lendlease Global Commercial REIT (SGX: JYEU)
Lendlease Global Commercial REIT, or LREIT, owns a portfolio of five properties comprising 313 @ Somerset and Jem in Singapore along with Sky Complex in Milan, Italy.
For its third quarter of fiscal 2025 (3Q FY2025) business update, LREIT enjoyed a portfolio committed occupancy of 92.1%.
Its retail portfolio also saw a positive rental reversion of 10.4% year-to-date, while its office rental uplift for the Singapore portfolio came in at 13%.
Tenant retention by net lettable area stood high at close to 88%.
The manager of LREIT also engages in active asset management to enhance the attractiveness of its properties.
Shaw Theatres, Lululemon (NASDAQ: LULU) and Chagee (NASDAQ: CHA) were signed as new tenants in Jem.
Restroom facilities at the mall also commenced refurbishment with work scheduled for completion by the first quarter of 2026 (1Q 2026).
An asset enhancement initiative (AEI) was also completed at the ground lobby of Sky Complex’s Building 3.
AIMS APAC REIT (SGX: O5RU)
AIMS APAC REIT, or AAREIT, owns a portfolio of 28 properties spread across Singapore (25) and Australia (3).
The REIT reported a strong set of results for fiscal 2025 (FY2025) ending 31 March 2025 with gross revenue rising 5.3% year on year to S$186.6 million.
Distribution per unit inched up 2.6% year on year to S$0.096.
AAREIT boasted strong operating metrics which should see the REIT continue to do well in the foreseeable future.
Portfolio occupancy stood high at 93.6% with a positive rental reversion of 20%.
The REIT and its joint venture partner invested in an AEI for Optus Centre Campus in Macquarie Park.
This AEI involves the construction of a premium event space to revitalise the entire campus.
Over in Singapore, two AEIs are in progress at 7 Clementi Loop and 15 Tai Seng Drive.
Both are expected to be completed by 2026 at a total cost of S$32 million and yield a projected net property income (NPI) yield of over 7%.
Keppel REIT (SGX: K91U)
Keppel REIT owns a portfolio of 13 properties spread across Singapore (4), Australia (7), South Korea (1), and Japan (1).
The commercial REIT reported a strong portfolio occupancy of 96% for the first quarter of 2025 (1Q 2025).
The portfolio also enjoyed positive rental reversion of 10.6%.
For the quarter, property income increased by 12.1% year on year to S$68.7 million and distributable income (assuming all management fees are paid in units) inched up 3.2% year on year to S$57 million.
Keppel REIT completed the AEI at Building D of Pinnacle Office Park in Sydney with a heads of agreement signed with a tenant for around 75% of the space.
The REIT also completed four fitted suites at 255 George Street, secured a tenant for one suite and signed a heads of agreement for another.
CapitaLand Ascendas REIT (SGX: A17U)
CapitaLand Ascendas REIT, or CLAR, is Singapore’s oldest industrial REIT with a portfolio of 226 properties worth close to S$17 billion.
Its 1Q 2025 business update saw the REIT report a healthy portfolio occupancy of 91.5%.
CLAR’s portfolio rental reversion came in at positive 11% for the quarter.
The industrial REIT undertook a redevelopment project at Science Park Drive for S$300.2 million in 1Q 2025 and also completed two AEIs in Singapore and the US for S$4.6 million.
CLAR currently has six ongoing projects worth close to S$500 million in Singapore and US.
The estimated completion dates for these AEIs range from 3Q 2025 to 1Q 2028.
Stoneweg European REIT (SGX: CWBU)
Stoneweg European REIT, or SERT, owns more than 100+ predominantly freehold properties across European countries such as Italy, France, Poland, Denmark, and the UK, among others.
The REIT saw gross revenue edge up 0.5% year on year to €53.6 million in 1Q 2025, but indicative DPU fell by 3.7% year on year to €0.03374 mainly because of higher interest expense.
Despite the lower indicative DPU, SERT reported total portfolio occupancy of 92% and also enjoyed a positive rental reversion of 1.7% across its portfolio.
The REIT highlighted two upcoming and committed AEIs for industrial buildings in Slovakia and the UK costing a total of €15 million.
Another AEI costing €130 million in the Netherlands is in the early planning phase.
SERT’s manager is evaluating SWI Group’s right-of-first-refusal pipeline, which includes properties such as logistics assets and complementary asset classes such as data centres.
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Disclosure: Royston Yang does not own shares in any of the companies mentioned.
