Singapore real estate investment trusts (REITs) offer a way to earn passive income from property without buying any yourself.
Two of the best known, though, collect that income from two very different property types.
Keppel DC REIT (SGX: AJBU), or KDCREIT, offers exposure to secular technology trends (AI and cloud computing) through its various data centres.
On the other hand, CapitaLand Integrated Commercial Trust (SGX: C38U), or CICT, takes a more traditional route with malls, offices and integrated developments.
Let’s find out which one offers the better risk-reward balance today.
Distributions and Key Performance Metrics
| Metric / Attribute | Keppel DC REIT (SGX: AJBU) | CapitaLand Integrated Commercial Trust (SGX: C38U) |
| Latest and Last 12 Months (LTM) Distribution Per Unit (DPU) | 1H2026: S$0.05714LTM: S$0.10962 | 1H2026: S$0.0602 LTM: S$0.1198 |
| DPU Growth | 11.3% in 1H2026(~1.3% p.a. since FY2021) | 7.1% in 1H2026(~2.7% p.a. since FY2021) |
| Distribution Yield | 5.30% (LTM) | 5.42% (LTM) |
| Price-to-net asset value (NAV) | 1.24x | 1.03x |
| Aggregate Leverage | 34% (rising to ~38% after Tokyo acquisition) | 37.4% |
Understanding the Two REITs
As at 30 June 2026 (1H2026), KDCREIT owns 25 data centres across ten countries, with Singapore the biggest market at 62.8% of assets under management.
Internet companies are the main customers, supplying 70.4% of rental income.
Colocation leases, which bring in roughly 74% of the rent, last only 2.8 years on average, so renewals come around quickly.
Occupancy stands at 92.5%, but a tenant has vacated the Cardiff site, and without it the figure would be 95.3%.
Customers have already signed up for about 95% of its power capacity.
At renewal, rents rose by about 10% on average in 1H2026, and the REIT grew by buying or upgrading data centres.
Almost all of CICT’s portfolio is in Singapore.
At the end of 1H2026 (30 June 2026), 97.7% of retail space was occupied, against 94.4% of offices and 95.5% of integrated developments.
Its retail leases have a weighted average expiry of just 2.0 years, so CICT can reprice shop space regularly.
Rents on renewed retail leases rose 4.0%, and on office leases 6.5%, in 1H2026, supporting CICT’s distributable income.
Which REIT Offers More Reliable Distributions?
| DPU (S$) | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | 1H2026 |
|---|---|---|---|---|---|---|
| Keppel DC REIT | S$0.09851 | S$0.10214 | S$0.09383 | S$0.09451 | S$0.10381 | S$0.05714 |
| CICT | S$0.1040 | S$0.1058 | S$0.1075 | S$0.1088 | S$0.1158 | S$0.0602 |
Both raised DPU in 1H2026, by 11.3% at KDCREIT and 7.1% at CICT.
Since FY2021, though, CICT’s DPU has grown 11.3%, or 2.7% a year, and has risen every year.
KDCREIT grew about 1.3% a year, with a single decline, in 2023.
Neither REIT splits organic growth from acquisitions, but unit counts help.
KDCREIT’s unit count has risen substantially over the past few years as the REIT used equity to buy assets.
In 1H2026, its distributable income rose 18.5% but DPU only 11.3%.
Similarly, CICT issued new units to help fund its latest acquisition, Paragon.
Concentration matters for sustainability.
A single hyperscaler, meaning a very large cloud operator, supplies more than 40% of KDCREIT’s rental income.
Keppel DC Singapore 1 is a weak spot: it was only 46.5% occupied at 30 June 2026, and its contracts averaged just 1.1 years.
CICT’s largest tenant supplies 4.6% of rent, and its top ten tenants, 16%.
| KDCREIT | CICT | |
|---|---|---|
| LTM DPU | S$0.10962 | S$0.1198 |
| Unit price* | S$2.07 | S$2.21 |
| Distribution yield | 5.30% | 5.42% |
| Yield on FY2025 DPU | 5.01% | 5.24% |
CICT offers a slightly higher yield.
However, yield only compares past distributions with today’s price and says nothing about growth or risk, so the gap alone settles little.
Financial Strength: Which Balance Sheet Is Healthier?
| As at 30 June 2026 | KDCREIT | CICT |
|---|---|---|
| Aggregate leverage | 34.0% | 37.4% |
| Interest coverage ratio | 6.9x | 3.9x |
| Average cost of debt | 2.6% | 2.9% |
| Fixed-rate borrowings | 87% | 78% |
| Average debt maturity | 3.1 years | 4.1 years |
KDCREIT wins four of five measures, but its shorter 3.1-year average debt term means it will need to refinance its S$2.3 billion of debt sooner than CICT.
A 0.25-percentage-point rate change moves KDCREIT’s DPU by about 0.3%, roughly 1.2% for a full percentage point.
For CICT, a one-percentage-point rate rise would cut DPU by about S$0.0027, or around 2%.
In September 2026, KDCREIT agreed to buy stakes in two Tokyo data centres for about S$1.37 billion, partly funded by a S$625 million placement of new units at S$2.10 each.
Aggregate leverage is expected to rise from 34.0% to about 38.0%, just under its 40% internal leverage limit.
CICT funded Paragon with a S$750 million placement at S$2.30 a unit, debt, and the S$2.476 billion sale of Asia Square Tower 2.
Growth Potential: Data Centres vs Retail and Offices
KDCREIT has the stronger tailwind, with reversions of about 10% for 1H2026 and steady cloud and AI demand.
The risks are power supply, reliance on one large client, capital spending and shifts in AI workloads.
Faster distributable income growth likely needs acquisitions and, as the Tokyo deal shows, fresh equity.
CICT’s growth is slower but easier to see.
Paragon, bought at a 3.9% yield, adds about 1.7% to full-year DPU, with roughly half showing up in 2027.
Add organic growth of 1.5% to 2%, and DPU growth of about 2.5% in 2027 looks plausible.
Asset enhancement initiatives (AEIs) at Tampines Mall and Lot One could add an estimated 0.5% or so, based on their capex and expected returns.
Over the long term, KDCREIT has the higher ceiling thanks to its structural tailwind, but the REIT is dependent on power, a few clients and fresh equity.
CICT grows slowly from a diversified base.
Valuation: Which REIT Offers Better Value Today?
| KDCREIT | CICT | |
|---|---|---|
| Unit price* | S$2.07 | S$2.21 |
| NAV per unit, 30 Jun 2026 | S$1.67 | S$2.15 |
| Price-to-NAV | 1.24x | 1.03x |
| Distribution yield (LTM) | 5.30% | 5.42% |
KDCREIT trades 24% above NAV and CICT 3% above.
A premium can be justified by faster growth and a cleaner balance sheet, but it raises expectations.
KDCREIT’s DPU grew just 1.3% a year over four years, and part of the latest jump came from buying out the remaining stakes in Keppel DC Singapore 3 and 4, not just rent growth.
Higher interest costs on acquisition loans offset part of the gain.
Both trade near the bottom of their 52-week price ranges, so both yields sit near the top, CICT’s more so.
Total return is roughly yield plus DPU growth.
Assume yields stay put for three years.
If KDCREIT’s DPU grows 5% a year (well above its 1.3% track record) and CICT’s grows 3%, KDCREIT returns about 10% a year and CICT about 8.4%.
But KDCREIT trades at 1.24 times NAV.
If that premium shrinks to 1.10 times over three years, its return falls to about 6%, and it would need DPU growth of about 7% a year to keep pace with CICT.
At its historical growth rate, KDCREIT would trail CICT even if its premium held.
Get Smart: Which REIT Would I Buy Today?
KDCREIT’s case rests on its growth and its balance sheet, with 1H2026 DPU up 11.3% and leverage of 34%, rising to about 38% after the Tokyo deal.
CICT’s case rests on income and price, with a 5.42% yield and a DPU that has risen every year since FY2021.
Which REIT to buy depends on whether you’re comfortable trading lower income today for faster growth (KDCREIT), or prefer stable income diversified across multiple tenants and property types (CICT).
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Disclosure: Wilson H. does not own units in any of the REITs mentioned.
