With the next earnings season just around the corner, investors will be curious to see how the REIT sector is performing.
REITs had a tough time in the last three years as interest rates soared and inflation reared its ugly head.
The result was lower distributions as REITs had to grapple with overall higher costs.
However, there is a select group of Singapore REITs that we believe can buck the trend.
Here are four that look well-positioned to continue raising their distributions.
Parkway Life REIT (SGX: C2PU)
Parkway Life REIT, or PLife REIT, is a healthcare REIT with a portfolio of 75 properties located in Singapore (3), Japan (60), France (11), and Malaysia (1).
The portfolio’s value stood at S$2.46 billion as of 31 December 2024.
The REIT has a stellar track record of uninterrupted increases in core distribution per unit (DPU) since its IPO in 2007.
PLife REIT reported a commendable set of earnings for the first quarter of 2025 (1Q 2025).
Gross revenue rose 7.3% year on year to S$39 million while net property income (NPI) increased by 7.5% year on year to S$36.8 million.
DPU for the quarter inched up 1.3% year on year to S$0.0384.
The better result was because of contributions from a Japanese nursing home acquired in August 2024, along with the purchase of 11 nursing homes in France back in December last year.
For the first half of 2025 (1H 2025), PLife REIT should still enjoy the contributions from these acquired assets that will lift its NPI and distributable income.
For 2026, the REIT’s Singapore hospitals will see a 24.4% year-on-year jump in rental income in line with the renewed master lease agreement signed in 2022.
This increase will bode well for the REIT and should enable it to report continuously higher DPU.
CapitaLand Ascendas REIT (SGX: A17U)
CapitaLand Ascendas REIT, or CLAR, is Singapore’s oldest industrial REIT with a portfolio of 226 properties worth S$16.9 billion as of 31 March 2025.
The REIT demonstrated its ability to grow its DPU when it announced a minor 0.5% year-on-year increase for 2024 to S$0.15205.
This performance was achieved on the back of a 2.9% year-on-year increase in revenue and a 2.6% year-on-year improvement in NPI.
Contributions from acquired properties and the robust performance of the core portfolio enabled CLAR to increase its DPU.
For 1H 2025, things are looking up.
The industrial REIT reported a high portfolio occupancy of 91.5% for 1Q 2025 and a positive rental reversion of 11%.
The REIT also completed a yield-accretive acquisition of two Singapore properties for S$700 million back in May 2025.
Meanwhile, the REIT also has six ongoing projects to boost organic rental income.
These projects cost close to S$500 million and will be completed progressively from 3Q 2025 to 1Q 2028.
Keppel DC REIT (SGX: AJBU)
Keppel DC REIT is a data centre REIT with a portfolio of 24 data centres spread across 10 countries.
The total assets under management (AUM) of the REIT stood at around S$4.9 billion as of 31 March 2025.
Acquisitions helped to boost the data centre REIT’s DPU for 1Q 2025.
Gross revenue climbed 22.6% year on year to S$102.2 million, with NPI surging 24.1% year on year to S$88.1 million.
DPU increased by 14.2% year on year to S$0.02503.
The REIT is on track to report a strong set of financial numbers for 1H 2025, with the acquisitions of two Singapore data centres and a Tokyo one continuing to contribute to NPI.
Contract renewals will also result in positive rental reversion, which will provide organic rental income growth.
Rental escalation clauses within existing tenancy agreements will also contribute to higher revenue and NPI.
With strong demand for data centres, Keppel DC REIT looks well-positioned to continue reporting positive rental reversions.
Mapletree Industrial Trust (SGX: ME8U)
Mapletree Industrial Trust, or MIT, is an industrial REIT with a portfolio of 141 properties spread across Singapore (83), the US (56), and Japan (2).
The REIT’s AUM stood at S$9.1 billion as of 31 March 2025.
For its fiscal 2025 (FY2025) ending 31 March 2025, MIT reported a 2.1% year-on-year increase in gross revenue to S$711.8 million.
NPI rose 2% year on year to S$531.5 million.
DPU increased by 1% year on year to S$0.1357.
The REIT saw healthy tenant retention of 82.6% for its most recent quarter and also logged a positive rental reversion of 8.1% for renewal leases.
MIT also completed the acquisition of a freehold property in Tokyo in October 2024 that will help to add to its NPI and DPU.
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Disclosure: Royston Yang owns shares of Keppel DC REIT and Mapletree Industrial Trust.
