The earnings season for Singapore Real Estate Investment Trusts, or S-REITs, has provided plenty of food for thought for income-seeking investors.
Despite a complex macroeconomic backdrop, the fundamental operations of high-quality REITs appear to be firing on all cylinders.
The focus this season has shifted from merely surviving high interest rates to thriving through proactive portfolio rejuvenation and capturing the massive demand for specialized space.
Whether it is the digital explosion, the logistics boom, or the resilience of Grade A office spaces, the latest results from three prominent players suggest that the underlying business of rent collection remains robust.
Digital Core REIT (SGX: DCRU) – Powering Through the AI Revolution
Digital Core REIT delivered a powerhouse performance for the full year ended 31 December 2025.
The pure-play data centre specialist saw its gross revenue surge by a staggering 72.2% year on year (YoY) to US$176.2 million, while net property income (NPI) climbed 43.5% to US$88.7 million.
These eye-popping increases were primarily driven by the strategic consolidation of its Frankfurt facility and the successful completion of an acquisition in Osaka.
While the distribution per unit (DPU) remained steady at US$0.0360, matching the previous year, it still offered a generous annualized yield of 6.85% for those holding at the closing price of US$0.525.
What truly stands out is the relentless demand for data processing capacity.
The REIT reported a healthy portfolio occupancy of 97.3% and achieved a positive cash rental reversion of 31% for the year.
A standout transaction occurred at its Linton Hall facility in Northern Virginia, where a new 10-year lease with a cloud provider was signed at a 35% premium over previous rates.
This deal alone helped lengthen the portfolio’s weighted average lease expiry (WALE) to 5.5 years.
With a conservative aggregate leverage of 37.1% and a massive US$15 billion-plus pipeline from its sponsor, Digital Realty Trust (NYSE: DLR), the REIT is perfectly positioned to capitalize on the tightening vacancies across global markets driven by the rise of artificial intelligence.
AIMS APAC REIT (SGX: O5RU) – The Industrial Workhorse Keeps Galloping
AIMS APAC REIT continued to demonstrate why industrial assets are often the backbone of a resilient portfolio.
For the first nine months of the fiscal year ending 31 March 2026 (9MFY2026), the REIT reported a steady 1.4% rise in gross revenue and a more impressive 4.1% increase in NPI.
Unitholders were rewarded with a 2.5% YoY increase in DPU to S$0.0725.
The REIT’s portfolio occupancy reached 95.4%, which stands in stark contrast to the JTC national average of 88.7%, highlighting the superior quality and management of its 28 properties across Singapore and Australia.
The REIT manager’s active leasing strategy was on full display as it signed 74 new and renewal leases totaling 1.7 million square feet.
In Singapore, the logistics and warehouse segment led the charge with rental reversions of 10.5%.
Defensive stability is a key theme here, with over 80% of rental income derived from essential industries like food, staples, and telecommunications.
Furthermore, the REIT has successfully completed asset enhancements at Tai Seng and Clementi, securing long-term master leases.
Combined with the recent acquisition of the Framework Building and a healthy balance sheet showing no near-term refinancing needs, AIMS APAC REIT remains a solid choice for investors looking for dependable, growing income in a volatile world.
Keppel REIT (SGX: K71U) – Expanding the Footprint for Future Gains
Keppel REIT’s full-year 2025 (FY2025) results revealed a portfolio that is physically performing well but undergoing a transition in its capital structure.
Property income rose 4.9% to S$274.5 million, supported by its prime Grade A assets in Singapore, Australia, South Korea, and Japan.
The trust achieved a healthy positive rental reversion of 11.5%, with sectors like banking and technology continuing to show an appetite for premium office space.
However, DPU experienced a 6.6% decline to S$0.0523.
This drop was largely technical, resulting from an enlarged unit base following capital raising activities used to fund major acquisitions rather than a decline in property-level profitability.
The long-term story for Keppel REIT is one of strategic expansion.
In December 2025, the trust made two significant moves by acquiring a 75% interest in Top Ryde City Shopping Centre in Sydney and doubling its stake in the iconic Marina Bay Financial Centre Tower 3.
These acquisitions mark a pivot toward retail diversification and a deeper bet on Singapore’s premier business district.
While the unit base is currently larger, these assets are expected to contribute meaningfully to earnings in 2026.
With portfolio occupancy sitting high at 96.7% and a perfect 100% occupancy rate in North Asia, the manager’s focus on organic growth and optimizing borrowing costs should provide a tailwind for the coming years.
Get Smart: Quality Always Rises to the Top
The common thread across these three REITs is the ability to command higher rents in a competitive environment.
While headline distribution numbers can sometimes be skewed by capital management or unit issuances, the operational health of these trusts – evidenced by double-digit rental reversions and high occupancy – remains excellent.
Investors should look beyond the surface and appreciate the strategic moves being made today to secure the income of tomorrow.
As long as these REIT managers continue to leverage their sponsor pipelines and maintain healthy balance sheets, the long-term outlook for these dividend payers remains bright.
Imagine receiving steady rent increases for more than two decades. It sounds unusual, but one healthcare REIT already has rental escalations locked in until around 2042. Income visibility like this is hard to find today. We break down how this REIT built such dependable cash flow in our FREE dividend report and how it could strengthen a retirement portfolio. Get the free report here.
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Disclosure: The Smart Investor does not own any of the stocks mentioned.
