Three of Singapore’s most established REITs are approaching the Year of the Horse with higher distributions.
But for the dividend investor, the real question isn’t just about the immediate angbao – it’s whether the internal engines driving these payout increases are built to deliver prosperity throughout the year and beyond.
ParkwayLife REIT: The Built-In Escalator
ParkwayLife REIT (SGX: C2PU), or PLife REIT, owns a defensive portfolio of 74 healthcare properties across Singapore, Japan, and France, valued at S$2.57 billion.
For FY2025, the REIT delivered gross revenue of S$156.3 million, up 7.6% year on year (YoY), while net property income (NPI) grew 8.0% to S$147.5 million.
Distribution per unit (DPU) rose 2.5% to S$0.1529, extending a remarkable streak of uninterrupted growth since its 2007 IPO.
Sharp-eyed investors may notice that distributable income actually surged 9.1% YoY, but the enlarged unit base from November 2024’s equity fund raising tempered the per-unit increase.
However, the future looks bright: PLife REIT’s Singapore hospitals’ minimum guaranteed rent is set to jump 24.3% in FY2026 under its renewed master lease.
This contractual step-up provides a rare degree of forward income visibility.
At a unit price of S$4.04, PLife REIT offers a trailing dividend yield of approximately 3.8%.
Keppel DC REIT: Riding the AI Wave
Keppel DC REIT (SGX: AJBU) owns 25 data centres across 10 countries with assets under management of approximately S$6.3 billion.
The FY2025 numbers are eye-catching.
Gross revenue surged 42.2% YoY to S$441.4 million, while NPI jumped 47.2% to S$383.3 million.
DPU came in at S$0.10381, a 9.8% increase from the prior year.
This growth was largely fuelled by S$1.1 billion in acquisitions, including Tokyo Data Centre 3.
But it wasn’t just an acquisition story – the REIT achieved a massive positive rental reversion of approximately 45% for FY2025, reflecting the immense pricing power in a supply-constrained market.
With AI serving as a structural demand driver, management remains bullish on the sector’s long-term prospects.
At a unit price of S$2.26, Keppel DC REIT offers a trailing dividend yield of approximately 4.6%.
CapitaLand Integrated Commercial Trust: The Compounding Machine
Singapore’s largest REIT by market capitalisation, CapitaLand Integrated Commercial Trust (SGX: C38U), or CICT, boasts assets under management of S$27.4 billion.
CICT posted gross revenue of S$1.6 billion (up 2.1%) and NPI of S$1.2 billion (up 3.1%).
DPU rose 6.4% to S$0.1158, marking its fifth consecutive year of growth.
The REIT is currently firing on all cylinders, starting with the strategic acquisition of the remaining 55% interest in CapitaSpring which brought the Grade A tower to full ownership.
Management also successfully lowered the average cost of debt from 3.6% to 3.2%, while maintaining high portfolio quality with retail and office occupancy at 98.7% and 95.7% respectively.
Looking ahead, a pipeline of asset enhancements and the S$1.1 billion Hougang Central development provide significant long-term growth catalysts.
At a unit price of S$2.48, CICT offers a trailing dividend yield of approximately 4.7%.
Get Smart: Follow the Growth Engine, Not Just the Yield
All three REITs delivered higher DPUs, but the “how” matters more than the “how much.”
PLife REIT offers visibility through contractual escalations, Keppel DC REIT captures structural tech tailwinds, and CICT utilizes its massive scale to pull multiple growth levers at once.
For dividend investors, a rising DPU is a great gift, but a repeatable increase is the key to lasting wealth.
Before investing, ask yourself: does this REIT have the strength to do it again next year?
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 owns shares of PLife, Keppel DC REIT and CICT.
