As interest rates shift, a 5% distribution yield stands out.
However, high yields may also signal underlying risks.
Investors must keep an eye out for real estate investment trusts (REITs) that deliver a balance of attractive returns and yield sustainability.
Here are three reliable Singapore REITs yielding 5% or more.
Frasers Centrepoint Trust (SGX: J69U)
Frasers Centrepoint Trust, or FCT, is a REIT focused on suburban retail malls in Singapore.
For its financial year 2025 ending 30 September 2025 (FY2025), FCT reported a revenue growth of 10.8% year on year (YoY) to S$389.6 million.
The trust also had a 9.7% increase YoY in net property income (NPI) to S$278 million.
The rise can be credited to the acquisition of Northpoint City South Wing, which boosted revenue and a positive rental reversion of 7.8%.
On top of this, 54% of FCT’s tenant mix consists of essential services such as supermarkets and clinics.
This mix means that rental income is largely tied to non-discretionary spending, enabling tenants to be resilient in economic downturns.
In addition, the REIT had a 98.1% committed occupancy at the end of FY2025, reflecting a low vacancy risk.
Furthermore, the trust has a healthy interest coverage ratio of 3.46, which indicates a strong ability to cover its debt obligations.
FCT has a trailing annual distribution per unit (DPU) of S$0.1211 per unit.
At a unit price of S$2.22, the trust has a dividend yield of 5.5%.
CapitaLand Ascendas REIT (SGX: A17U)
CapitaLand Ascendas REIT (CLAR) is Singapore’s largest listed business and industrial REIT, owning assets spanning data centres, commercial properties and logistics facilities.
For its financial year 2025 ending 31 December 2025 (FY2025), CLAR had a 1% YoY boost in gross revenue to S$1.54 billion.
Moreover, the trust saw a rise in NPI of 1.7% to S$1.1 billion.
The strong financial performance was driven by acquisitions in the US and Singapore, and partially offset by the impact of strategic divestments.
Additionally, the FY2025 rental reversion was 12%, which means renewed leases were signed at higher rent prices, signaling future revenue growth.
Aside from rental reversion, CLAR is planning to increase revenue through its asset enhancement initiatives (AEIs).
The trust’s AEI with Aperia Mall in Singapore, which was completed on 29 October 2025, included new food and beverage retail units and upgraded entrances, and was projected to have a return on investment of about 9%.
Although the DPU fell by 1.3% YoY, this was due to an enlarged unit base following a S$500 million equity fundraising in June 2025 and the issuance of units for management fees and transaction costs.
CLAR has a trailing annual DPU of S$0.1501 per unit.
At a unit price of S$2.53, the trust has a dividend yield of 5.9%.
Frasers Logistics and Commercial Trust (SGX: BUOU)
Frasers Logistics and Commercial Trust, or FLCT, owns 113 logistics, industrial, and commercial properties worth S$6.9 billion across Australia, Germany, Singapore, the United Kingdom, and the Netherlands.
For its financial year 2025 ending 30 September 2025 (FY2025), revenue grew by 5.6% YoY to S$471.5 million.
FLCT also had an uplift in NPI of 1.9% to S$326.1 million.
The growth was mainly supported by the contributions of newly acquired logistics assets in Germany and Singapore.
Moreover, UK business parks experienced overall improved income.
The trust also boasts a robust balance sheet.
This competitive advantage is supported by a weighted average debt maturity of 2.8 years with debt obligations spread across FY2026 to beyond FY2031, reducing refinancing risk.
Regarding debt servicing ability, FLCT is in a healthy position with a 4.3 times interest coverage ratio, meaning it generates 4.3 times the earnings needed to cover interest payments.
In addition, 70% of the trust’s debt is fixed-rate, providing insulation from interest rate volatility.
On the future outlook, management has highlighted several tailwinds supporting logistics assets such as the rise in e-commerce adoption and warehouse demand from near-shoring.
The trust has already started to optimise its portfolio to capture these tailwinds by divesting assets such as the 357 Collins Street office building in Melbourne to focus on logistics and industrial assets.
FLCT has a trailing annual DPU of S$0.0595 per unit.
At a unit price of S$0.90, the trust has a dividend yield of 6.6%.
Get Smart: Yield is only as strong as the cash flow behind it
REITs provide a steady income and portfolio diversification backed by real assets.
They can act as reliable yield anchors during volatile markets.
While high yields may be attractive, sustainable cash flow drives long-term income.Hence, investors should prioritise quality and durability over chasing high yields when building their portfolios.
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Disclosure: Gabriel L. does not own shares in any of the companies mentioned.
