The first half of the year has been a mixed bag for Singapore real estate investment trusts (S-REITs) given investors’ focus on interest rates, refinancing costs and where property values are heading.
Now that we’re into the second half, the emphasis might be changing.
The question is no longer which REITs can weather higher rates, but which ones are positioned to grow distributions and keep income flowing through whatever the cycle brings.
In this article, we spotlight five Singapore REITs income investors should keep their eyes on.
Why 2H Could Be a Better Environment for REITs
Several REITs have already refinanced this year at lower rates, which eases concerns of a challenging financing environment.
Coupled with a potential recovery in distribution per unit (DPU) for well-managed REITs, we could see improving sentiment towards Singapore REITs.
But make no mistake – an easier rate backdrop lifts everyone a little; fundamentals separate the winners.
So, what makes a REIT worth watching?
A sustainable distribution yield rather than a flashy one, manageable leverage, high occupancy, and the demonstrated ability to raise rents.
Having a quality sponsor with a sensible acquisition pipeline helps as well.
With that lens established, let’s get into it.
Starhill Global REIT (SGX: P40U) – The Defensive Retail REIT
Starhill Global anchors itself on two Orchard Road trophies, Wisma Atria and Ngee Ann City, with the bulk of Ngee Ann City’s retail space on a long master lease that delivers reliable income through the market cycle.
For its full year ended 30 June 2026 (FY2025/2026), Starhill reported robust committed occupancy of 97.2% while DPU rose 0.8% year on year (YoY) to S$0.0368, helped by stronger contributions from Ngee Ann City and Lot 10.
This continues the REIT’s strong DPU history, stretching back to 2005.
Crucially, gearing remains moderate at 35.8%.
At the current unit price of S$0.53, Starhill Global offers a trailing distribution yield of roughly 6.9%.
CapitaLand Ascendas REIT (SGX: A17U), or CLAR – The Industrial Income Generator
Singapore’s largest industrial REIT offers stability through economic cycles with its diversified base of tenants across more than 20 industries.
Further underpinning its stability is its healthy balance sheet, with an aggregate leverage of 39.7% as of 30 June 2026 (1H2026).
Interest coverage is decent at 3.5x, with a well-spread debt maturity profile.
Portfolio occupancy stood at 89.1%, or 90.3% excluding two properties completed during the period, while a weighted average lease expiry (WALE) of 4.0 years provides income visibility.
For investors looking to add an industrial angle to their income portfolio, CLAR is a fine choice.
First REIT (SGX: AW9U) – The Healthcare REIT
If you’re looking to further solidify the defensiveness of your REIT portfolio, a healthcare REIT is a must!
With nursing homes and integrated hospitals across Indonesia, Japan and Singapore, First REIT generates stable recurring rental income.
Its income consistency is underpinned by long lease structures; WALE stands at 9.5 years as of 30 June 2026.
On the corporate front, unitholders have approved the divestment of eight Indonesian hospitals and three non-core Indonesian assets for approximately S$471.5 million – a 2.1% premium to valuation – though the sale has yet to complete.
A put option over the remaining six hospitals runs to 31 October 2026, extendable to 31 December 2026.
That said, DPU faces persistent currency headwinds from a weaker Indonesian rupiah and Japanese yen.
That pressure showed up in the numbers: 1H2026 DPU fell 13.3% YoY to S$0.0098, with the second quarter down 12.7% to S$0.0048.
Digital Core REIT (SGX: DCRU), or DCR – The Data Centre REIT
Now that the defence of your portfolio has been secured, it might be ideal to add some growth exposure to it.
Introducing DCR, which offers investors exposure to the secular growth trends of AI and cloud computing with its 11 data centres spread across North America, Europe, and Asia.
As of 30 June 2026, occupancy is robust at 97%, supported by a high-quality tenant base of hyperscalers and a social media giant.
Supported by a data-centre specialist sponsor in Digital Realty Trust (NYSE: DLR), the REIT has a right-of-first-refusal pipeline of around US$540 million of sponsor assets it could acquire over time.
Mapletree Pan Asia Commercial Trust (SGX: N2IU), or MPACT – The Diversified Commercial REIT
Finally, MPACT provides balanced exposure across multiple sectors including retail and office through its ownership of business parks and VivoCity.
Geographic diversification is also present with properties across Singapore, Hong Kong, China, Japan and South Korea.
That said, the Singapore assets — led by VivoCity — are the engine; the overseas ones have been the drag.
That split showed clearly in its 1QFY2026/2027 update (ended 30 June 2026).
VivoCity grew net property income by 8.9% YoY, and the portfolio’s rental reversions came in at a healthy 4.3%.
Weaker overseas performance still pulled group DPU down to S$0.0196, but lower borrowing costs softened the blow: MPACT cut its cost of debt to 2.94% and lifted interest cover to 3.3x.
Gearing edged up to 37.7%, still comfortably below the 50% regulatory limit.
Management isn’t standing still.
It has been selling weaker overseas properties, filling empty space at its Singapore business parks, and upgrading assets to lift rents rather than simply buying more.
What Income Investors Should Watch in 2H
Watch refinancing activity and borrowing costs, alongside occupancy trends and rental reversions.
New acquisitions and updated guidance regarding future earnings are crucial as well.
Above all, pay attention to where interest rate expectations settle – the rate path shapes both refinancing costs and the yields income investors can expect.
How These REITs Can Fit into a Portfolio
Notice how differently these five names behave: Starhill and First REIT provide defensiveness, CLAR and MPACT are diversified core holdings, and DCR provides a growth angle.
Owning across sectors means they don’t all falter at once.
Balance the higher yielders against the steadier names, and anchor your holdings on names that provide sustainable distributions.
Get Smart: Focus on Quality as the REIT Cycle Evolves
The second half of 2026 may well be kinder to REITs, if the financing environment remains healthy and income assets return to favour.
However, macroeconomic conditions can only lift the poor names so far.
Focus your watchlist on financially sound REITs with strong portfolios and disciplined management.
Do your homework now, and you’ll be ready when the price is right – rather than chasing whichever yield looks biggest today.
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Disclosure: Wilson H. does not own any of the shares or units of the companies mentioned.
