December is typically a season of festivities, as well as a time for winding-down and year-end reflections.
For income investors, it’s also a good time to review your portfolios, find out what worked and what didn’t, and to prepare for the year ahead.
Just as the festive season reminds us that value can be found in little things, beyond the familiar blue-chip names on the Straits Times Index (SGX: ^STI) lie opportunities sitting quietly under the tree.
Here are three small caps – companies with market caps under S$1 billion – that may offer the steady income and quiet strength worth a closer look before the new year begins.
Elite UK REIT Advances Multi-Pronged Portfolio Transformation
Elite UK REIT (SGX: MXNU) stands out for its defensive income profile, with 99.1% of rental income backed by UK government tenants, making it one of the most secure income plays on the SGX.
The REIT owns 148 properties valued at £419.7 million as at 30 September 2025.
During the first half of 2025, the manager completed three strategic acquisitions for £9.2 million.
These added the Department for Environment, Food & Rural Affairs as a new tenant and boosted gross rental income from non-DWP government occupiers by 1.5 times.
These properties delivered a gross rental income yield of 9.2%, above the existing portfolio’s 9.0%, while extending the weighted average lease expiry (WALE) to 7.2 years compared to 2.9 years for the existing portfolio.
The repositioning pipeline is where things get interesting.
The manager secured planning approval to convert Lindsay House in Dundee into 168-bed purpose-built student accommodation, targeting a potential fivefold valuation uplift by 2027.
Pre-planning consultation also concluded positively for Cambria House in Cardiff (348 beds), while planning applications have been submitted for a hyperscale data centre in Blackpool with 120 MVA power supply secured.
The REIT is also working to complete partial DWP lease regears for 2028 maturities by the first quarter of 2026, addressing £352.1 million of the portfolio.
Civmec Order Book Rebounds
Civmec Limited (SGX: P9D) provides integrated construction and engineering services across the energy, resources, infrastructure, and marine & defence sectors.
Headquartered in Henderson, Western Australia, the group’s capabilities span heavy engineering, shipbuilding, modularisation, and mechanical works.
Civmec’s order book exceeded A$1.15 billion as at 30 September 2025, up sharply from A$633 million as at 31 December 2024.
This replenishment was driven by a stream of operationally critical awards during the first quarter of fiscal year 2026 (1QFY2026), including the CSBP Sodium Cyanide capacity expansion project, a major port outflow debottlenecking initiative, and the Fortescue process water tank installation at Kings Valley Solomon mine site.
The defence sector offers a promising growth angle.
Civmec completed its A$20 million acquisition of Luerssen Australia on 1 July 2025, rebranding it Civmec Defence Industries.
The group delivered NUSHIP Eyre, the second Arafura Class offshore patrol vessel, in September 2025, with four additional vessels under construction.
The Australian government’s A$12 billion commitment to developing a Defence Precinct at Henderson positions Civmec strongly for future naval programmes, including the Mogami-class general purpose frigates.
Management noted strong tendering activity across all sectors, with extensive early contractor involvement on major projects.
Boustead Singapore Pursues Value Unlocking Through UI Boustead REIT Listing
Boustead Singapore (SGX: F9D) is working to unlock value from its real estate portfolio through the proposed listing of UI Boustead REIT on the Singapore Exchange.
Following strategic reviews announced in June and September 2025, Boustead’s subsidiary Boustead Projects Limited (BPL) signed agreements on 18 September 2025 to divest four Singapore logistics and industrial properties to the proposed REIT.
The divestments involve BPL’s stakes in four joint ventures holding these properties.
A critical condition for completion is that UI Boustead REIT will only acquire 100% interest in the properties, requiring all other joint venture investors to similarly divest their stakes.
Management highlighted that the proposed transactions would allow the group to monetise and reflect the market value of its real estate portfolio while enabling capital recycling.
Proceeds could be redeployed into new design-and-build opportunities, where Boustead’s engineering order backlog stands at approximately S$396 million as at 30 September 2025.
The timing of the REIT listing remains subject to regulatory approvals and completion of joint venture partner negotiations.
Get Smart: Small Caps, Steady Income
Blue chips often dominate the conversation when it comes to dividend investing, and for good reason – they offer liquidity, analyst coverage, and a certain peace of mind.
But as these three names suggest, reliable income can come from beyond the STI’s familiar constituents.
Smaller companies may fly under the radar, yet some offer defensive income profiles, growing order books, or catalysts that could unlock value in the months ahead.
The trade-off?
Thinner trading volumes, less visibility, and greater sensitivity to sector-specific headwinds.
For investors willing to do the homework, though, the rewards can be worth the effort.
While your friends debate which tech stock to buy next, money is quietly flowing into these 5 Singapore companies you see every day. They are proven to have steady dividends and strong balance sheets. Our FREE report shows you exactly which ones and why they’re safer than flashy darlings everyone’s chasing. Download your free report now.
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Disclosure: Calvina Lee does not own any of the stocks mentioned. Chin Hui Leong contributed to the article and does not own any of the stocks mentioned.
