Beginner investors may find the stock market daunting due to its constant volatility and macroeconomic concerns.
During such uncertain times, it’s useful to stick with solid, blue-chip names that provide assurance and reliability.
The same rule applies to the REIT sector, which has experienced weak sentiment due to elevated interest rates and inflationary pressures.
Income-seeking investors should select REITs with strong sponsors, high-quality portfolios, and a solid track record of delivering consistent distributions.
Here are three Singapore REITs that fit the bill.
Frasers Centrepoint Trust (SGX: J69U)
Frasers Centrepoint Trust, or FCT, is a retail REIT with a portfolio of nine suburban malls and an office building, all located in Singapore.
The REIT’s total assets under management stood at S$7.1 billion.
FCT’s suburban malls are located in heartland areas that see healthy footfall and tenant sales, even during crises.
The REIT is also supported by a strong sponsor in property developer Frasers Property Limited (SGX: TQ5), a mainboard-listed group with total assets of approximately S$39.6 billion as of 30 September 2024.
The retail REIT reported a resilient set of earnings for the first half of fiscal 2025 (1H FY2025) ending 31 March 2025.
Gross revenue rose 7.1% year on year to S$184.4 million, supported by higher rental income from new and renewed leases signed.
Net property income (NPI) increased by 7.3% year on year to S$133.7 million.
FCT’s distribution per unit (DPU) inched up 0.5% year on year to S$0.06054.
The REIT sported a very high retail portfolio occupancy level of 99.5%.
Its leases also enjoyed a positive rental reversion of 9% for 1H FY2025, which showcases healthy demand for its properties.
Both shopper traffic and tenant sales also registered healthy numbers, rising by 1% and 3.3% year on year, respectively.
The REIT manager also undertook several initiatives to improve the portfolio’s DPU and asset base.
FCT proposed to acquire a 100% stake in Northpoint City South Wing for S$1.1 billion, which will be DPU-accretive.
Elsewhere, the manager has commenced the asset enhancement initiative (AEI) for Hougang Mall to introduce new-to-mall concepts.
The phased AEI should be completed by the third quarter of 2026 (3Q 2026), and the REIT is targeting a 7% return on investment.
CapitaLand Integrated Commercial Trust (SGX: C38U)
CapitaLand Integrated Commercial Trust, or CICT, is a retail and commercial REIT that owns 21 properties in Singapore, two in Germany, and three in Australia.
The REIT’s total AUM stood at S$26 billion as of 31 December 2024.
CICT has a strong sponsor in CapitaLand Investment Limited (SGX: 9CI) and also reported a robust set of results for 2024.
Gross revenue inched up 1.7% year on year to S$1.59 billion while NPI improved by 3.4% year on year to S$1.15 billion.
The REIT’s DPU edged up 1.2% year on year to S$0.1088.
CICT continued to deliver a commendable performance for its recent 1Q 2025 business update.
The headline gross revenue and NPI fell because of the absence of income contribution from 21 Collyer Quay.
But on a like-for-like basis, gross revenue and NPI would have increased by 1.1% and 1.4%, respectively.
The REIT’s portfolio occupancy stood high at 96.4%, and both its retail and office divisions posted positive rental reversions of 10.4% and 5.4%, respectively.
On the retail front, CICT also saw a 17.5% year-on-year increase in tenant sales for 1Q 2025, while shopper footfall improved by 23% year on year.
The manager expects the IMM Building’s AEI to be completed by 3Q 2025, while Gallileo’s AEI (in Germany) should be completed by the end of this year.
Planning for Tampines Mall’s AEI will be carried out in 4Q 2025, and is the next AEI that the REIT manager is planning to improve the quality of CICT’s portfolio.
Keppel DC REIT (SGX: AJBU)
Keppel DC REIT is a data centre REIT with a portfolio of 24 data centres across 10 countries.
The portfolio was valued at around S$4.9 billion as of 31 March 2025.
The REIT has a strong sponsor in Keppel Ltd (SGX: BN4), a blue-chip asset manager.
Keppel DC REIT followed up its strong 2024 results with another robust showing for 1Q 2025.
Gross revenue jumped 22.6% year on year to S$102.2 million while NPI climbed 24.1% year on year to S$88.1 million.
The REIT’s DPU increased 14.2% year on year to S$0.02503.
Portfolio occupancy stood at 96.5%, and the REIT enjoys a long weighted average lease expiry of 7.1 years.
The REIT manager just concluded the acquisition of two Singapore data centres last year, and Keppel DC REIT also enjoyed higher rental contributions from contract renewals and escalations.
For 1Q 2025, the REIT logged a positive rental reversion of 7%.
The manager is conducting an asset repositioning review to build a strong portfolio, and the data centre sector fundamentals are strong enough to support continued growth in rentals.
Artificial intelligence and a surge in digitalisation and cloud computing should generate strong, consistent demand for data centres, which bodes well for the REIT in the long term.
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Disclosure: Royston Yang owns shares of Keppel DC REIT.
