Singaporeans know how it feels when the transboundary haze settles over the island.
October brought a different kind of haze for investors, as Singapore’s blue chips came under pressure.
But four real estate investment trusts (REITs) managed to rise above the gloom, delivering positive returns despite the downturn.
The SPDR STI ETF (SGX: ES3), an ETF that mimics Singapore’s Straits Times Index (SGX: ^STI), delivered a negative 5.5% return for October 2026.
Over the same period, Frasers Centrepoint Trust (SGX: J69U), or FCT, delivered a 3.5% total return.
CapitaLand Integrated Commercial Trust (SGX: C38U), or CICT, Frasers Logistics & Commercial Trust (SGX: BUOU), or FLCT, and Mapletree Logistics Trust (SGX: M44U), or MLT, returned 2.2%, 1.7% and 0.9%, respectively.
| Stock | Ticker | October 2026 Total Return |
|---|---|---|
| SPDR STI ETF | SGX: ES3 | -5.5% |
| Frasers Centrepoint Trust (FCT) | SGX: J69U | +3.5% |
| CapitaLand Integrated Commercial Trust (CICT) | SGX: C38U | +2.2% |
| Frasers Logistics & Commercial Trust (FLCT) | SGX: BUOU | +1.7% |
| Mapletree Logistics Trust (MLT) | SGX: M44U | +0.9% |
Source: Fiscal.ai.
These are total returns, which include distributions and not just unit price movements.
The gains may appear modest, but they still stand in stark contrast to the STI’s dip.
So what helped them weather the downturn?
Their latest business updates offer some clues.
What drove FCT’s record payout?
FCT owns a portfolio of eight suburban malls in Singapore.
For the fiscal year ended 30 September 2026 (FY2026), net property income (NPI) rose 15.7% year on year (YoY) to S$321.7 million.
A full year’s contribution from Northpoint City’s South Wing provided the biggest boost.
Distribution per unit (DPU) climbed 2.0% to a record S$0.12350, while second-half DPU grew 2.6% YoY to S$0.06214.
Retail committed occupancy stood at 99.7%, excluding NEX, which is currently undergoing an asset enhancement initiative (AEI).
Rental reversions came in at 6.6%, while the average cost of debt fell to 3.2% from 3.8% a year ago.
However, the results were not entirely rosy.
Distributions from joint ventures fell 11.7% YoY, as a one-off special distribution from the previous year did not recur.
Tenant sales growth was also modest at just 1.3%.
Where is Singapore’s largest REIT finding growth?
CICT had a strong third quarter of 2026 (3Q2026), with NPI rising 13.8% YoY to S$334.9 million.
As CICT pays distributions half-yearly, there was no DPU this quarter.
New assets drove the growth.
CICT acquired Paragon on 1 July 2026, while Gallileo in Frankfurt and its increased stake in CapitaSpring also contributed to the stronger performance.
Integrated development NPI climbed 40.8% YoY.
There were also some encouraging signs across the portfolio.
Committed occupancy improved from 95.6% to 96.1% over the quarter, while nine-month rental reversions came in at 4.6% for retail and 7.1% for office properties.
The average cost of debt also eased to 2.8%.
However, not everything was moving in the right direction.
Retail NPI fell 8.2% YoY, while aggregate leverage climbed to 39.7%.
Can logistics make up for FLCT’s business park problem?
FLCT has 114 properties spread across five countries.
It reports financial results only twice a year, so its latest business update for the third quarter of the fiscal year ending 30 September 2026 (3QFY2026) did not include NPI or DPU figures.
Overall portfolio occupancy was 96.1%, while its logistics and industrial (L&I) business was a bright spot, with occupancy at 99.7%.
Rental reversions for these properties also came in at a healthy 11.9%.
The trust also expanded its logistics portfolio, acquiring four freehold properties in Germany and the Netherlands for around S$441.5 million.
Management expects the deal to lift DPU by 1.7%.
But the picture was less encouraging for its commercial properties.
Commercial rental reversions were -0.3%, while nine leases at Alexandra Technopark were renewed at rents 3.6% below their previous rates.
For now, FLCT’s L&I properties appear to be doing the heavy lifting.
Is China still weighing on MLT?
MLT owns 172 logistics properties, but its latest results point to relatively modest growth.
For the second quarter of the fiscal year ending 31 March 2027 (2QFY2027), NPI rose 1.0% YoY to S$154.8 million, while DPU edged up 0.1% to S$0.01816.
There was some improvement in rental reversions, which picked up to 2.1% from 0.9% in the previous quarter.
However, China remained a weak spot, with rental reversions still at -1.7%, compared with 4.2% excluding China.
MLT also divested around S$243 million worth of assets during the current fiscal year, at an average 3.1% premium to valuation.
Distributions to perpetual securities holders rose 33.6% YoY.
Aggregate leverage fell to 37.5% from 40.5%, although this was partly due to MLT temporarily using proceeds from perpetual securities to repay debt.
What did these four REITs have in common?
Occupancy across all four portfolios stayed above 96%, while rental reversions were positive in most parts of their portfolios.
Asset sales tested valuations.
FLCT sold its long-vacant Juniper building 37.5% above book value, and MLT’s divestments fetched a premium.
To put it simply, these REITs kept most of their buildings full and most of their rents rising.
In a volatile month, that may have given investors some reassurance.
Get Smart: Ask how the next deal gets paid for
One month of outperformance tells you little about the next twelve.
Gearing, however, offers clearer information.
FCT’s White Sands proceeds will cut aggregate leverage from 38.7% to 36.8%.
The other three REITs are closer to the 40% mark.
CICT’s aggregate leverage stands at 39.7%, while MLT’s pro forma gearing, which assumes the November 2026 redemption of its older perpetual securities, would be 40.4%.
FLCT’s leverage will reach about 38.7% once its acquisition settles.
That leaves S$547 million of headroom, down from S$727 million a quarter ago.
But why does this matter?
A REIT with limited borrowing headroom may need to issue new units to fund its next acquisition.
New units can dilute DPU.
Before you buy any of them, check the gearing and ask how management plans to pay for the next deal.
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Disclosure: The Smart Investor owns units in CICT, FCT, FLCT and MLT.
