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Posted July 1, 2025 at 10:30 am
| Trust Name | YTD Total Returns (%) | YTD Net Insti Flows (S$M) | YTD Net Retail Flows (S$M) | Dividend Yield (%) | P/B Ratio |
| Frasers Hospitality Trust | 21.4 | 19.3 | -23.2 | 3.1 | 1.1 |
| CapitaLand Integrated Commercial Trust | 13.8 | 38.1 | -75.9 | 5.0 | 1.0 |
| First REIT | 10.7 | 0.1 | -0.9 | 8.7 | 1.0 |
| Frasers Centrepoint Trust | 10.4 | -12.8 | -14.3 | 5.3 | 1.0 |
| ParkwayLife REIT | 10.0 | 11.9 | -14.5 | 3.7 | 1.7 |
| CapitaLand Ascendas REIT | 9.3 | -31.2 | 28.0 | 5.7 | 1.2 |
| AIMS APAC REIT | 8.9 | -2.8 | 2.7 | 7.3 | 1.1 |
| OUE REIT | 7.8 | -1.4 | 1.5 | 7.0 | 0.5 |
| Mapletree Pan Asia Commercial Trust | 6.7 | -30.8 | 17.2 | 6.4 | 0.7 |
| Keppel DC REIT | 5.9 | -20.9 | -3.9 | 4.3 | 1.5 |
Source: Bloomberg, SGX, data as of 26 Jun 2025.
The S-REIT sector has delivered a stable performance in the first half of 2025, with the iEdge S-REIT index gaining 0.6 per cent to 1010.73 as of Jun 26, while dividends take the index total returns to 3.2 per cent for the period.
More than half of the 30 constituents on the iEdge S-REIT index delivered positive total returns in the first six months of the year, with the top five performers delivering double digit total returns over the period.
These outperformers include Frasers Hospitality Trust (FHT), CapitaLand Integrated Commercial Trust (CICT), First REIT, Frasers Centrepoint Trust (FCT) and Parkway Life REIT, with YTD total returns ranging between 10.0 and 21.4 per cent as of Jun 26.
Most of the outperformers in the first half reported robust operating performance with stable occupancy and positive rental reversions.
FCT saw revenue and net property income (NPI) grow by 7.1 per cent and 7.3 per cent on year to S$184.4 million and S$133.7 million respectively in H1 2025. This growth was primarily driven by increased occupancy and passing rent across its portfolio of malls, and the completion of AEIs at Tampines 1. Distribution per unit (DPU) also grew 0.5 per cent to S$0.06054.
Similarly, ParkwayLife REIT has reported higher gross revenue in 1Q 2025, arising from the contribution of nursing homes acquired in Japan and France. DPU also rose 1.3 per cent to S$0.0384.
On a like-for-like basis, CICT also saw growth in Q1 gross revenue and NPI by 1.1 per cent and 1.4 per cent respectively, and it continued to observe higher signing rents for new and renewed leases.
Meanwhile, FHT’s outperformance has come on the back of a proposed privatisation.
The REIT sector trades at compelling valuations compared to their historical average.
As of end-May, the forward dividend yield for the FTSE ST REIT Index was around 6.4 per cent, representing a yield spread of nearly 4 percentage points to benchmark 10-year Singapore Government Bond yields, higher than the 10-year average.
In terms of price-to-book ratio, the sector also trades under 0.8x, below the 10-year average of 1.0x. The strongest performing S-REITs on the iEdge S-REIT index in the first half of 2025 are also among those that have the highest price-to-book ratios currently.
The top seven performers in H1 have price-to-book ratios of between 1.0x to 1.7x, higher than the sector average.
For the first half of 2025, retail investors were net buyers of S-REITs, with the sector receiving total net inflow of around S$400 million as of June 26.
Institutional investors were net sellers of S-REITs over the period, with over S$500 million in net outflows. However, several S-REITs bucked the trend and recorded net institutional inflows in H1, including CICT, FHT and ParkwayLife REIT. Institutions have also been net buying the REIT sector in recent weeks with over S$100 million in net inflows for the five sessions to Jun 26.
As the second half approaches, investors will be watching for the path of interest rates as well as continued operational resilience.
While the US Federal Reserve has not cut interest rates so far in 2025, expectations are for several rate cuts to come later in the year.
In Singapore, domestic interest rates have also been falling, with the three-month compounded Singapore Overnight Rate Average (SORA) slipping from 3.0227 on Jan 2 to 2.0797 on Jun 26.
Analysts watching the sector have noted that the decline in local borrowing rates has not triggered significant unit price movements for the sector thus far. However, investor sentiment may improve if global interest rates abroad are eventually cut.
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Originally Posted on June 30, 2025 – REIT Watch – Best performing S-REITs post double digit total returns in H1
For more research and information on Singapore’s REIT sector, visit sgx.com/research-education/sectors for the SREITs & Property Trusts Chartbook.
REIT Watch is a regular column on The Business Times, read the original version.
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