REIT Watch – Retail S-REITs see lower cost of debt and positive rental reversions as retail sales improve

7 S-REITs with Singapore Retail Assets

Source: Bloomberg, SGX (Data as of 27 Aug 2025).

Seven Singapore-listed real estate investment trusts (S-REITs) with local retail assets have posted mixed results in revenue and net property income. Retail S-REITs’ debt costs fell with lower interest rates, while rising consumer traffic drove positive rental reversions.

The seven are: CapitaLand Integrated Commercial Trust (CICT), Frasers Centrepoint Trust (FCT), Lendlease Global Commercial REIT (LREIT), Mapletree Pan Asia Commercial Trust (MPACT), OUE REIT, Starhill Global REIT and Suntec REIT. Here’s a look at their recent business updates and financials.

CapitaLand Integrated Commercial Trust (CICT) reported a 0.5 per cent dip in Gross Revenue and 0.4 per cent dip in Net Property Income (NPI) for 1H 2025, mainly due to the sale of 21 Collyer Quay. Excluding that property, both would have risen by 1.4 per cent and 1.7 per cent. Distribution per unit (DPU) rose 3.5 per cent to 5.62 cents. Capital management improved with leverage and debt costs reduced to 37.9 per cent and 3.4 per cent. Portfolio occupancy remained steady at 96.3 per cent, down just 0.1 per cent quarter-on-quarter, while rental reversions grew by 4.8 per cent for office and 7.7 per cent for retail as tenant sales grew 17.9 per cent year-on-year.

CICT also raised S$600 million through a private placement to acquire the remaining 55 per cent stake in CapitaSpring, with the deal 4.9 times oversubscribed at S$2.11 per unit, and expected to be DPU accretive, reinforcing its focus on core domestic assets.

Frasers Centrepoint Trust (FCT) recorded a committed occupancy rate of 99.9 per cent in 3Q 2025, representing an increase of 0.4 per cent compared to the previous quarter. Shopper traffic rose by 2.1 per cent, and tenants’ sales increased by 4.4 per cent year-on-year. Capital management showed mixed results – aggregate leverage went up by 0.8 per cent to 40.4 per cent with perpetual securities, while cost of debt fell by 0.1 per cent to 3.7 per cent. The REIT’s Hougang mall began asset enhancement initiative (AEI) works in April 2025, reaching approximately 74 per cent leasing pre-commitment with new concepts introduced to the mall.

Lendlease Global Commercial REIT (LREIT) posted a 1.9 per cent rise in Gross Revenue and 2.7 per cent in NPI for 2H FY2025. DPU grew 1.8 per cent to 1.80 cents for 2H FY2025. The REIT expects a more favourable interest rate outlook to contribute positively towards distribution performance. Cost of debt improved to 3.46 per cent per annum with interest coverage ratio improved to 1.6 times. Post its financial year end, LREIT entered into an agreement to divest Jem office for S$462 million, which will strengthen the REIT’s capital structure.

Mapletree Pan Asia Commercial Trust (MPACT) saw Gross Revenue and NPI dips in 1Q FY2025/26, largely due to the strategic divestment of Mapletree Anson and lower overseas contributions. DPU fell 3.8 per cent to 2.01 Singapore cents. Occupancy dipped slightly to 89.3 per cent, but rental reversion was positive at 1.4 per cent with VivoCity leading with a 14.7 per cent uplift. In July 2025, MPACT announced the proposed divestment of two non-core Japanese properties for JPY8,730.0 million (S$78.7 million). This transaction aligns with the Manager’s ongoing strategy to enhance portfolio quality and focus on core assets.

OUE REIT’s Mandarin Gallery recorded a committed occupancy rate of 99.0 per cent and rental reversion of 34.3 per cent in 2Q 2025. The average passing rents for the property increased by 2.7 per cent to S$22.22 psf per month, compared to Orchard Road retail rents growth of 0.5 per cent. OUE REIT collaborated with several partners to introduce new experiences at the shopping mall, including a partnership with POP MART to feature LABUBU at Mandarin Gallery.

Starhill Global REIT saw a 0.7 per cent year-on-year rise in Gross Revenue and maintained steady NPI in 2H FY24/25. DPU held at 1.85 cents. Retail portfolio committed occupancy was 97.3 per cent, with Singapore properties fully leased. In FY24/25, Wisma Atria Property’s shopper traffic rose 5 per cent year-on-year, though tenant sales fell 5.2 per cent. Aggregate leverage remained at 36.0 per cent and average debt maturity was 3.1 years.

Suntec REIT saw Gross Revenue and NPI rise by 3.3 per cent and 5.6 per cent in 1H 2025, driven by a one-off compensation in Sydney, Australia and stronger Singapore performance. DPU grew 3.7 per cent to 3.155 cents. Suntec City Mall recorded rental reversion of 18.0 per cent for 1H 2025 despite a slight drop in shopper traffic and tenant sales. The REIT expects retail sales to stay subdued amid cautious consumer spending, but Suntec City Mall should maintain over 95 per cent occupancy due to strong tourism and MICE activity. While positive rent reversions are likely, they may ease in FY25 given economic uncertainties. 

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Originally Posted on September 1, 2025 – REIT Watch – Retail S-REITs see lower cost of debt and positive rental reversions as retail sales improve