{"id":226145,"date":"2025-06-23T10:45:00","date_gmt":"2025-06-23T14:45:00","guid":{"rendered":"https:\/\/ibkrcampus.com\/campus\/?p=226145"},"modified":"2025-06-24T16:33:12","modified_gmt":"2025-06-24T20:33:12","slug":"reit-watch-most-s-reits-singapore-retail-assets-record","status":"publish","type":"post","link":"https:\/\/www.interactivebrokers.com\/campus\/traders-insight\/securities\/etfs\/reit-watch-most-s-reits-singapore-retail-assets-record\/","title":{"rendered":"REIT Watch – Most S-REITs with Singapore retail assets record double digit positive rent reversions despite softer retail outlook"},"content":{"rendered":"\n

S-REITs with Singapore-based retail assets<\/strong><\/h2>\n\n\n\n
Trust Name<\/strong><\/td>Stock Code<\/strong><\/td>Market Cap S$M<\/strong><\/td>Dividend Yield<\/strong><\/td>PB Ratio<\/strong><\/td>YTD Total Returns<\/strong><\/td><\/tr>
CapitaLand Integrated Commercial Trust<\/td>C38U<\/td>15,878<\/td>5.2<\/td>1.02<\/td>14.3<\/td><\/tr>
Mapletree Pan Asia Commercial Trust<\/td>N2IU<\/td>6,483<\/td>6.8<\/td>0.69<\/td>5.0<\/td><\/tr>
Frasers Centrepoint Trust<\/td>J69U<\/td>4,502<\/td>5.5<\/td>0.97<\/td>8.5<\/td><\/tr>
Suntec REIT<\/td>T82U<\/td>3,261<\/td>5.5<\/td>0.54<\/td>-2.5<\/td><\/tr>
OUE REIT<\/td>TS0U<\/td>1,597<\/td>7.5<\/td>0.50<\/td>5.9<\/td><\/tr>
Lendlease Global Commercial REIT<\/td>JYEU<\/td>1,223<\/td>7.5<\/td>0.55<\/td>-5.9<\/td><\/tr>
Starhill Global REIT<\/td>P40U<\/td>1,160<\/td>7.2<\/td>0.67<\/td>4.7<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Source: SGX, Bloomberg (Data as of 19 Jun 2025). Distribution yields are extracted from <\/em>SREITs & Property Trusts Chartbook \u2013 2Q 2025<\/em><\/a>.<\/em><\/p>\n\n\n\n

Seven Singapore-listed real estate investment trusts (S-REITs) with local retail assets have recorded improvements in revenue and net property income, supported by improved operating metrics, positive rental reversions, and robust occupancy rates.<\/p>\n\n\n\n

The seven<\/a> 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\u2019s a look at their recent business updates and financials.<\/p>\n\n\n\n

CICT<\/strong> reported a slight 0.8 per cent year-on-year decline in both gross revenue and net property income (NPI) for 1Q25, due to the absence of income from 21 Collyer Quay which was divested in November 2024. Excluding 21 Collyer Quay, gross revenue and NPI were up by 1.1 per cent and 1.4 per cent respectively. CICT\u2019s retail portfolio recorded a 17.5 per cent year-on-year growth in tenant sales, while shopper traffic grew by 23.0 per cent. Rent reversion for CICT\u2019s retail portfolio was 10.4 per cent, with higher rates in Downtown malls compared to Suburban malls. CICT expects positive rent reversions signed in FY23 and FY24 leases to contribute to FY25 revenue, along with the full-year distribution income contribution from ION Orchard, acquired in September 2024.<\/p>\n\n\n\n

FCT<\/strong> reported increased gross revenue and NPI of 7.1 per cent and 7.3 per cent, respectively, for the first half of 2025, driven by higher rental income from renewed and new leases. FCT\u2019s portfolio maintained a committed occupancy of 99.5 per cent and shopper traffic and tenant sales were up by 1.0 per cent and 3.3 per cent year-on-year, respectively. Overall positive rent reversion for the period was 9.0 per cent. Hougang mall commenced asset enhancement initiative (AEI) works in April 2025, targeting completion by the third quarter of 2026, with an expected return on investment of approximately 7 per cent on S$51 million in capital expenditure. At present, 64 per cent of the AEI spaces have already been pre-committed.<\/p>\n\n\n\n

LREIT<\/strong> reported that its Singapore portfolio, comprising approximately 90 per cent of its total portfolio by valuation, achieved positive retail rent reversion of 10.4 per cent despite a softer retail landscape. Committed occupancy for Jem and 313@somerset remained high at 99.9 per cent and 98.9 per cent, respectively.<\/p>\n\n\n\n

MPACT<\/strong> recorded lower gross revenue and NPI for FY24\/25, down by 5.1 per cent and 6.1 per cent year-on-year, respectively. However, gross revenue and NPI from MPACT\u2019s Singapore portfolio rose by 1.0 per cent and 1.1 per cent, respectively, driven by VivoCity. Despite disruptions from the ongoing Basement 2 AEI, the mall recorded full-year tenant sales, crossing the S$1 billion milestone for the third consecutive year. MPACT achieved 89.6 per cent committed occupancy as at March 31, 2025. It recorded a 3.6 per cent rental uplift overall, with VivoCity alone seeing a robust 16.8 per cent rent reversion.<\/p>\n\n\n\n

OUE REIT\u2019s<\/strong> retail segment contributes 16.8 per cent of its overall revenue. Mandarin Gallery maintains a 99.5 per cent committed occupancy as at March 31, 2025 and recorded 4.9 per cent positive rent reversion in 1Q25.<\/p>\n\n\n\n

Starhill Global REIT<\/strong> reported full occupancy as at March 31, 2025, for its Singapore retail portfolio. The REIT has an overall portfolio weighted average lease term expiry of 7.2 years by net lettable area, with over 64 per cent of its portfolio leases expiring beyond FY27\/28. Starhill Global REIT\u2019s Singapore retail properties include a 71.49 per cent stake in Wisma Atria and a 27.23 per cent stake in Ngee Ann City. The REIT renewed its master lease with Takashimaya manager Toshin Development Singapore, commencing on June 8, 2025, for an initial term of 12 years, with further renewal options. The new master lease includes built-in rent escalations and an annual profit-sharing arrangement, providing upside for the REIT.<\/p>\n\n\n\n

Suntec REIT<\/strong>\u2019s Singapore retail portfolio recorded improved committed occupancy of 98.2 per cent as at March 31, 2025, compared to 95.8 per cent a year ago. Rent reversion for its Singapore retail properties was 10.3 per cent, with a 91 per cent retention rate.<\/p>\n\n\n\n

For more research and information on Singapore\u2019s REIT sector, visit <\/strong><\/em>sgx.com\/research-education\/sectors<\/strong><\/em><\/a> for the SREITs & Property Trusts Chartbook.<\/strong><\/em><\/p>\n\n\n\n

REIT Watch is a regular column on The Business Times, <\/strong><\/em>read<\/strong><\/em><\/a> <\/strong><\/em><\/a>the original version.<\/strong><\/em><\/p>\n\n\n\n

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