Singapore REITs Monthly Update (May 11th, 2025)

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Technical Analysis of FTSE ST REIT Index (FSTAS351020)


FTSE ST Real Estate Investment Trusts (FTSE ST REIT Index) decreased from 628.61 to 631.68 (0.49%) compared to last month’s update. Following the flash crash in April 2025 due to Trump’s Tariff, the REIT index get close to similar level last seen in the March 2020 COVID crash (586). It has since recovered, but not fully. Immediate support is at 622, tested 4 times between April 2024 and most recently on 15th May.

  • Short-term direction: Sideways
  • Medium-term direction: Sideways
  • Long-term direction: Sideways
  • Immediate Support: Blue Support Line (622), followed by 586 (Mar 2020 crash)
  • Immediate Resistance: 50D SMA and 200D SMA

 

FTSE REIT Index Chart (2 years)

FTSE REIT Index Chart (5 years)

 

Previous chart on FTSE ST REIT index can be found in the last post: Singapore REIT Fundamental Comparison Table on March 11th, 2025.

 

Fundamental Analysis of 38 Singapore REITs


The following is the compilation of 38 Singapore REITs with colour-coding of the Distribution Yield, Gearing Ratio and Price to NAV Ratio.

  • The Financial Ratios are based on past data and these are lagging indicators.
  • REITs highlighted in orange have the latest Q4 2024 values, otherwise they have the Q3 2024 values.
  • I have introduced weighted average (weighted by market cap) to the financial ratios, in addition to the existing simple average ratios. This is another perspective where smaller market cap REITs do not disproportionately affect the average ratios. As of May 2025 I have removed EC World REIT from these calculations. 
  • Following its delisting, Paragon REIT will be removed from the next update onwards.

Data from REITsavvy Screener. https://screener.reitsavvy.com/

 

 

 

What does each Column mean?

  • FY DPU: If Green, FY DPU for the recent 4 Quarters is higher than that of the preceding 4 Quarters. If Lower, it is Red.
  • Yield (ttm): Yield, calculated by DPU (trailing twelve months) and Current Price as of May 16th, 2025.
  • Gearing (%): Leverage Ratio.
  • Price/NAV: Price to Book Value. Formula: Current Price over Net Asset Value per Unit.
  • Yield Spread (%): REIT yield (ttm) reference to Gov Bond Yields. REITs are referenced to SG Gov Bond Yield.

As of May 2024, all REITs’ Yield Spread will be referenced to SG Gov Bond Yields, regardless of trading currency.

Price/NAV Ratios Overview

  • Price/NAV decreased to 0.76 (Weighted Average: 0.76)
    • Decreased from 0.93 in March 2025.
    • Singapore Overall REIT sector is slightly undervalued
  • Most overvalued REITs (based on Price/NAV)
    ParkwayLife REIT 1.70
    Keppel DC REIT 1.40
    Capitaland Ascendas REIT 1.20
    Mapletree Industrial Tr 1.15
    Frasers Hospitality Trust 1.08
    Paragon REIT 1.04

    EC World REIT is currently suspended, however at current Price and NAV/Unit values it has a value of 7.00 (N.M)

  • Most undervalued REITs (based on Price/NAV)
    Lippo Malls Indonesia Retail Trust 0.18
    Prime US REIT 0.25
    Keppel Pacific Oak US REIT 0.28
    Manulife US REIT 0.30
    Acrophyte Hospitality Trust 0.32
    OUE REIT 0.48

Distribution Yields Overview

  • TTM Distribution Yield decreased slightly to 6.27%. (Weighted Average decreased to 6.17%)    
    • Decreased from 6.30% in March 2025. (Weighted Average was 6.27%)
    • 19 of 38 Singapore REITs have ttm distribution yields of above 7%.
  • Highest Distribution Yield REITs (ttm)
    IREIT Global 11.51
    ESR REIT 9.59
    Sasseur REIT 9.50
    Stoneweg European REIT 9.42
    Elite UK REIT 9.26
    United Hampshire REIT 9.02

    Reminder that these yield numbers are based on current prices. 

    • Some REITs opted for semi-annual reporting and thus no quarterly DPU was announced.
    • A High Yield should not be the sole ratio to look for when choosing a REIT to invest in.
  • Yield Spread widened to 3.93%. (Weighted Average tightened slightly to 3.79%)     
    • Widened from 3.66% in March 2025. (Weighted Average was 3.90%)
    • From May 2024 onwards, all my yield spread measurements are now in relation to SG Gov Bond Yields, no longer a mix with US Gov Bond Yields.

 

Gearing Ratios Overview

  • Gearing Ratio increased to 39.80%. (Weighted Average: 38.27%)
    • Increased from 38.29% in March 2025. (Weighted Average: 38.15%)  
    • Gearing Ratios are updated quarterly. All values are based on the most recent Q4 2024 updates.
    • S-REITs Gearing Ratio has been on a steady uptrend. It was 35.55% in Q4 2019.
  • Highest Gearing Ratio REITs
    Manulife US REIT 59.4
    EC World REIT 56.8
    Prime US REIT 46.8
    Lippo Malls Indonesia Retail Trust 44.2
    Keppel Pacific Oak US REIT 43.7
    Suntec REIT 43.4

    MUST and EC World REIT’s gearing ratio has exceeded MAS’s gearing limit of 50%. However, the aggregate leverage limit is not considered to be breached if exceeding the limit is due to circumstances beyond the control of the REIT Manager.

Market Capitalisation Overview

  • Total Singapore REIT Market Capitalisation increased by 0.47% to S$88.23 Billion.
    • Increased from S$87.81 Billion in March 2025.
  • Biggest Market Capitalisation REITs (S$m):
    Capitaland Integrated Commercial Trust 15034.85
    Capitaland Ascendas REIT 11572.00
    Mapletree Pan Asia Commercial Trust 6369.32
    Mapletree Logistics Tr 5624.37
    Mapletree Industrial Tr 5587.96
    Keppel DC REIT 4727.26
  • Smallest Market Capitalisation REITs (S$m):
    Lippo Malls Indonesia Retail Trust 76.97
    Manulife US REIT 128.45
    Acrophyte Hospitality Trust 133.42
    Prime US REIT 183.12
    Elite UK REIT 184.20
    Keppel Pacific Oak US REIT 198.45

Disclaimer: The above table is best used for “screening and shortlisting only”. It is NOT for investing (Buy / Sell) decision. If you want to know more about investing in REITs, scroll down for more information on the REITs courses.

 

Top 10 Best/Worst Performers of May 2024


ESR REIT is not taken into account due to the recent share consolidation on 5th May.

Refer to the Detailed 2024 S-REITs Performance Here.

 

SG 10 Year Government Bond Yield

  • SG 10 Year: 2.513% (decreased from 2.64%)

 

Summary


Singapore REITs sector is within a range between 620 and 660. The US 10Y Risk Free Rate has increased to 4.48%, while the SG 10Y Risk Free Rate decreased by 0.13%. This explains the widening in Yield Spread of S-REITs w.r.t to the SG Risk Free Rate.

Singapore REITs sector has very strong inversed correlation with US 10Y Risk Free Rate and it is predicted the Singapore REIT may reverse to uptrend once there is a confirm trend reversal of the risk free rate.

 

 

US 10 Year Risk Free Rate

 

Fundamentally, the S-REIT sector is trading at a 24% discount to its fair value, with an average trailing twelve-month (TTM) yield of 6.27%. This is very undervalued and at levels only seen previously in the March 2020 COVID crash.

According to the current Fed Fund Rate projections from the CME Group, the market expects a 25 basis point cut by Q3 2025. The cut in interest rate will help to boost the DPU of the REITs which have shorter debt maturity profile and higher percentage of floating rate. However, the impact will only be reflected in the financial statement probably in Q3 or Q4 2025. 

 

 

 

Kenny Loh is a distinguished Wealth Advisory Director with a specialization in holistic investment planning and estate management. He excels in assisting clients to grow their investment capital and establish passive income streams for retirement. Kenny also facilitates tax-efficient portfolio transfers to beneficiaries, ensuring tax-efficient capital appreciation through risk mitigation approaches and optimized wealth transfer through strategic asset structuring.

In addition to his advisory role, Kenny is an esteemed SGX Academy trainer specializing in S-REIT investing and regularly shares his insights on MoneyFM 89.3. He holds the titles of Certified Estate & Legacy Planning Consultant and CERTIFIED FINANCIAL PLANNER (CFP).

With over a decade of experience in holistic estate planning, Kenny employs a unique “3-in-1 Will, LPA, and Standby Trust” solution to address clients’ social considerations, legal obligations, emotional needs, and family harmony. He holds double master’s degrees in Business Administration and Electrical Engineering, and is an Associate Estate Planning Practitioner (AEPP), a designation jointly awarded by The Society of Will Writers & Estate Planning Practitioners (SWWEPP) of the United Kingdom and Estate Planning Practitioner Limited (EPPL), the accreditation body for Asia.

You can join his Telegram channel #REITirement – SREIT Singapore REIT Market Update and Retirement related news. https://t.me/REITirement

Continue ReadingSingapore REITs Monthly Update (May 11th, 2025)

REITside Talk with Simon Garing, Stoneweg European REIT’s CEO

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Beyond the boardroom: Join REITside Talk for exclusive insights and expert interviews as the brand-new series takes on a relaxed manner exploration of REIT properties

In our second episode, we speak on the impact of US tariffs on Europe. As a preview, we’re sharing a special segment focusing on this week’s key themes: Tariffs, Turbulence & Tailwinds. Discover the surprising connection between Trump-era tariffs, declining interest rates, and Europe’s semiconductor goals—and how Stoneweg European REIT is strategically positioned within this evolving European real estate landscape.

We speak to Simon Garing, CEO of Stoneweg European REIT.

 

Preview

 

Main Interview

 

 

Summary 

Continue ReadingREITside Talk with Simon Garing, Stoneweg European REIT’s CEO

Ringing in a New Era: Stoneweg European REIT’s Market Debut and Strategic Vision

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I am honored to have been invited by Elena Arabadjieva to the Market Opening at SGX, where Stoneweg European REIT (SERT) and its sponsor, the Stoneweg Icona Capital Platform, officially rang the opening bell, marking the start of trading on the SGX securities market.

Last week, I also had the privilege of meeting with the senior management team, including Simon Garing (CEO) and Shane Hagan (CFO), to discuss strategic insights with the new sponsor, Stoneweg Icona Capital. Joining us were Ernest Lim, Reginald Koh and Royston Yang.

𝐊𝐞𝐲 𝐓𝐚𝐤𝐞𝐚𝐰𝐚𝐲𝐬 𝐟𝐫𝐨𝐦 𝐭𝐡𝐞 𝐥𝐮𝐧𝐜𝐡 𝐦𝐞𝐞𝐭𝐢𝐧𝐠:
✅Focus on Share Price: Management is evaluated based on the share price, aligning their goals with investors’ interests. They are committed to enhancing SERT’s share price.
✅Strategic Pivot: The long-term goal is to shift the portfolio towards logistics and light industrial assets, while maintaining high-grade current office properties with strong development potential.
✅Financial Stability: No debt refinancing is planned for 2025, and efforts are underway to strengthen the balance sheet. A credit rating upgrade is anticipated due to de-risking efforts, improved operating metrics, and the recovery of the commercial office market in Europe.
✅Expansion Plans: SERT’s senior management has identified top-notch properties in the sponsor’s portfolio as a wish list, potentially expanding into new countries (Switzerland?).
✅Valuation Stability: Valuations are expected to stabilize as the cap rate may have peaked and stabilized.
✅Low Vacancy Rates: Office vacancy rates are relatively low compared to US commercial offices.
✅Institutional Holdings: An increase in institutional holdings is anticipated.

𝐒𝐭𝐨𝐧𝐞𝐰𝐞𝐠 𝐄𝐮𝐫𝐨𝐩𝐞𝐚𝐧 𝐑𝐄𝐈𝐓 𝐚𝐭 𝐚 𝐆𝐥𝐚𝐧𝐜𝐞:
🟡Sponsor: Stoneweg Icona Capital (28% stake in SERT)
🟡Sector: Diversified
🟡Property Types: Office (42.7%), Logistics & Light Industry (55.3%)
🟡Portfolio: Stoneweg European REIT Portfolio
🟡Assets: 105 properties
🟡TTM Distribution Yield: 9.4%
🟡Price / NAV: 0.74
🟡Gearing Ratio: 40.2%
🟡Interest Coverage Ratio: 3.1x
🟡MSCI ESG Rating: A

Additionally, I recently had the opportunity to visit properties located in the Netherlands during my family holiday last June.
https://lnkd.in/gsymb3gQ

Kenny Loh is an Associate Wealth Advisory Director and REITs Specialist of Singapore’s top Independent Financial Advisor. He helps clients construct diversified portfolios consisting of different asset classes from REITs, Equities, Bonds, ETFs, Unit Trusts, Private Equity, Alternative Investments, Digital Assets and Fixed Maturity Funds to achieve an optimal risk adjusted return. Kenny is also a CERTIFIED FINANCIAL PLANNER, SGX Academy REIT Trainer, Certified IBF Trainer of Associate REIT Investment Advisor (ARIA) and also invited speaker of REITs Symposium and Invest Fair.

You can join my Telegram channel #REITirement – SREIT Singapore REIT Market Update and Retirement related news. https://t.me/REITirement

Continue ReadingRinging in a New Era: Stoneweg European REIT’s Market Debut and Strategic Vision