Singapore REITs Monthly Update (May 11th, 2025)
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.
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