Singapore REITs Monthly Update (July 15th, 2025)

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Technical Analysis of FTSE ST REIT Index (FSTAS351020)

FTSE ST Real Estate Investment Trusts (FTSE ST REIT Index) increased from 638.78 to 660.49 (3.40%) compared to last month’s update. It has continued to trade between 622 and 665 (660 currently) following the April flash crash caused by “Liberation Day” announced by US President Donald Trump. The resistance of 665 has been tested 2 times, and a breakout may be possible if the resistance is broken and the uptrend continues. Immediate support is at 622, tested 5 times between April 2024 and most recently in June.

  • Short-term direction: Up
  • Medium-term direction: Sideways
  • Long-term direction: Sideways
  • Immediate Support: Blue Support Line (622), followed by 586 (Mar 2020 crash)
  • Immediate Resistance: 665

 

FTSE REIT Index Chart (2 years)

Previous chart on FTSE ST REIT index can be found in the last post: Singapore REIT Fundamental Comparison Table on June 15th, 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.
  • All REITs have the latest Q1 2025 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. 
  • Listed on 14th July. NTT DC REIT is now included in the calculations.

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 July 15th, 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 remained at 0.78 (Weighted Average: 0.96)
    • Remained at 0.76 in June 2025.
    • Singapore Overall REIT sector is slightly undervalued
  • Most overvalued REITs (based on Price/NAV)
    ParkwayLife REIT 1.68
    Keppel DC REIT 1.46
    Capitaland Ascendas REIT 1.25
    Mapletree Industrial Tr 1.18
    AIMS APAC REIT 1.10
    Frasers Hospitality Trust 1.09

    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
    Manulife US REIT 0.30
    Prime US REIT 0.31
    Keppel Pacific Oak US REIT 0.32
    Acrophyte Hospitality Trust 0.39
    BHG Retail REIT 0.53

Distribution Yields Overview

  • TTM Distribution Yield decreased slightly to 5.86%. (Weighted Average decreased to 5.74%)    
    • Decreased from 5.99% in June 2025. (Weighted Average was 6.08%)
    • 14 of 37 Singapore REITs have ttm distribution yields of above 7%.
  • Highest Distribution Yield REITs (ttm)
    IREIT Global 9.81
    Stoneweg European REIT 9.24
    Sasseur REIT 9.22
    Elite UK REIT 8.70
    ESR REIT 8.68
    United Hampshire REIT 8.64

    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 tightened slightly to 3.90%. (Weighted Average tightened slightly to 3.70%)     
    • Tightened from 3.91% in June 2025. (Weighted Average was 3.74%)
    • 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 decreased to 39.81%. (Weighted Average: 37.88%)
    • Decreased from 39.94% in June 2025. (Weighted Average: 38.35%)  
    • 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 6.15% to S$91.77 Billion.
    • Increased from S$86.45 Billion in June 2025.
    • This increase can be partially attributed (in addition to the bullish performance) to the listing of NTT DC REIT.
  • Biggest Market Capitalisation REITs (S$m):
    Capitaland Integrated Commercial Trust 16202.60
    Capitaland Ascendas REIT 12100.00
    Mapletree Pan Asia Commercial Trust 6579.88
    Mapletree Logistics Tr 5928.39
    Mapletree Industrial Tr 5759.02
    Keppel DC REIT 4926.07
  • Smallest Market Capitalisation REITs (S$m):
    Lippo Malls Indonesia Retail Trust 76.97
    Manulife US REIT 164.53
    BHG Retail REIT 197.45
    Acrophyte Hospitality Trust 208.05
    Prime US REIT 284.82
    Keppel Pacific Oak US REIT 294.32

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 June 2025

Refer to the Detailed 2024 S-REITs Performance Here.

 

SG 10 Year Government Bond Yield

  • SG 10 Year: 2.18% (decreased from 2.25%)

 

Summary

Singapore REITs sector is within a range between 620 and 660. The US 10Y Risk Free Rate has increased slightly to 4.43%, while the SG 10Y Risk Free Rate decreased by 0.07%. However, average yield decreased due to the slight increase in the index, explaining the slight tightening of the Yield Spread w.r.t to the SG Risk Free Rate.

Singapore REITs sector has very strong inversed correlation with US 10Y Risk Free Rate. For S-REIT to come back to live again, we need the US 10 year risk free rate to come down otherwise the performance of Singapore REIT index will continue to be muted.

 

 

US 10 Year Risk Free Rate

 

Fundamentally, the S-REIT sector is trading at a 22% discount (4% if using weighted average) to its fair value, with an average trailing twelve-month (TTM) yield of 5.86%. Yield has come down but this is the natural result if the REIT index increases.

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 (July 15th, 2025)

NTT DC REIT IPO: Prospectus & Summary, comparison with existing Data Centre REITs

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Overview

NTT DC REIT is launching Singapore’s largest real estate investment trust (REIT) IPO in over a decade, seeking to raise approximately US$773 million. The offering comprises 599.9 million units priced at US$1.00 per unit for institutional and international investors, and 30 million units at S$1.276 for the Singapore public. NTT Limited, the sponsor, will retain a 25% stake through a concurrent subscription of 257.6 million units, while GIC, Singapore’s sovereign wealth fund, emerges as a key cornerstone investor with a 9.8% stake. The REIT’s cornerstone investors also include AM Squared, UBS, Hazelview, and others. Trading is expected to commence on July 14, 2025, on the SGX Mainboard.

 

Prospectus | Product Highlights Sheet

Fundamental and Financial Ratios

  • Type: Data Centers (Carrier-neutral, Tier III-equivalent, Global)
  • Sponsor: NTT Limited
  • REIT Manager: NTT DC REIT Manager Pte. Ltd.
  • Total Units Offered: 599,887,100
  • Portfolio: 6 Data Centre Properties across US, Austria, and Singapore
  • Portfolio Size: US$1.572 billion (~S$2.02 billion)
  • IPO Offer Price: US$1.00, S$1.276
  • NAV per Unit: ~US$0.95 (calculated)
  • Price / NAV: ~1.05x (approx.)
  • Gearing Ratio: 35.0%
  • Forecasted Distribution Yield: 7.5% (9M25/26), 7.8% (FY26/27)
  • Distribution Policy: 100% of distributable income (initial years); semi-annual distributions

Lease Management Ratios

  • Occupancy Rate: 94.3%
  • WALE: 4.8 years (by Monthly Base Rent)
  • Customer Mix: 51% hyperscale, 49% colocation
  • Top 10 Tenant Contribution: 62.6% (excluding NTT Group)

Debt Management Ratios

  • Forecasted Interest Coverage Ratio: Not disclosed in exact ratio form, but interest cost forecasted at ~3.9%
  • Debt Maturity: No maturities for next 3 years; 2x 1-year extension options
  • Term Loan Composition: US$525 million; 70% fixed or hedged

IPO Information

  • IPO Offer Price: US$1.00 / S$1.276
  • Offer Closing Date: 10 July 2025, 12:00 p.m.
  • Listing Date: 14 July 2025, 2:00 p.m.

Portfolio Overview

The REIT’s portfolio includes six carrier-neutral, Tier III or equivalent data center assets across the US, Austria, and Singapore, with an appraised value of approximately US$1.6 billion and a combined IT load of 90.7 MW. The assets are supported by a diversified mix of hyperscale (51%) and colocation (49%) tenants, including major tech firms and cloud providers, with a weighted average lease expiry of 4.8 years and a high occupancy rate of 94.3%. The REIT is positioned for organic growth through built-in escalations and potential asset enhancements, and benefits from a right-of-first-refusal pipeline of over 2,000 MW from its sponsor’s global portfolio.

 

Lease Management Overview

 

 

How NTT DC REIT stacks up with the 2 already listed other Data Centre REITs

Keppel DC REIT remains having the largest and most geographically diverse portfolio by number and AUM with 24 assets across Asia-Pacific and Europe, heavily weighted towards Singapore (66% by AUM). Digital Core REIT’s 11 asset portfolio is concentrated in the US (51%), Germany, and Canada. In contrast, NTT DC REIT holds a smaller portfolio of six assets located in the US (67%), Singapore (17%), and Austria (16%).

 

 

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 ReadingNTT DC REIT IPO: Prospectus & Summary, comparison with existing Data Centre REITs

Singapore REITs Monthly Update (June 15th, 2025)

  • Post author:

 

Technical Analysis of FTSE ST REIT Index (FSTAS351020)

FTSE ST Real Estate Investment Trusts (FTSE ST REIT Index) decreased from 631.68 to 638.78 (1.12%) compared to last month’s update. It has continued to trade between 622 and 200D SMA (658 currently) following the April flash crash caused by “Liberation Day” announced by US President Donald Trump. 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: 200D SMA

 

FTSE REIT Index Chart (2 years)

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

 

Fundamental Analysis of 37 Singapore REITs

The following is the compilation of 37 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.
  • All REITs have the latest Q1 2025 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 has been removed.

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 June 13th, 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 remained at 0.76 (Weighted Average: 0.95)
    • Remained at 0.76 in May 2025.
    • Singapore Overall REIT sector is slightly undervalued
  • Most overvalued REITs (based on Price/NAV)
    ParkwayLife REIT 1.66
    Keppel DC REIT 1.49
    Capitaland Ascendas REIT 1.19
    Mapletree Industrial Tr 1.15
    Frasers Hospitality Trust 1.09
    AIMS APAC REIT 1.07

    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
    Manulife US REIT 0.26
    Prime US REIT 0.27
    Keppel Pacific Oak US REIT 0.28
    Acrophyte Hospitality Trust 0.42
    OUE REIT 0.48

Distribution Yields Overview

  • TTM Distribution Yield decreased slightly to 5.99%. (Weighted Average decreased to 6.08%)    
    • Decreased from 6.27% in May 2025. (Weighted Average was 6.17%)
    • 19 of 37 Singapore REITs have ttm distribution yields of above 7%.
  • Highest Distribution Yield REITs (ttm)
    IREIT Global 9.69
    Sasseur REIT 9.50
    United Hampshire REIT 9.23
    Stoneweg European REIT 9.18
    ESR REIT 9.17
    Elite UK REIT 8.70

     

    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 tightened slightly to 3.91%. (Weighted Average tightened slightly to 3.74%)     
    • Tightened from 3.93% in May 2025. (Weighted Average was 3.79%)
    • 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 39.94%. (Weighted Average: 38.35%)
    • Increased from 39.80% in May 2025. (Weighted Average: 38.27%)  
    • 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 decreased by 2.01% to S$86.45 Billion.
    • Decreased from S$88.23 Billion in May 2025.
    • This decrease can be attributed one-time, due to the delisting of Paragon REIT.
  • Biggest Market Capitalisation REITs (S$m):
    Capitaland Integrated Commercial Trust 15545.74
    Capitaland Ascendas REIT 11484.00
    Mapletree Pan Asia Commercial Trust 6316.68
    Mapletree Logistics Tr 5675.04
    Mapletree Industrial Tr 5587.96
    Keppel DC REIT 5036.52
  • Smallest Market Capitalisation REITs (S$m):
    Lippo Malls Indonesia Retail Trust 76.97
    Manulife US REIT 110.10
    Acrophyte Hospitality Trust 174.03
    Elite UK REIT 196.09
    Prime US REIT 196.20
    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 2025

Refer to the Detailed 2024 S-REITs Performance Here.

 

SG 10 Year Government Bond Yield

  • SG 10 Year: 2.25% (decreased from 2.51%)

 

Summary

Singapore REITs sector is within a range between 620 and 660. The US 10Y Risk Free Rate has decreased to 4.41%, while the SG 10Y Risk Free Rate decreased by 0.26%. However, average yield decreased due to the slight increase in the index, explaining the slight tightening of the Yield Spread w.r.t to the SG Risk Free Rate.

Singapore REITs sector has very strong inversed correlation with US 10Y Risk Free Rate. For S-REIT to come back to live again, we need the US 10 year risk free rate to come down otherwise the performance of Singapore REIT index will continue to be muted.

 

 

US 10 Year Risk Free Rate

 

Fundamentally, the S-REIT sector is trading at a 24% discount (5% if using weighted average) to its fair value, with an average trailing twelve-month (TTM) yield of 6.03%. 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 (June 15th, 2025)