With interest rates on Singapore Treasury Bills (T-bills) and Singapore Savings Bonds (SSBs) falling to multi-year lows, investors are reconsidering how to manage their cash and generate stable returns. Meanwhile, Singapore REITs – despite underperforming US equities over the past three years – are gaining renewed attention as market conditions shift and the interest rate environment evolves. This seminar will examine current trends in safe-yield products, explore alternative cash management strategies, and assess whether now is the right time to pivot into Singapore REITs. Participants will gain practical insights into risks and opportunities ahead, helping them make informed decisions for 2025 and beyond.
You will gain insights on:
• Falling Yields on Safe-Haven Products: Yields on Singapore Treasury Bills (T-bills) and Singapore Savings Bonds (SSBs) have declined to multi-year lows, with 6-month T-bills falling below 2% and SSBs offering an average of around 2.49%. As these rates become less competitive prompting investors to seek alternative options for parking with cash.
• Where to Park Your Money Now: Explore how recent rate cuts impact REITs and what they mean for investors seeking better returns
• Singapore REITs: Although Singapore REITs have underperformed US equities in recent years, they are showing signs of recovery in 2025, supported by resilient fundamentals, attractive valuations, and dividend yields around 6%. Amid global uncertainty and interest rate sensitivity, investors should focus on REITs with strong balance sheets, low gearing, and sustainable distributions to balance risk and opportunity.
Secure your seat for this exclusive in-person event held at SGX Centre on Wednesday 13 Aug 2025 to find out!
Event Details
Date & Time: 13th August 2025, 7.00pm – 9.30pm Wednesday
Mr. Kenny Loh is a Certified Estate Planning Consultant and also a CERTIFIED FINANCIAL PLANNER (CFP). Kenny has more than 10 years in Holistic Estate Planning experience, using a unique “3-in-1 Will, LPA and Standby Trust” solution, to address his client’s social consideration, legal obligation, emotional needs and family’s harmony in his approach. Kenny has Double Master degree in Business Administration and Electrical Engineering, and also an AEPP (Associate Estate Planning Practitioner) jointly awarded by The Society of Will Writers & Estate Planning Practitioners (SWWEPP) of The United Kingdom, in collaboration with Estate Planning Practitioner Limited (EPPL), the accreditation body for Asia.
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)
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 REITshave 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.
FY DPU: If Green, FY DPU for the recent 4 Quarters is higher than that of the preceding 4 Quarters.If Lower, it isRed.
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.
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.
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.
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 portfolioby 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.
