Singapore REITs Monthly Update (February 16th, 2025)

Technical Analysis of FTSE ST REIT Index (FSTAS351020)

FTSE ST Real Estate Investment Trusts (FTSE ST REIT Index) decreased from 647.67 to 631.70 (-2.47%) compared to last month’s update. Singapore REITs index is trading sideway near the support level.

  • Short-term direction: Sideways
  • Medium-term direction: Sideways
  • Long-term direction: Sideways
  • Immediate Support: Blue Support Line 
  • Immediate Resistance: 200D SMA

FTSE REIT Index Chart (2 years)

Close-up

Previous chart on FTSE ST REIT index can be found in the last post: Singapore REIT Fundamental Comparison Table on January 18th, 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.

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 February 14th, 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 0.88 (Weighted Average: 0.88)
    • Remained at 0.88 in January 2025.
    • Singapore Overall REIT sector is slightly undervalued
  • Most overvalued REITs (based on Price/NAV)
    ParkwayLife REIT 1.61
    Keppel DC REIT 1.37
    Mapletree Industrial Tr 1.17
    Capitaland Ascendas REIT 1.16
    Paragon REIT 1.06
    AIMS APAC REIT 0.99

    EC World REIT is currently suspended, however at current Price and NAV/Unit values it has a value of 4.67 (N.M)

  • Most undervalued REITs (based on Price/NAV)
    Manulife US REIT 0.29
    Prime US REIT 0.31
    Acrophyte Hospitality Trust 0.32
    Keppel Pacific Oak US REIT 0.33
    Lippo Malls Indonesia Retail Trust 0.35
    OUE REIT 0.48

Distribution Yields Overview

  • TTM Distribution Yield increased to 6.15%. (Weighted Average increased slightly to 6.27%)    
    • Increased from 6.08% in January 2025. (Weighted Average was 6.20%)
    • xx of 38 Singapore REITs have ttm distribution yields of above 7%.
  • Highest Distribution Yield REITs (ttm)
    Acrophyte Hospitality Trust 12.16
    IREIT Global 11.92
    Stoneweg European REIT 9.29
    Elite UK REIT 8.97
    Sasseur REIT 8.96
    ESR REIT 8.83

    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 3.30%. (Weighted Average tightened slightly to 3.92%)     
    • Widened from 3.09% in January 2025. (Weighted Average was 4.00%)
    • 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 slightly to 39.52%. (Weighted Average: 38.26%)
    • Decreased slightly from 39.60% in January 2025. (Weighted Average: 38.76%)  
    • Gearing Ratios are updated quarterly. Therefore there are no updates this month.
    • S-REITs Gearing Ratio has been on a steady uptrend. It was 35.55% in Q4 2019.
  • Highest Gearing Ratio REITs
    Manulife US REIT 58.2
    EC World REIT 56.1
    Prime US REIT 47.8
    Lippo Malls Indonesia Retail Trust 45.0
    Keppel Pacific Oak US REIT 43.7
    Acrophyte Hospitality Trust 43.2

    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 1.86% to S$87.81 Billion.
    • Increased from S$86.21 Billion in January 2025.
  • Biggest Market Capitalisation REITs (S$m):
    Capitaland Integrated Commercial Trust 14377.99
    Capitaland Ascendas REIT 11220.00
    Mapletree Pan Asia Commercial Trust 6211.40
    Mapletree Logistics Tr 6170.76
    Mapletree Industrial Tr 5781.44
    Keppel DC REIT 4638.90
  • Smallest Market Capitalisation REITs (S$m):
    Acrophyte Hospitality Trust 127.60
    Lippo Malls Indonesia Retail Trust 153.94
    Manulife US REIT 183.50
    Elite UK REIT 190.14
    Prime US REIT 222.36
    EC World REIT 226.76

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 January 2024

Refer to the Detail 2024 S-REITs Performance Here.

SG 10 Year Government Bond Yield

  • SG 10 Year: 2.85% (decreased from 2.99%)

 

Summary

Singapore REITs sector is consolidating at the the support level of about 630 of FTSE ST REIT Index. The US 10Y Risk Free Rate dropped to 4.48%, but this did not correlate to an increase in the S-REITs index. Singapore REITs sector is expected to be muted as long as US 10 Year Risk Free rate stay at current level.

 

US 10 Year Risk Free Rate

Fundamentally, the S-REIT sector is trading at a 12% discount to its fair value, with an average trailing twelve-month (TTM) yield of 6.15%. 

According to the current Fed Fund Rate projections from the CME Group, the market expects a 25 basis point cut by end 2025, with a total reduction of 100 basis points cut from the peak of the interest rate cycle in 2024. 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 Q2 or Q3 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

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