SGX Research: Singapore REITs Post Strong Double-Digit Gains in Q3 2025 as Market Outlook Improves
SGX Research: Singapore REITs Post Strong Double-Digit Gains in Q3 2025 as Market Outlook Improves Singapore’s Real Estate Investment Trusts (SREITs) and Property Trusts sector posted robust...
SGX Research: Singapore REITs Post Strong Double-Digit Gains in Q3 2025 as Market Outlook Improves
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Singapore’s Real Estate Investment Trusts (SREITs) and Property Trusts sector posted robust double-digit total returns in the third quarter of 2025, supported by expectations of upcoming interest rate cuts and resilient market fundamentals. The asset class remains a key pillar of the Singapore Exchange (SGX), with 41 listed trusts collectively valued at S$101 billion.
Attractive Yields and Healthy Balance Sheets Underpin Sector Resilience
SREITs and Property Trusts continue to appeal to income-seeking investors, offering competitive distribution yields alongside prudent capital management.
The average distribution yield for the 38 actively tracked trusts stands at 6.2%, outpacing the Straits Times Index (4.8%), the MAS 10-Year Benchmark Government Bond (1.9%), and the MAS Core Inflation Rate (0.4%) as of September 2025.
The sector’s average gearing ratio is 40%, comfortably below the regulatory gearing cap of 50% for SREITs.
Market-cap-weighted averages show Health Care REITs leading with a yield of 6.5%, followed by Specialized REITs (6.1%) and Diversified REITs (5.8%).
Fundraising Momentum and Strategic Acquisitions Signal Continued Expansion
Fundraising activity remained robust in 2025, with the sector securing S$4 billion year-to-date.
Key Q3 2025 transactions included:
Keppel DC REIT acquiring the remaining stakes in Keppel DC Singapore 7 & 8 and Tokyo Data Center 3 (September 2025).
CapitaLand Integrated Commercial Trust purchasing a 55% interest in CapitaSpring for S$1.045 billion (August 2025).
CapitaLand Ascendas REIT acquiring two freehold land plots in the UK for logistics development (August 2025).
CapitaLand Ascott Trust expanding its portfolio with rental housing assets in Osaka and Kyoto (August 2025).
Sector commentary for Q3 highlighted improving retail sales, lower borrowing costs, and positive rental reversions, which have notably benefited retail-focused REITs. Meanwhile, REIT-focused ETFs saw their Assets Under Management rise 40% over the past year, reflecting renewed investor confidence.
A Global Footprint Anchored in Asia
Singapore remains one of Asia’s most prominent REIT hubs. More than 85% of listed trusts (35 in total) hold assets abroad, offering investors wide geographic exposure. Pan-Asian portfolios span key markets such as Japan (14 trusts), China (8 trusts), and Malaysia (5 trusts).
Over the past decade, the FTSE ST REIT Index delivered an annualized total return of 5.9%, underscoring the sector’s long-term growth and stability.
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