Singapore’s Real Estate Investment Trusts (S-REITs) are set for a promising 2026, according to RHB’s latest report. The financial services group has reiterated its ‘overweight’ recommendation for the sector, highlighting a favourable economic outlook, moderated interest rates, and supportive government policies as key drivers. The report notes that investor interest in S-REITs has surged, buoyed by strong Singapore dollar liquidity and limited alternative yield options.
RHB’s top picks in the sector include CapitaLand Integrated Commercial Trust, CapitaLand Ascendas REIT, Frasers Centrepoint Trust, Suntec REIT, and AIMS APAC REIT. These trusts are trading closer to book value and offer yields of approximately 6%, making them attractive investment options. Analyst Vijay Natarajan emphasised the sector’s resilience, stating, “S-REITs have turned the corner with a brighter 2026 outlook.”
The report also underscores the importance of S-REITs in the local market, with their ability to attract fund flows and maintain investor interest. This is particularly significant given the current economic climate, where lower interest rates and government initiatives are expected to revitalise the market.
Looking ahead, the positive momentum in the S-REIT sector is likely to continue, supported by a stable economic environment and strategic government policies. Investors are advised to consider these factors when evaluating their investment portfolios.
