Singapore office Real Estate Investment Trusts (REITs) have demonstrated robust performance in the third quarter of 2025, according to Morningstar’s latest report. Despite a challenging macroeconomic environment influenced by US trade policies, these REITs have benefited from resilient occupancy rates and strong rental reversions in the first half of the year. This performance has eased some concerns over soft leasing demand.
The report highlights that Singapore REITs are currently trading at a 17% discount to book value, with office REITs experiencing the steepest discounts. Xavier Lee, an equity analyst, noted that whilst the risk of significant asset devaluation remains low, investors should consider the current trading discounts as an opportunity.
In addition to office REITs, trends in the retail and industrial sectors were also examined, with top picks identified for potential investors. The ongoing trade negotiations between the US and its partners continue to contribute to market uncertainty, but the resilience shown by Singapore’s office REITs offers a positive outlook.
