Singapore’s real estate investment trusts (S-REITs) are set to benefit from a shift in US monetary policy, which is anticipated to ease in response to a slowing job market. This change is expected to enhance liquidity, making S-REITs an attractive investment. Analysts maintain an “OVERWEIGHT” rating on the sector, recommending the purchase of blue-chip S-REITs such as CapLand Ascendas (CLAR), CapLand Ascott (CLAS), Keppel DC REIT (KDCREIT), Keppel REIT (KREIT), and Lendlease REIT (LREIT).
In August, the FTSE ST All-Share REITs Index rose by 2.3%. Notably, CapLand Integrated Commercial Trust (CICT) is set to gain full ownership of CapitaSpring, a premium Grade A office tower in Singapore’s central business district, by acquiring stakes from CapitaLand Development and Mitsubishi Estate Co. This acquisition, valued at $1.9b, is expected to complete in the third quarter of 2025.
CapLand Ascendas is expanding its UK logistics portfolio by acquiring two plots of freehold land in the East Midlands for $350.1m. The development of four logistics properties on these plots is projected to increase the portfolio’s asset value by 43.5% to $1.2b.
Meanwhile, Lendlease REIT is divesting the office component of Jem for $462m, leased to the Ministry of National Development. This move is expected to reduce LREIT’s aggregate leverage from 42.6% to 35% on a pro forma basis.
The anticipated US rate cuts and strategic acquisitions and divestments by S-REITs signal a promising outlook for investors.
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