Industry News

Frasers Centrepoint Trust (FCT), a major owner of suburban retail malls in Singapore, reported an impressive 99.9% occupancy rate for its portfolio in the third quarter of FY25, excluding Hougang Mall, which is undergoing asset enhancement initiatives (AEI). The trust, which owns 10 suburban malls and one office building, is also planning a holistic AEI for Northpoint City, following the acquisition of additional levels in Yishun 10 by its sponsor, Frasers Property, according to a UOBKayHian report.

FCT’s suburban malls have benefited from the disbursement of Community Development Council (CDC) vouchers, which contributed to a 4.4% year-on-year increase in tenant sales. The trust has also introduced 59 new-to-portfolio tenancies this year, further enhancing its retail offerings. The completion of AEI at Tampines 1 and the introduction of new tenants have driven growth in shopper traffic by 2.1% year-on-year.

The trust’s financial health remains robust, with a manageable aggregate leverage of 40.4% as of June 2025, and an average cost of debt reduced to 3.7% in Q3 FY25. The acquisition of Northpoint City South Wing (NCSW) for $1,133m (S$1,133m) is expected to expand FCT’s portfolio valuation by 21% to $6.4b (S$6.4b), increasing its market share of suburban malls to 10.3%.

FCT’s strategic focus on dominant suburban malls is evident in its plans for Northpoint City, where it aims to unlock value through AEI by optimising tenant mix and enhancing retail space. The trust maintains a positive outlook, with expectations of continued positive rental reversions and a distribution yield of 5.8% for FY26.
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Keppel DC REIT, Asia’s first pure-play data centre real estate investment trust, has reported a significant 51% positive rental reversion for the first half of 2025. This growth was largely attributed to the renewal of colocation leases, particularly from SGP4, which contributed 11% to the rental income. The trust’s recent acquisitions, SGP7 and SGP8, also played a crucial role, accounting for about a quarter of the total net property income (NPI), according to a UOBKayHian report.

The REIT’s gross revenue surged by 34.4% to $154.5 million (S$211.3 million), whilst NPI increased by 37.8% to $133.8 million (S$182.8 million), bolstered by contributions from the newly acquired Tokyo Data Centre 1. Despite divestments in Sydney and Germany, the REIT maintained a robust performance, with a distributable income rise of 57.2% to $92.9 million (S$127.1 million).

Keppel DC REIT’s strategic focus on hyperscale data centres is evident as it seeks opportunities in Japan, South Korea, and Europe. The REIT aims to develop long-term relationships with hyperscale tenants, targeting data centres with a power capacity of 20-50MW. The tight vacancy in Singapore is expected to sustain positive rental reversion into 2026.

The REIT’s portfolio occupancy slightly dipped to 95.8% due to a vacancy at SGP1, but plans are underway to enhance its capabilities, including potential AI enhancements. Keppel DC REIT’s inclusion in the Straits Times Index from 23 June 2025 underscores its growing prominence in the market. The management maintains a “BUY” recommendation with a target price of $1.91 (S$2.69), citing stable debt costs and strategic growth initiatives.
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Singapore’s labour market showed resilience in the second quarter of 2025, with total employment rising by 8,400, according to advance estimates from the Ministry of Manpower. This growth, however, marks a slowdown compared to the 11,300 increase seen in the same period last year. The rise in employment was driven by gains among both residents and non-residents, although outward-oriented sectors like Professional Services and Information & Communications continued to face challenges.

The report highlights that resident employment saw notable increases in Financial Services and Health & Social Services. Conversely, sectors such as Retail Trade experienced declines as employers adjusted post-seasonal hiring from the previous quarter. Non-resident employment growth was primarily supported by Work Permit Holders in the Construction sector.

Unemployment rates for residents and citizens rose slightly in June 2025, reaching 2.9% and 3.0% respectively, returning to levels observed in March. Despite this uptick, the rates remain within the non-recessionary range. Retrenchments remained stable at 3,500, with business reorganisation cited as the primary reason.

Looking ahead, the Ministry of Manpower anticipates that employment will continue to grow, albeit at a more moderate pace than in 2024. The global economic uncertainty is expected to impact hiring and wage growth, particularly in outward-oriented sectors. The Labour Market Report for Q2 2025, due in mid-September, will provide further details on employment trends and sectoral data.
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Mapletree Industrial Trust (MINT) has announced its first quarter results for the financial year ending March 2026, revealing a slight dip in occupancy to 91.4%, whilst achieving a strong rental reversion of 8.2%. The trust reported a 0.3% year-on-year increase in revenue to S$175.9 million, driven by higher contributions from its Osaka data centre and positive lease renewals, although this was partially offset by lower contributions from its US data centre portfolio, according to a CGS International report.

Despite the occupancy decline, MINT’s distribution per unit (DPU) for the quarter was 3.27 Singapore cents, a 4.7% decrease from the previous year, primarily due to lower joint venture contributions and the absence of divestment gains. However, excluding these divestment gains, the DPU would have only slipped by 1.5% year-on-year.

The trust’s management has indicated that gearing could reduce to 37% following the completion of the sale of three Singapore properties by the third quarter of 2025. This sale is expected to generate S$535.5 million. MINT’s strategy includes tenant retention and exploring divestment opportunities, particularly within its US data centre portfolio.

Analysts have adjusted their forecasts, reducing the FY26-28 distribution per unit estimates by up to 2.78% due to the anticipated income vacuum from asset sales. Despite this, MINT maintains an “Add” rating, with a revised target price of S$2.49, citing its resilient portfolio metrics and an attractive projected dividend yield of 6.3% for FY26. Potential catalysts for a re-rating include better-than-expected rental reversions, whilst risks involve non-renewals at data centre lease expiries and a global economic slowdown.
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iFAST Corporation Ltd is set to experience accelerated profit growth in the second half of 2025, driven by its expanding Hong Kong business. The company’s net revenue for the second quarter of 2025 reached S$80.0 million, marking a 30.4% year-on-year increase, as the onboarding of trustees for Hong Kong’s e-Mandatory Pension Fund (eMPF) project progresses. This growth is expected to continue, with iFAST forecasting increased profitability in the upcoming quarters, according to a CGS International report.

The Hong Kong segment’s contribution to iFAST’s overall performance has been significant, with net revenue from this region growing by 40.1% year-on-year in the second quarter. Despite lowering its full-year pre-tax profit guidance for Hong Kong from HK$500 million to HK$380 million, iFAST remains optimistic about exceeding these targets as revenue recognition accelerates in the latter half of the year.

iFAST’s core business has also shown resilience, with assets under administration rising by 5.9% quarter-on-quarter to S$27.2 billion. This growth is supported by increased unit trust subscriptions and a substantial rise in customer deposits for its UK banking operations.

The company has raised its earnings per share estimates for 2025 to 2027 by up to 4.1%, reflecting improved revenue contributions from Hong Kong. Consequently, iFAST’s target price has been lifted to S$9.20, supported by a projected 27.8% compound annual growth rate in earnings per share from 2024 to 2027.

Looking ahead, iFAST aims to leverage its growing Hong Kong operations and UK banking contributions to sustain its upward trajectory. However, potential risks include missing revenue guidance for Hong Kong and stagnant assets under administration, which could impact its wealth management business.
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Raffles Medical Group (RMG) has announced a 4.8% year-on-year increase in its net profit after tax and minority interests (PATMI) for the first half of 2025, reaching S$32.1 million. This growth aligns with the company’s and Bloomberg’s consensus forecasts, despite challenges in its insurance services segment. The group’s revenue in China remained flat on a constant currency basis, but fell by 1.9% year-on-year due to foreign exchange effects, according to a CGS International report.

The insurance services segment reported a pre-tax loss of S$3.1 million, attributed to expected losses from new insurance contracts. However, RMG anticipates a potential write-back of these losses in the second half of 2025 if they do not materialise. The group’s healthcare services saw a decline in pre-tax profit margin, impacting overall profitability.

RMG is actively expanding its presence in China through strategic collaborations. In April, RafflesHospital Shanghai partnered with Shanghai Jiao Tong University School of Medicine to enhance resource sharing and elevate private healthcare standards. A similar partnership was established between RafflesHospital Chongqing and the First Affiliated Hospital of Chongqing Municipality. These collaborations aim to improve RMG’s reputation and bed utilisation in China.

Looking ahead, CGS International maintains its forecast for continued profit growth in the second half of 2025, supported by its strategic initiatives in China and potential re-rating catalysts, including the acquisition of American International Hospital in Vietnam. The company reiterates its target price of S$1.20, reflecting an 11.7% upside from the current price.
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Suntec REIT has announced a 4.6% year-on-year increase in its distributable income for the first half of 2025, reaching S$92.8 million. This growth translates to a distribution per unit (DPU) of 3.155 Singapore cents, marking a 3.7% rise from the previous year. The improvement is attributed to robust performance in its Singapore portfolio and reduced financing costs, although it was partially offset by higher withholding tax provisions in Australia following the loss of Managed Investment Trust status, according to a CGS International report.

The Singapore office segment showed strong results, with a committed occupancy rate of 99% by the end of the first half. Suntec Office experienced a 6.9% rental reversion, whilst Marina Bay Financial Centre Towers 1 and 2, along with One Raffles Quay, saw a 13% increase. Despite macroeconomic uncertainties, Suntec REIT expects rental reversion for the full year to remain consistent with the first half’s levels.

Suntec Mall maintained a high occupancy rate of 98%, with an impressive 18% rent reversion. However, both shopper traffic and tenant sales saw a slight decline of 2% year-on-year. The Suntec Convention Centre reported a 64.4% increase in net property income, driven by a rise in large- and mid-scale events.

Despite the positive results, Suntec REIT maintains a “Hold” rating due to challenges in the Australian and UK office markets, which may hinder vacancy improvements. The target price remains unchanged at S$1.26, with potential risks including interest rate hikes and a prolonged weak macroeconomic outlook.
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Singapore’s real estate investment trusts (REITs) have demonstrated resilience in their latest financial results, with Mapletree Industrial Trust (MINT) and ESR-REIT (EREIT) reporting positive rental reversions, despite broader market challenges, according to a CGS International report. MINT’s first-quarter fiscal year 2026 results showed a distribution per unit (DPU) of 3.27 Singapore cents, aligning with expectations at 24.8% of the full-year forecast. The trust’s revenue and net property income (NPI) saw year-on-year increases, driven by acquisitions in Tokyo and Osaka and positive rental reversions of 8.2% across its Singapore portfolio.

EREIT’s first-half fiscal year 2025 results also met expectations, with a DPU of 11.239 Singapore cents, representing 52% of the full-year forecast. The trust achieved core DPU growth of 8% year-on-year, bolstered by new acquisitions and rental reversions of 9.7%, particularly in logistics and industrial sectors. However, portfolio occupancy dipped slightly to 91.2%.

CapitaLand Ascott Trust (CLAS) reported a 1% year-on-year decline in its first-half fiscal year 2025 DPU to 2.53 Singapore cents, which was broadly in line with expectations. The trust’s revenue and NPI were at 49% and 48% of full-year forecasts, respectively, with gross profit rising 6% year-on-year due to contributions from new properties and renovated assets.

The REIT sector remains overweight, with CGS International analysts optimistic about the potential for re-rating catalysts such as accelerated interest rate declines and robust operating metrics. However, slower-than-expected interest rate cuts pose a downside risk. Current top picks in the sector include Keppel DC REIT and CapitaLand Ascendas REIT, both of which are expected to benefit from these trends.
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The Monetary Authority of Singapore (MAS) announced in its July 2025 Monetary Policy Statement (MPS) that it will maintain the current rate of appreciation of the Singapore dollar nominal effective exchange rate (S$NEER) policy band at an estimated 0.5% per annum. This decision aligns with the consensus among analysts, including those from UOB Global Economics and Markets Research, who anticipated no change in policy.

The MAS highlighted the resilience of both the global and domestic economies, despite ongoing uncertainties related to tariffs. The statement noted that whilst global growth momentum may moderate, Singapore’s domestic growth has exceeded expectations in the first half of 2025, driven by robust construction activity and trade-related services. This performance has led UOB to revise its 2025 growth forecast for Singapore to 2.1%, surpassing the Ministry of Trade and Industry’s official forecast range of 0.0-2.0%.

MAS Managing Director Chia Der Jiun remarked that Singapore’s GDP growth has held up better than anticipated in the first half of the year but is expected to slow in the latter half. The central bank also maintained its full-year core and headline inflation forecasts at 0.5-1.5%, adopting a cautious outlook on inflation risks.

Looking ahead, MAS indicated that it may consider easing policy in the October 2025 MPS or January 2026 MPS if the expected payback effects from front-loading and tariffs lead to a slowdown in growth momentum. The central bank emphasised that it remains prepared to respond to risks to medium-term price stability, with room to adjust the S$NEER within the existing band if necessary.
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The Asia-Pacific (APAC) region experienced a 3% year-on-year increase in deal activity during the first half (H1) of 2025, according to GlobalData. This growth, however, reveals a complex landscape with significant variations across different markets and deal types. India and Japan emerged as standout performers, with India seeing a 12% rise in deal volume and Japan a substantial 25% increase. In contrast, South Korea and Singapore faced declines of approximately 20% and 16% respectively.

GlobalData’s Lead Analyst, Aurojyoti Bose, highlighted the mixed signals across key markets, noting that whilst some countries demonstrated resilience, others faced challenges. “The growth masks underlying shifts in specific countries that warrant closer examination,” Bose commented.

The analysis also showed a 9% increase in mergers and acquisitions (M&A), driven by companies seeking consolidation to enhance operational efficiencies. Conversely, private equity deals fell by 7% and venture financing by 5%, reflecting a cautious investment climate amidst geopolitical tensions.

China’s deal volume remained stable, likely due to regulatory challenges, whilst the downturn in private equity and venture financing suggests investors are reassessing risk profiles. Bose concluded that the surge in M&A activity indicates a renewed appetite for consolidation in a competitive landscape.

The findings underscore the varying degrees of investor confidence across the APAC region, with implications for future investment strategies and market dynamics.
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