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.
“`
