Industrial REITs listed on SGX
Name | Stock Code | Market Cap (S$B) | 12-Month Distribution Yield (%) | P/B Ratio |
CapitaLand Ascendas REIT | A17U | 11.35 | 5.8 | 1.1 |
Mapletree Logistics Trust | M44U | 6.37 | 6.6 | 0.9 |
Mapletree Industrial Trust | ME8U | 6.29 | 6.1 | 1.2 |
ESR REIT | J91U | 2.09 | 8.2 | 0.9 |
AIMS APAC REIT | O5RU | 1.03 | 7.4 | 1.0 |
Sabana Industrial REIT | M1GU | 0.43 | 7.5 | 0.8 |
Daiwa House Logistics Trust | DHLU | 0.41 | 8.6 | 0.8 |
Source: Bloomberg, company filings, data as of Jan 23, 2025
Singapore real estate investment trusts (S-REITs) with industrial assets have delivered a resilient performance with continued positive rental reversions as managers stay active in their lease and asset management.
Of the seven actively traded industrial S-REITs, four have announced their earnings in the past week, and all have reported positive rental reversions for their portfolios in the latest reporting period ended 31 December 2024.
Sabana Industrial REIT reported positive rental reversion of 27.1 per cent for 4Q 2024, while its full year rental reversion rose to 20.6 per cent, its fourth consecutive year of double-digit positive rental reversion.
The REIT – which owns a portfolio of 18 Singapore assets – had 75 new and renewed leases concluded in FY24 totaling 911,707 sq ft.
Elsewhere, Mapletree Industrial Trust reported a weighted average rental reversion rate of around 9.8 per cent across all property segments in Singapore for its third quarter. The average rental rate of its Singapore portfolio increased to S$2.28 per square foot per month in 3Q FY25, up from S$2.26 in the previous quarter.
Similarly, Mapletree Logistics Trust also reported positive rental reversion of 3.4 per cent for its portfolio its third quarter, with positive rental reversions in all markets except China, which remained challenging with negative rental reversions.
Excluding China, portfolio rental reversions would have been 5.4 per cent in 3Q FY25, an improvement from the 3.6 per cent a quarter earlier.
ESR REIT reported positive rental reversion of 10.3 per cent for its full year FY24, with logistics and high-spec industrial assets outperforming general industrial and business park assets. The manager expects new economy sectors to lead positive rental reversions albeit at a slower pace.
According to JTC data, industrial rents in Singapore rose 3.5 per cent in 2024, a decline from the 8.9 per cent increase in 2023, and representing the slowest pace of increase since 2021.
S-REITs’ managers have noted that the outlook is less certain, as macro risks such as trade tensions and slower pace of rate cuts could dent demand for industrial space. The supply of industrial space is also expected to rise in 2025, with around 1.2 million sq m of new space expected to be completed.
But industry expectations are still for industrial properties’ occupancy and rental rates to remain stable in 2025.
Cushman & Wakefield anticipates largely steady rental growth for most industrial submarkets of around 2 to 3 per cent year on year, apart from suburban business parks, which are expected to see no growth in rents, given a supply glut.
The property consultancy said in its Singapore Market Outlook 2025 report that industrial rental growth is expected to moderate, but many industrial properties could still see significant positive rental reversions as their leases come up for renewal. This is largely due to robust industrial rental growth in recent years, with overall industrial rents growing by over a fifth since 2019.
Other S-REITs in the industrial subsector – AIMS APAC REIT, CapitaLand Ascendas REIT and Daiwa House Logistics Trust – are scheduled to report their earnings in the coming weeks.
For more research and information on Singapore’s REIT sector, visit sgx.com/research-education/sectors for the SREITs & Property Trusts Chartbook.
REIT Watch is a regular column on The Business Times, read the original version.
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