S-REITs with exposure to Singapore-based office properties
Trust Name | Stock Code | Market Cap S$M | Dividend Yield | PB Ratio | YTD Total Returns |
CapitaLand Integrated Commercial Trust | C38U | 14,159 | 5.6% | 0.91 | 0.5% |
Mapletree Pan Asia Commercial Trust | N2IU | 6,421 | 7.0% | 0.70 | 0.8% |
Suntec REIT | T82U | 3,491 | 5.7% | 0.58 | 1.7% |
Keppel REIT | K71U | 3,305 | 6.7% | 0.68 | -1.2% |
OUE REIT | TS0U | 1,647 | 7.2% | 0.52 | 5.3% |
Lendlease Global Commercial REIT | JYEU | 1,320 | 6.9% | 0.59 | -0.9% |
Source: Company announcements, Bloomberg (data as of 28 Jan 2025). Dividend yields are as of S-REITs & Property Trusts Chartbook.
According to data from JLL, leasing activities in quality office developments in Singapore improved in 4Q 2024. Rental and capital values are expected to stay stable in the first half of 2025 and recover in the latter half of the year.
CBRE predicts a modest rise in Core CBD Grade A rents in 2025 due to tentative demand, limited supply, and continued flight to quality.
We preview this earnings season as four of six Singapore-based office S-REITs have reported.
Keppel REIT reported stronger FY2024 property income and net property income (NPI) increasing by 12.2 per cent and 10.7 per cent year-on-year respectively. This growth was driven by better performance at Ocean Financial Centre, T Tower and KR Ginza II, as well as contributions from 2 Blue Street and 255 George Street.
Keppel REIT achieved a rental reversion of 13.2 per cent in FY2024, up from 9.9 per cent in FY2023, and maintained a portfolio committed occupancy of 97.9 per cent as at 31 December 2024, an improvement from 97.1 per cent in FY2023.
Despite a robust operational performance, distributable income and distribution per unit (DPU) have both dipped, due to higher borrowing costs. 2H 2024 DPU was 2.80 cents with FY2024 DPU at 5.60 cents.
Looking ahead, Keppel REIT aims to capitalise on the flight-to-quality trend, ensuring sustainable long-term returns for unitholders amidst a global growth forecast of 3.3 per cent in 2025 and stable local office rental market conditions.
Mapletree Pan Asia Commercial Trust (MPACT) reported lower 3Q FY24/25 gross revenue and NPI decreasing by 7.4 per cent and 8.5 per cent year-on-year respectively, due to the divestment of Mapletree Anson and lower overseas contributions dampened by the strong Singapore dollar. However, its Singapore properties showed resilience, with a 0.2 per cent year-on-year revenue increase, led by VivoCity’s robust performance. Its 3Q FY24/25 DPU dipped 9.1 per cent to 2.00 Singapore cents.
MPACT’s Singapore portfolio demonstrated strength, with rental reversions ranging from 2.0 per cent at Mapletree Business City to 16.9 per cent at VivoCity. As of 31 December 2024, the portfolio was 90.0 per cent committed, with increases across most markets except China and South Korea. MPACT’s core stability remains anchored by Singapore’s dominant position.
OUE REIT achieved a 3.7 per cent year-on-year revenue growth for FY2024 but a 0.4 per cent dip in NPI. Revenue for 2H 2024 increased by 1.7 per cent year-on-year mainly attributable to the stable operational performance of its Singapore office portfolio and the successful asset enhancement of Crowne Plaza Changi Airport which saw its RevPAR grow 25.5 per cent.
Amount available for distribution for 2H 2024 grew by 3.7 per cent year-on-year and including the release of the remaining capital distribution from the 50 per cent divestment of OUE Bayfront, DPU rose 8.7 per cent year-on-year to 1.13 Singapore cents.
OUE REIT’s Singapore office portfolio maintained a 94.6 per cent occupancy rate as at 31 December 2024 with full year positive rent reversion of 10.7 per cent. Following the divestment of non-core asset Lippo Plaza Shanghai, OUE REIT’s assets are now exclusively in Singapore.
Suntec REIT reported a 1.6 per cent year-on-year decline in distributable income and 2.3 per cent lower DPU for FY2024. Suntec REIT noted that its Singapore office and retail portfolios continued to perform and achieved strong rent reversions across all the quarters of the year. For 2025, positive rent reversion is expected to be modest in the range of 1 to 5 per cent, supported by healthy occupancy.
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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Chart | Stock Name | Last | Change | Volume |
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Created by SGX | Feb 10, 2025
Created by SGX | Jan 27, 2025