Introduction

Singapore’s Real Estate Investment Trusts (REITs) sector is entering a year of transition in 2025. With moderated rate cuts, resilient economic growth, and stable valuations, the sector remains favorable. This detailed analysis provides insights into the REIT market, macroeconomic climate, sub-sector trends, and a deep dive into the top picks recommended by Maybank Research.

Macro Climate and Sector Overview

Singapore’s GDP growth is forecasted to slow from 4% in 2024 to 2.6% in 2025, while inflation is expected to drop from 2.6% to 1.7%. The Monetary Authority of Singapore (MAS) is likely to ease monetary policy, while the US Federal Reserve is projected to cut base rates by 75 basis points. The 3-month SORA rate is expected to decline to 2.65%. These factors create a positive environment for REITs, though global macro uncertainties may necessitate nimble positioning.

Distributions in the REIT sector are expected to stabilize from the second half of 2025, with growth projected at 3.1% in 2026. Key subsectors like commercial, industrial, and hospitality REITs offer opportunities for rotation based on their unique growth drivers and challenges.

Deep Dive into Top Picks

CDL Hospitality Trusts (CDLHT)

CDLHT is Singapore’s first listed hospitality trust with a diversified portfolio of 20 properties valued at SGD 3 billion, including hotels, apartments, and a mall. The trust benefits from its strong sponsor, Millennium & Copthorne Hotels, which owns over 145 hotels globally. CDLHT is poised to benefit from the recovery in visitor arrivals and corporate travel, particularly from China.

Key Metrics:

• DPU Yield: 6.4%
• Price-to-Book Ratio: 0.59x
• Historical Mean P/B Ratio: 1.05x

Risks include higher interest rates, slower-than-expected tourist arrivals, and limited capital recycling. However, CDLHT presents an attractive valuation and is recommended as a BUY.

CapitaLand Integrated Commercial Trust (CICT)

CICT is Singapore’s largest REIT by market capitalization and assets, with over 90% of its revenue derived from local assets. The trust offers a mix of organic growth and stability through positive rent reversions and a long lease expiry profile.

Key Metrics:

• DPU Yield: 5.5%
• Price-to-Book Ratio: 0.94x
• Historical Mean P/B Ratio: 1.18x

Risks include weaker retail sales, structural vacancy in offshore offices, and potential dilution from mergers and acquisitions. CICT is recommended as a BUY for its strong balance sheet and defensive nature.

CapitaLand Ascendas REIT (CLAR)

CLAR is the largest industrial REIT in Singapore, with exposure to high-value industries like tech, logistics, and life sciences. The trust’s diversified asset and tenant base provides stability and growth opportunities.

Key Metrics:

• DPU Yield: 5.7%
• Price-to-Book Ratio: 1.13x
• Historical Mean P/B Ratio: 1.26x

Challenges include vacancy risks in older business parks and valuation pressures on offshore assets. However, CLAR’s strong credit profile and exposure to high-growth sectors make it a BUY.

The Ascott Limited (CLAS)

CLAS is Asia Pacific’s largest hospitality trust, managing over 18,000 units across serviced residences, hotels, and rental housing. It benefits from a strong sponsor, Ascott, with a global footprint and diverse asset mix.

Key Metrics:

• DPU Yield: 6.2%
• Price-to-Book Ratio: 0.79x
• Historical Mean P/B Ratio: 0.86x

Risks include FX volatility, slower recovery in China, and potential challenges in the US student accommodation market. CLAS is recommended as a BUY for its diversified portfolio and active capital recycling.

Far East Hospitality Trust (FEHT)

FEHT is a pure-play Singapore hospitality trust with a mix of hotels and serviced residences. The trust offers stable distributions through its master lease structure and a lowly geared balance sheet.

Key Metrics:

• DPU Yield: 5.9%
• Price-to-Book Ratio: 0.66x
• Historical Mean P/B Ratio: 0.77x

Risks include sensitivity to interest rate movements and limited opportunities for accretive acquisitions. FEHT is recommended as a BUY for its stable profile and growth potential.

Lendlease Global Commercial REIT (LREIT)

LREIT is a Singapore-centric commercial REIT with high-yielding retail malls and master-leased office assets. The trust benefits from a supportive sponsor and secured debt refinancing.

Key Metrics:

• DPU Yield: 6.9%
• Price-to-Book Ratio: 0.74x
• Historical Mean P/B Ratio: 0.87x

Risks include weaker retail sales and valuation pressures on offshore office assets. LREIT is recommended as a BUY for its attractive valuation and high yield.

Mapletree Industrial Trust (MINT)

MINT is a dominant industrial landlord in Singapore with a mandate to invest in data centers globally. Its portfolio is well-diversified across Singapore, the US, and Japan.

Key Metrics:

• DPU Yield: 6.0%
• Price-to-Book Ratio: 1.22x
• Historical Mean P/B Ratio: 1.32x

Risks include vacancy in US data centers and higher utilities costs. MINT is recommended as a BUY for its robust portfolio and growth potential.

Mapletree Logistics Trust (MLT)

MLT is a leading logistics landlord with a Pan-Asia presence. It benefits from structural tailwinds like e-commerce growth and shifting supply chains.

Key Metrics:

• DPU Yield: 6.6%
• Price-to-Book Ratio: 0.87x
• Historical Mean P/B Ratio: 1.13x

Challenges include FX volatility and potential headwinds from new supply. MLT is recommended as a BUY for its steady execution and regional network.

OUE Commercial REIT (OUEREIT)

OUEREIT is a high-yielding pure-play Singapore REIT with a mix of CBD offices and hotels. The trust has improved its credit profile significantly and is actively recycling capital.

Key Metrics:

• DPU Yield: 6.9%
• Price-to-Book Ratio: 0.48x
• Historical Mean P/B Ratio: 0.65x

Risks include slower tourist arrivals and potential valuation pressures. OUEREIT is recommended as a BUY for its attractive valuation and high yield.

Conclusion

Singapore’s REIT sector offers a mix of opportunities and challenges in 2025. With easing interest rates and stable macroeconomic conditions, the sector is poised for growth. The recommended picks by Maybank Research—CDLHT, CICT, CLAR, CLAS, FEHT, LREIT, MINT, MLT, and OUEREIT—combine quality and value, making them attractive investments for long-term growth and stability.