Lendlease Global Commercial REIT (LREIT)

Lendlease Global Commercial REIT (LREIT) saw mixed performance in the first half of FY2025. Key highlights include a decline in revenue and net property income (NPI) by 13.6% and 19.8% year-on-year, respectively. This dip was due to the absence of supplementary rent from the lease restructure of Sky Complex, offset partially by higher contributions from Singaporean properties.

The REIT’s distribution per unit (DPU) fell 14.3% year-on-year to 1.8 Singapore cents, attributed to higher interest expenses and a larger unit base from the dividend reinvestment plan. Despite operational challenges, overall portfolio occupancy improved to 92.3%, with retail portfolio occupancy reaching a high of 99.9%. Retail tenant sales declined by 5.2% year-on-year due to increased outbound travel and asset enhancement works at 313@Somerset.

Rental reversions were robust, posting a 10.7% increase, driven by strong performance at Jem (low teens) and 313@Somerset (high single digits). Management anticipates high single-digit retail rental reversions for FY2025. Additionally, the committed occupancy at Sky Complex Building 3 rose to 31% from 8.1% in March 2024, although cash contributions from these leases are expected to commence only from FY2026 after the rent-free period. Construction of the multifunctional event space adjacent to 313@Somerset is underway and scheduled for completion in the second half of FY2026.

LREIT’s gearing remained stable at 40.8%, with an average cost of debt dipping to 3.57%. However, the adjusted interest coverage ratio slid to 1.5x during 1HFY2025. Management is exploring refinancing options for its existing S\$200 million perpetual securities, including asset divestments and new issuance of perpetuals. The REIT is also in talks with potential investors for the sale of Jem office.

Recommendation: Add
Target Price: S\$0.69
Dividend Yield: 7.2%

CapitaLand Ascott Trust (CLAS SP)

CapitaLand Ascott Trust is recommended with an “Add” rating, showcasing a target price of S\$1.18. With a market capitalization of US\$2,476 million, the REIT reported dividend yields of 6.9%, 7.1%, and 7.8% for FY2024, FY2025, and FY2026, respectively. The REIT’s robust performance reflects its strong foothold in the hospitality sector, a favorable market position, and a stable outlook for future growth.

CDL Hospitality Trust (CDREIT SP)

CDL Hospitality Trust also received an “Add” recommendation with a target price of S\$1.07. The REIT, with a market capitalization of US\$806 million, is expected to deliver dividend yields of 6.2%, 6.8%, and 7.3% for FY2024, FY2025, and FY2026. This reflects its resilience and consistent performance in the hospitality domain.

Far East Hospitality Trust (FEHT SP)

Far East Hospitality Trust was rated an “Add” with a target price of S\$0.78. With a market capitalization of US\$904 million, the REIT demonstrated stability, offering an attractive dividend yield of 7.0% across FY2024, FY2025, and FY2026. This consistency underlines its strong operational framework and steady demand in the hospitality industry.

Frasers Hospitality Trust (FHT SP)

Frasers Hospitality Trust, although not rated (NR), showed a solid presence with a market capitalization of US\$773 million. It offered dividend yields of 4.1%, 4.4%, and 4.8% for FY2024, FY2025, and FY2026, respectively, highlighting its enduring appeal in the hospitality sector.

AIMS AMP Capital Industrial REIT (AAREIT SP)

AIMS AMP Capital Industrial REIT was not rated but exhibited a market capitalization of US\$754 million. It projected dividend yields of 7.4%, 7.3%, and 7.5% for FY2024, FY2025, and FY2026, respectively. These figures underscore its robust performance in the industrial real estate sector.

CapitaLand Ascendas REIT (CLAR SP)

CapitaLand Ascendas REIT received an “Add” recommendation, with a target price of S\$3.23. With a market capitalization of US\$8,416 million, the REIT showcased dividend yields of 6.0%, 6.1%, and 6.3% for FY2024, FY2025, and FY2026, further solidifying its position as a market leader in industrial real estate.

ESR-REIT (EREIT SP)

ESR-REIT was rated as an “Add,” with a target price of S\$0.36. The REIT, with a market capitalization of US\$1,551 million, offered attractive dividend yields of 8.2%, 8.4%, and 8.7% for FY2024, FY2025, and FY2026, showcasing its strength in the industrial segment.

Frasers Logistics & Commercial Trust (FLT SP)

Frasers Logistics & Commercial Trust received an “Add” rating with a target price of S\$1.35. With a market capitalization of US\$2,454 million, the REIT presented robust dividend yields of 7.7%, 7.6%, and 7.8% for FY2024, FY2025, and FY2026, reflecting strong operational metrics in logistics and commercial properties.

Keppel DC REIT (KDCREIT SP)

Keppel DC REIT, with a target price of S\$2.48 and an “Add” rating, has a market capitalization of US\$3,717 million. Offering dividend yields of 4.2%, 4.4%, and 4.5% for FY2024, FY2025, and FY2026, the REIT highlights its growth potential in the data center sector.

Mapletree Industrial Trust (MINT SP)

Mapletree Industrial Trust was rated “Add,” with a target price of S\$2.82. With a market capitalization of US\$4,644 million, the REIT showcased dividend yields of 6.1%, 6.3%, and 6.4% for FY2024, FY2025, and FY2026, underscoring its stronghold in the industrial market.

Mapletree Logistics Trust (MLT SP)

Mapletree Logistics Trust received an “Add” rating and a target price of S\$1.73. With a market capitalization of US\$4,724 million, the REIT delivered dividend yields of 7.1%, 6.4%, and 6.0% for FY2024, FY2025, and FY2026, emphasizing its leadership in the logistics sector.