Singapore REIT Roundup: Navigating the Evolving Landscape

OCBC Investment Research 24 March 2025
Singapore’s real estate investment trust (REIT) sector has been a dynamic and evolving landscape, with various REITs making strategic moves to position themselves for growth. In this comprehensive report, we delve into the latest developments and provide in-depth analysis of the key players in the market.

Starhill Global REIT Secures Sustainability-Linked Financing

Starhill Global REIT (SGREIT) has entered into a five-year unsecured facility agreement with a group of banks. This includes SGD300 million in sustainability-linked term loan facilities, which will be used to refinance existing debt and provide additional working capital. The REIT has also secured SGD300 million in sustainability-linked revolving credit facilities, replacing its existing committed revolving credit facilities. These transactions are expected to strengthen SGREIT’s financial position without materially impacting its gearing.

Stoneweg European REIT Commences Unit Buyback

Stoneweg European REIT (SERT) has initiated a unit buyback program, funded by recent asset sales. The buyback mandate was approved by unitholders at the REIT’s annual general meeting in 2024 and is seen as a flexible, cost-effective capital management tool to enhance returns and net asset value (NAV) per unit.

Suntec REIT Raises Funds through Bond Issuance

Suntec REIT (Suntec) has priced SGD175 million worth of notes due in 2031, bearing a fixed interest rate of 3.4% per annum. The REIT has also appointed Mr. Matthew James Lawson as a non-executive director, effective 21 March 2025.

Mapletree Logistics Trust Divests Property, Expands Loan Facility

Mapletree Logistics Trust (MLT) has completed the divestment of a property in Shah Alam, Malaysia, reducing its portfolio to 180 properties with a total assets under management (AUM) of SGD13.3 billion. Additionally, the REIT has entered into a new loan agreement with conditions similar to its existing facilities and notes.

Mapletree Pan Asia Commercial Trust Secures Financing

Mapletree Pan Asia Commercial Trust (MPACT) has entered into a HKD600 million facility agreement, further strengthening its financial capabilities.

Keppel DC REIT Expands Credit Facility

Keppel DC REIT (KDCREIT) has secured a EUR50 million revolving credit facility, providing additional liquidity and flexibility.

Peer Comparison and Performance Highlights

The FTSE ST REIT Index was up 0.1% week-on-week, while the broader Straits Times Index (STI) declined by 2.4% over the same period.
The 12-month forward price-to-book (P/B) ratio of the iEdge S-REIT Index stood at 0.84x, compared to the 8-year average of 0.98x. The 12-month forward distribution yield was 6.4%, slightly above the 8-year average of 6.1%.

Sector and Company Highlights

Office Sector

– IREIT Global, Keppel REIT, Manulife US REIT, OUE REIT, Suntec REIT, Keppel Pacific Oak US REIT, Prime US REIT, and Elite UK REIT

Retail Sector

– BHG Retail REIT, CapitaLand Integrated Commercial Trust, CapitaLand China Trust, Frasers Centrepoint Trust, Lendlease Global Commercial REIT, Lippo Malls Indonesia Retail Trust, Mapletree Pan Asia Commercial Trust, Paragon REIT, Starhill Global REIT, Sasseur REIT, and United Hampshire US REIT

Industrial Sector

– CapitaLand Ascendas REIT, EC World REIT, Frasers Logistics & Commercial Trust, Mapletree Industrial Trust, Mapletree Logistics Trust, Sabana REIT, and Daiwa House Logistics Trust

Hospitality Sector

– Acrophyte Hospitality Trust, CapitaLand Ascott Trust, CDL Hospitality Trusts, Far East Hospitality Trust, and Frasers Hospitality Trust

Healthcare Sector

– First REIT and Parkway Life REIT

Data Centre Sector

– Keppel DC REIT and Digital Core REIT

Other Sector

– Stoneweg European REIT
The report provides a comprehensive overview of the financial performance, distribution details, and geographical breakdown of the asset portfolios for the various REITs covered.
OCBC Investment Research 24 March 2025