Diversified real estate investment trusts (S-Reits) continue to anchor portfolio resilience in Singapore, maintaining strong operating performance into 2024. These Reits, which span multiple sectors such as office, retail, industrial, and hospitality, now make up more than a quarter of actively traded S-Reits on the market. Investors seeking broad exposure and sectoral risk mitigation have favored these diversified portfolios.
CapitaLand Integrated Commercial Trust (CICT), Singapore’s largest S-Reit, has gained 9.3% year-to-date as of Mar 13, ranking third on the iEdge S-Reit Index. CICT reported FY2024 net property income growth of 3.4% to S$1.2 billion and a 1.2% rise in distribution per unit to S$0.1088. This was supported by stronger rental income and lower expenses, despite asset divestments and enhancement works. All CICT’s segments – retail, office, and integrated developments – saw occupancy improvements in Q4 2024, with the trust maintaining a disciplined, Singapore-centric investment approach.
Mapletree Pan Asia Commercial Trust (MPACT) and Frasers Logistics & Commercial Trust also recorded gains of 2.5% and 2.3%, respectively. MPACT noted that steady Singapore asset performance helped offset overseas challenges, with VivoCity’s growth standing out despite ongoing asset enhancement initiatives.
Other notable diversified Reits outside the STI include Suntec Reit, OUE Reit, Lendlease Global Commercial Reit, CapitaLand China Trust, CapitaLand India Trust, IReit Global, and Stoneweg European Reit.
OUE Reit, in particular, posted FY2024 revenue of S$295.5 million, up 3.7% year-on-year. The Reit’s office portfolio maintained a healthy 94.6% committed occupancy with a 10.7% rental reversion. Meanwhile, its hospitality segment surged 8.9% to S$105.9 million, buoyed by a strong concerts and MICE (meetings, incentives, conferences, and exhibitions) pipeline and rising visitor arrivals.
Looking ahead, OUE Reit aims to boost hospitality’s revenue contribution from under 35% to 40%, while eyeing expansion opportunities in Melbourne and Hong Kong.
As of Mar 13, diversified S-Reits offered an average distribution yield of 7.6%, outpacing the broader S-Reit market. Their average price-to-book ratio stands at 0.7, slightly below the market average of 0.8, signaling continued investor interest in resilient, diversified plays.
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