Positive Rental Reversions Support S-REITs' Recent Resilience
As of Nov 5, most real estate investment trusts in Singapore (S-REITs) have released their financial results or business updates for the period ended Sep 30. While positive rental reversions emerged as a dominant theme across the sector, distributions remained mixed, as portfolio occupancy, currency fluctuations, and prevailing financing costs influenced distribution per unit (DPU) performance.
The top five most traded S-REITs year-to-date (YTD), namely $CapLand IntCom T(C38U.SI)$ (CICT), $CapLand Ascendas REIT(A17U.SI)$ (CLAR), $Keppel DC Reit(AJBU.SI)$ (KDC REIT), $Mapletree Log Tr(M44U.SI)$ (MLT) and $Mapletree PanAsia Com Tr(N2IU.SI)$ (MPACT), all reported positive rental reversions. Among these, CICT, KDC REIT, and MLT recorded increases in net property income (NPI) and/or DPU.
1. $CapLand IntCom T(C38U.SI)$
In its 3QFY26 business update, CICT reported that its 9M2026 NPI increased 10.4% year-on-year to S$965.4 million. This was largely driven by contributions from Paragon, Gallileo and CapitaSpring’s step-up acquisition, partially offset by the divestments of Bukit Panjang Plaza and Asia Square Tower 2. Rental reversions for 9M2026 stood at 4.6% and 7.1% for its retail and office portfolios, respectively.
2. $CapLand Ascendas REIT(A17U.SI)$
CLAR recorded a positive rental reversion of 9.0% for leases renewed in the first nine months of 2026. Stable leasing activity sustained a high portfolio occupancy rate of 90.1%, with the Singapore properties tracking above the industrial average.
During the period, CLAR completed close to S$1.8 billion in accretive acquisitions. Its ongoing portfolio rejuvenation strategy also saw the divestment of three Singapore properties for S$281.7 million, representing a 25% premium to independent market valuations. These divestments are projected to raise its portfolio occupancy to 91.5% on a pro forma basis.
3. $Keppel DC Reit(AJBU.SI)$
KDC REIT reported one of the highest rental reversions in the sector at 14% for secured leases (excluding renewals yet to commence). This was accompanied by strong growth in distributable income and DPU, which rose 16.7% and 11.7% year-on-year, respectively. The Manager attributed growth to stronger operations, acquisitions and increased effective interests in Keppel DC Singapore 3 and 4, partly offset by acquisition-related finance costs and more units in issue.
4. $Mapletree Log Tr(M44U.SI)$
MLT maintained a positive average rental reversion of 2.1% (4.2% excluding its China portfolio) for the second quarter of FY26/27. Its Singapore leases recorded a 5.3% increase, while its China portfolio recorded a 1.7% decline. Gross revenue and NPI grew by 1.4% and 1.0% year-on-year, respectively, driven by contributions from the Singapore redevelopment project and India acquisition, as well as organic growth from the existing portfolio, partly offset by divestments.
5. $Mapletree PanAsia Com Tr(N2IU.SI)$
MPACT secured a positive rental reversion of 3.5% for leases expiring in FY26/27, with positive rental reversions in Singapore offset by negative rental reversions in Hong Kong and China. Its first-half FY26/27 NPI decreased by 6.5%, weighed down by softer overseas contributions, the absence of contributions from divested properties and a stronger SGD against the Japanese yen and Hong Kong dollar.
Aside from the five most traded S-REITs, the three strongest-performing S-REITs in October were $Acro HTrust USD(XZL.SI)$ (ACRO-HT), $Frasers Cpt Tr(J69U.SI)$ (FCT), and $Suntec Reit(T82U.SI)$ .
6. $Acro HTrust USD(XZL.SI)$
ACRO-HT recorded a stronger third quarter, with same-store NPI rising 6.6% year-on-year, supported by solid average daily rate, occupancy growth and continued cost discipline. However, for 9M2026, same-store NPI edged down 1.5% due to the loss of contributions from divested hotels and higher utility and insurance costs, against a backdrop of elevated energy prices and rising interest rates.
7. $Frasers Cpt Tr(J69U.SI)$
Elsewhere, FCT achieved a DPU of 12.35% for FY26, a new high since its listing in 2006, underpinned by strong operating performance.
FCT’s NPI grew 15.7%, driven by the acquisition of Northpoint City South Wing and higher passing rents across most malls. Retail portfolio committed occupancy, excluding NEX and White Sands, was 99.7% as at Sep 30, while FY26 retail portfolio rental reversion, excluding NEX, Hougang Mall and White Sands, was 6.6%.
The Manager anticipates continued resilience in Singapore’s suburban retail market, with targeted asset enhancement initiatives at Hougang Mall, NEX and Causeway Point expected to support further growth.
8. $Suntec Reit(T82U.SI)$
Suntec REIT reported a 13.4% year-on-year increase in its DPU to 2.017 cents, led by stronger operational performance across its Singapore office and retail portfolios and lower financing costs. The REIT recorded 3QFY26 rental reversions of 7.3% for its Singapore office portfolio and 11.2% for its Singapore retail portfolio.
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KDC REIT stands out: 14% rental reversions accompanied by 16.7% growth in distributable income and 11.7% DPU growth, signalling genuine momentum. FCT also looks resilient, with near-full suburban mall occupancy, 6.6% rental reversions and record FY26 DPU. CICT benefits from acquisitions and stronger NPI, while lower financing costs helped lift Suntec’s DPU.
The weaker signal comes from MPACT, where rental growth could not offset overseas weakness and FX headwinds. MLT’s China exposure also diluted rental growth.
My view: favour REITs converting rent increases into DPU, not simply reporting higher rents. Balance-sheet strength and sustainable funding costs remain decisive, as refinancing risks remain uneven across the sector.
@SGX_Stars