Singapore’s Industrial REITs are navigating global uncertainties, yet growth drivers in logistics and data centers continue to underpin their long-term appeal. Here’s how the sector is performing, what’s driving returns, and where opportunities may lie for investors.
Singapore’s Industrial REITs face near-term challenges as global uncertainties, trade tensions, and rising supply put pressure on rental growth in 2025.
Yet, demand for logistics assets and data centres remains robust, driven by e-commerce expansion, digitalisation, and AI adoption. Selective exposure to life sciences and R&D-driven business parks provides additional long-term resilience. REITs with overseas portfolios can tap growth in markets such as the US, Australia, and India, though they also face currency and regional risks.
Despite these headwinds, Singapore remains one of Asia’s most established REIT hubs, with Industrial S-REITs forming a cornerstone sector supported by the city-state’s strategic position in logistics, manufacturing, and technology.
To appreciate their resilience and long-term potential, it’s worth exploring their market size, growth trends, and performance outlook.
S-REIT Market Size And Growth Trends
Source: REITAS, Syfe Research; as of April 2025
Singapore hosts the largest REIT market in Asia (excluding Japan), with 39 listed S-REITs and Property Trusts and a combined market capitalisation of about S$80 billion, making it a fast-rising global REIT hub.
S-REITs play a key role in Singapore’s capital market, accounting for around 10% of the Singapore Exchange’s total market capitalisation. More than 90% of S-REITs own assets outside Singapore, offering investors diversified exposure across Asia Pacific, South Asia, Europe, and the US.
Within this landscape, Industrial S-REITs are a major subsector, representing some of the largest and most actively traded names. They have grown into a cornerstone of the sector, benefiting from Singapore’s position as a logistics and manufacturing hub, while also leveraging overseas portfolios to tap growth from global supply chains and e-commerce demand.
Industrial REITs Performance at a Glance
Distribution Yields And Total Returns
Singapore Industrial REIT yields currently range from 5.7%–9.5% with highly diversified players with a global portfolio of assets at the lower end, given their relatively lower risk profile. Over the last three years, the biggest and well-diversified player in the sub-sector averaged 4.2% total returns on an annualised basis.
Financial Performance and Health of Industrial REITs
The table below summarises key operational and financial metrics for major Singapore Industrial REITs, highlighting their status as of end-Q2 2025.
| Reversions | Gearing | Port Value (S$ mn) | WALE * | WACD ** | NAV | ICR # | |
| CapitaLand Ascendas REIT | +8% (2Q 2025) | 37.4% | 16,800 | 3.7 | 3.70% | 2.19 | 3.7 |
| Mapletree Logistics Trust | +2.1% (1Q FY25/26) | 41.2% | 13,040 | 2.7 | 2.70% | 1.26 | 2.9 |
| Mapletree Industrial Trust | +8.2% (1Q FY25/26) | 42.24% | 9,000 | 4.5 | 3.10% | 1.69 | 3.9 |
| ESR-REIT | +9.7% (1H 2025) | 42.60% | 5,518 | 4.1 | 3.47% | 2.66 | 2.4 |
| AIMS APAC REIT | +5.4% (1Q FY25/26) | 28.90% | 2,100 | 4.4 | 4.30% | 1.22 | 2.4 |
| Sabana Industrial REIT | +8.9% (2Q 2025) | 37.70% | 913 | 2.8 | 4.47% | 0.5 | 3.2 |
Note:
* WALE – Weighted Average Lease Expiry, metric used to measure the tenancy risk of a property.
** WACD – Weighted Average Cost of Debt.
# MAS updated Code on Collective Investment Schemes for leverage requirements for the REIT sector. All REITs are subject to a minimum Interest Coverage Ratio (ICR) threshold of 1.5 times and an aggregate leverage limit of 50%. ICR is calculated by dividing trailing 12 months EBITDA over the trailing 12 months consolidated interest expenses (including any distributions on perpetual securities).
Key Drivers of Performance
Strong Logistics and E-commerce Demand
The e-commerce boom across Southeast Asia has been a major growth driver for Singapore’s Industrial REITs, especially those with logistics-focused portfolios. Strong demand for warehouses and last-mile facilities has boosted occupancy and rental growth. Mapletree Logistics Trust and ESR-LOGOS REIT have led this trend with their extensive exposure to e-commerce tenants, while REITs with more traditional industrial assets have seen slower gains, underscoring the importance of tenant mix and asset quality.
Data Centres and High-Spec Industrials as Growth Drivers
Rising demand for data centres and high-spec industrial facilities has become a key growth driver for Singapore’s Industrial REITs. These assets serve tech, cloud, and life sciences sectors that require specialised infrastructure and command premium rents. CapitaLand Ascendas REIT and Mapletree Industrial Trust have benefited most, leveraging diversified, future-ready portfolios across business parks and North American data centres to maintain strong occupancy, steady rental growth, and resilient long-term performance.
Impact of Supply Dynamics
Supply dynamics play a critical role in shaping the performance outlook of Singapore’s Industrial REITs. Periodic releases of industrial land and new developments can increase market competition, putting downward pressure on rental rates and occupancy for existing assets.
Conversely, tight supply conditions, especially for high-quality or strategically located properties, enable REITs to command premium rents, achieve higher lease renewal rates, and maintain strong occupancy, supporting stable distributable income. In the near term, supply pressures in select subsegments have impacted occupancy and rental reversions, but in the long term, Singapore’s industrial land scarcity and controlled supply could support occupancy and rental resilience.
KEY PLAYERS IN SINGAPORE’S INDUSTRIAL REITS SECTOR
| Sector Exposure | ||||||
| Company | Ticker | By Portfolio Value / GRI* | Industrial | Logistics | Data Centres | Business Space** |
| CapitaLand Ascendas REIT | A17U | By Portfolio Value | 20.0% | 26.0% | 9.0% | 45.0% |
| Mapletree Logistics Trust | M44U | By GRI | 100% | |||
| Mapletree Industrial Trust | ME8U | By Portfolio Value | 22.2% | 0.0% | 54.8% | 23.0% |
| ESR-REIT | 9A4U | By Portfolio Value | 38.9% | 46.8% | 0.0% | 14.3% |
| AIMS APAC REIT | O5RU | BY GRI | 27.4% | 48.6% | 0.0% | 24.0% |
| Sabana Industrial REIT | M1GU | BY GRI | 65.4% | 34.6% | 0.0% | 0.0% |
Source: Company Reports, Syfe Research
*GRI refers to Gross Rental Income; Business Space includes Life Sciences and High-tech buildings; Logistics includes Warehouses.
**Business Space includes Life Sciences and High tech buildings; Logistics include Warehouse; Industrial refers to General Industrial
Singapore’s Industrial REITs can be grouped into several sub-categories:
Business Parks & High-Spec Industrial REITs are focused on campus-style business parks, high-specification industrial buildings, R&D facilities, and data centres with a tenant base consisting predominantly of tech firms, life sciences, MNCs, and knowledge-based industries.
Logistics & Warehousing REITs are focused on modern logistics facilities, distribution centers, and cold storage with a tenant base consisting predominantly of e-commerce players, 3PLs, FMCG, trade, and distribution.
Data centre REITs are focused on providing specialised infrastructure requiring high power capacity, and reliable connectivity with a tenant base of tech, cloud computing companies.
General Industrial / Multi-Tenant REITs are focused on traditional flatted factories, light industrial, and general-purpose industrial buildings with a tenant base consisting predominantly of SMEs, manufacturing, and engineering firms.
Why Invest in Singapore Industrial REITs
Singapore’s Industrial REITs form a key pillar of the local market, providing stable income through assets that support manufacturing, logistics, and data infrastructure. With portfolios spanning warehouses, factories, and data centres, they benefit from long-term trends in e-commerce and digitalisation. Many have also expanded overseas, offering investors broader global exposure.
1. Structural Demand Trends
The boom in e-commerce and logistics is driving strong demand for warehouses and last-mile distribution centres in Singapore, benefiting REITs with modern, well-located assets. Similarly, high-specification facilities like data centres are supported by growing digitalisation and cloud adoption. REITs with greater exposure to logistics and digital infrastructure are thus better positioned to tap into these long-term growth trends.
2. Defensive long-term income streams
Singapore’s Industrial REITs provide investors with exposure to essential infrastructure while delivering steady distributions and growth potential through asset enhancement and overseas expansion; distribution yields are in the range of 5.7%–9.5%. The high-spec industrial and data centre segments provide defensive, long-term income streams, as tenants from technology, cloud computing, life sciences, and advanced manufacturing sectors are willing to pay premium rents for specialised facilities.
3. Relatively better occupancy and rental resilience
Singapore’s industrial land scarcity and controlled supply support occupancy and rental resilience, reducing downside risk compared with other real estate sectors. Leading Industrial S-REITs have a portfolio occupancy of upwards of 90%. In the near to medium term, however, supply-side pressure exists in select subsegments as the incoming supply of new warehouse and business park spaces in 2025 is expected to surge to levels above their respective ten-year historical averages.
4. Diversification option
Industrial REITS offer diversification and resilience against economic cycles; for example, logistics and high-spec industrials are often less sensitive compared to retail or office market swings, while overseas expansion provides additional growth and diversification avenues.
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