The Singapore REIT (S-REIT) sector delivered a steady performance in the first half of 2025, demonstrating resilience despite global economic uncertainty and still-elevated interest rates.
As of 30 June, the iEdge S-REIT Leaders Index has held steady since the start of the year and, in a dramatic reversal, gained over 11.7% since the start of April. Out of the 30 constituents in the index, more than half posted positive total returns, with the top five performers delivering double-digit gains ranging from 10% to over 21% in total return.
Fundamentally, many outperformers reported robust operating results, supported by high occupancies, positive rental reversions, and contributions from acquisitions or asset enhancements.
Valuations remain attractive:
- The sector’s price-to-book ratio is below 0.8 times, under its 10-year average of 1.0, indicating potential value opportunities.
- As of end-May, the TTM dividend yield for the iEdge S-REITs Leaders Index stood at 6%, providing a yield spread of nearly four percentage points over 10-year Singapore Government Bonds.
Investor flows showed mixed sentiment:
- Retail investors were net buyers, with net inflows of about S$400 million.
- Institutional investors, however, were net sellers, registering net outflows of over S$500 million for H1 — though this reversed slightly towards late June.
Interest rate outlook:
While the US Federal Reserve has yet to cut rates in 2025, expectations are for potential rate cuts later in the year. Domestically, Singapore’s three-month compounded SORA declined from 3.02% at the start of January to 2.08% by end-June. So far, falling borrowing costs have not materially lifted unit prices, but optimism could improve if global easing materialises in H2.
In this article, we will highlight the top five best-performing S-REITs year-to-date (YTD) in the iEdge S-REIT Index and their H1 2025 earnings.
5 Best-Performing S-REITs in H1 2025
| TRUST | YTD TOTAL RETURNS (%) | MARKET CAP (SGD) | DIVIDEND YIELD (%) |
| Frasers Hospitality Trust | 21.4 | 1.3B | 3.1 |
| CapitaLand Integrated Commercial Trust | 13.8 | 15.9B | 5.0 |
| First Reit | 10.7 | 0.5B | 8.7 |
| Frasers Centrepoint Trust | 10.4 | 4.6B | 5.3 |
| ParkwayLife Reit | 10.0 | 2.7B | 3.7 |
Source: Bloomberg, SGX, data as at Jun 26, 2025
Frasers Hospitality Trust (SGX: ACV)
Source: Syfe Brokerage, 1 July 2025
Frasers Hospitality Trust has delivered a total return of 21.4% year-to-date.
Listed on the Singapore Exchange (SGX: ACV), FHT is Singapore’s first global hotel and serviced residence hospitality trust, with a portfolio of 14 quality assets located in key cities across Asia, Australia and Europe.
Its strong unit price performance in H1 2025 was driven mainly by a proposed privatisation, which boosted investor confidence and lifted valuations. Operationally, the trust continues to benefit from resilient travel demand, stable occupancy, and active asset management.
For H1 2025, FHT maintained steady distributions, with a dividend yield of around 3.1%. Although a 3.10% dividend yield is modest, FHT’s capital growth reflects renewed optimism in the hospitality sector.
CapitaLand Integrated Commercial Trust (SGX: C38U)
Source: Syfe Brokerage, 1 July 2025
CapitaLand Integrated Commercial Trust (CICT) has gained +13.8% YTD and offers a solid 5.0% dividend yield.
As Singapore’s first and largest REIT, its portfolio spans 21 properties in Singapore, two in Germany, and three in Australia, with office assets making up about 40% and integrated developments 30%. Backed by resilient consumer spending and strong leasing demand, CICT reported H1 2025 net property income of S$291.5 million and a DPU of S$0.0543, up 2.5% year-on-year—highlighting its stability and growth as a core retail and office REIT.
Based on 12 analyst ratings, CICT has a BUY rating.
First REIT (SGX: AW9U)
Source: Syfe Brokerage, 1 July 2025
First REIT has delivered a +10.7% gain YTD and offers the highest dividend yield of 8.7% among the leaders.
First REIT is Singapore’s first healthcare REIT, with a portfolio focused on healthcare and healthcare-related assets across Asia. Its properties include hospitals, nursing homes, and integrated healthcare facilities in Indonesia, Singapore, and Japan.
In the first half of 2025, First REIT continued to maintain stable operations despite macroeconomic headwinds. Its defensive healthcare focus supported steady rental income and high portfolio occupancy, providing predictable cash flows.
Recent years have seen First REIT actively expanding beyond Indonesia into developed markets such as Japan and Singapore—a strategy aimed at enhancing portfolio resilience and reducing concentration risk.
For investors seeking defensive income exposure to Asia’s long-term healthcare growth, First REIT continues to be a notable option.
First REIT has a BUY rating.
Frasers Centrepoint Trust (SGX:J69U)
Source: Syfe Brokerage, 1 July 2025
Frasers Centrepoint Trust (FCT) has delivered a total return of +10.4% YTD.
FCT is one of the largest suburban retail mall owners in Singapore. Its Singapore retail portfolio includes Causeway Point, Century Square, Hougang Mall, NEX, Northpoint City North Wing, Tampines 1, Tiong Bahru Plaza, Waterway Point, and White Sands. These retail malls are conveniently located near residential areas and within minutes of transportation hubs.
For H1 2025, FCT demonstrated continued resilience. Its properties maintained a high occupancy rate of 99.5%, with rental reversions around 9.0% across its malls. Its forward distribution yield is 5.5%.
Based on 16 analyst ratings, FCT has a BUY rating.
Parkway Life Real Estate Investment Trust (SGX: C2PU)
Source: Syfe Brokerage, 1 July 2025
Parkway Life Real Estate Investment Trust (PREIT) has delivered a total return of +10.0% YTD.
PREIT is one of Asia’s largest listed healthcare REITs, with properties located mainly in Singapore and Japan. By asset value, about two-thirds of the assets are based in Singapore and one-third in Japan. Three private hospitals in Singapore under PREIT include Mount Elizabeth Hospital, Gleneagles Hospital, and Parkway East Hospital. PREIT is differentiated by its defensive nature and offers high-quality earnings visibility.
For its H1 2025, net property income rose 7.5% YoY. DPU grew by 1.3% YoY to 3.84 cents. The forward distribution yield of PREIT is around 3.6%.
Based on 5 analyst ratings, PREIT has a BUY rating.
From the recovery in travel and resilient retail spending to the stability of healthcare and the surge in demand for data centres, S-REITs continue to provide diverse opportunities for yield and long-term capital gains.
Build a diversified S-REIT Portfolio With Syfe
“Diversification is the only free lunch in investing” holds true for REITs just as it does for stocks. When building a REIT portfolio, it’s crucial to maintain diversification across various real estate sub-sectors like retail, commercial, industrial, residential, hospitality, and healthcare.
Beyond choosing the right REITs, investors also need to consider the market outlook for these sectors. If you lack the time or inclination to delve into financial statements, announcements, and market news, consider Syfe REIT+, a portfolio holding 20 of Singapore’s largest REITs.
It offers an easy way to invest in a diversified basket of quality REITs by tracking the iEdge S-REIT Leaders Index, which includes top names such as CICT, FHT, FCT, and Parkway Life REIT.
This means investors gain access to high-quality REITs with robust fundamentals and attractive yields, managed passively to mirror index performance—ideal for building long-term passive income.
If you prefer a DIY approach, Syfe Brokerage offers easy and affordable access to the Singapore market. With low trading fees and no platform or withdrawal fees, it’s a convenient option for building your own REIT portfolio.
You must be logged in to post a comment.