Want to earn passive income from real estate without the headaches of property management? Singapore’s Real Estate Investment Trusts (REITs) might be the perfect fit. Offering yields of around 6%, S-REITs remain a smart choice — especially with interest rates expected to drop in 2025, making them even more attractive for income-focused investors.
Singapore’s REIT market is one of the largest and most diverse in Asia, drawing investors with its mix of retail, industrial, and commercial assets. Whether you’re eyeing stable dividends or long-term growth, S-REITs offer exposure to top-tier properties and sectors across the region.
But which REITs should you pick? In this guide, we’ll uncover the best REITs in Singapore, sharing key insights, performance data, and strategies to help you make confident investment decisions in 2025.
What Are REITs?
Real Estate Investment Trusts (REITs) pool money from multiple investors to purchase and manage income-generating real estate assets. These assets often include shopping malls, offices, industrial buildings, hotels, and healthcare facilities. By investing in REITs, investors can benefit from the income and potential capital appreciation of real estate without directly owning property.
How Does It Work?
REITs have a pretty direct structure. The company will use all the money raised by the unitholders, also referred to as the investors during the initial public offering (IPO), to buy a pool of properties. After purchasing them, these properties will be leased out to tenants, companies, or individuals.
The rental income will be distributed back to the unitholders as income, similarly to dividends paid out. Before the final payout is split among the investors, the REIT will deduct some managerial expenses, including property management fees, annual REIT managers’ fees, trustees’ fees, and other extra costs.
Apart from these deductions, some companies may also incur taxation costs, especially if they have properties in foreign jurisdictions. The income will be taxed according to the country’s specific laws. During reporting of financial statements, the companies will indicate all the information about these types of fees.
Types of REITs
- Commercial: These are properties primarily used to conduct business, such as office buildings.
- Retail: Retail REITs manage and own retail properties and rents the space to tenants. They are primarily in central business districts and upmarket areas where they focus on real estate assets such as retail space for large regional malls, grocery-anchored shopping centers, boutiques, and outlet stores.
- Industrial: The properties under this REIT include logistics properties, warehouses, and data centers. These companies manage and own properties used for manufacturing, storing, and distribution of goods.
- Hospitality: Hospitality REITs are more focused on acquiring, developing, and managing hotels, serviced apartments, lodgings, motels, luxury resorts, and business class hotels. They also lease out properties to guests.
- HealthCare: These companies own and manage several healthcare-related properties and collect rent from tenants. These can be hospitals, nursing homes, or medical office buildings.
- REIT Exchange Traded Funds (REIT ETF): On the other hand, REIT ETF is an investment that tracks the performance of an underlying asset of a specific REIT Index. Suppose you aren’t confident in choosing the REITs yourself. In that case, you can consider investing in REIT ETF as this will provide you with exposure to a diversified market across industries and geographies.
Key Benefits of Investing in REITs:
- Regular Dividend Payouts: REITs are required to distribute a significant portion of their taxable income as dividends, providing investors with consistent income streams.
- Portfolio Diversification: Investing in REITs offers exposure to various real estate sectors, reducing risk through diversification.
- Potential for Capital Appreciation: As property values increase over time, so can the value of REIT shares, offering potential capital gains.
Singapore’s REIT market is both mature and highly regulated, ensuring transparency and investor protection. The Monetary Authority of Singapore (MAS) has set a maximum leverage limit, known as the gearing ratio, at 50% of a REIT’s total assets. Additionally, MAS mandates a minimum interest coverage ratio (ICR) of 1.5 times, ensuring REITs can adequately meet their debt obligations.
These regulations promote prudent borrowing and financial stability within the sector, making Singapore’s REIT market an attractive option for investors seeking reliable returns.
Key Metrics to Evaluate REITs
Investing in Real Estate Investment Trusts (REITs) requires a keen understanding of specific financial metrics to assess their health and potential returns. Let’s delve into the essential indicators:
Dividend Per Unit (DPU)
DPU indicates the dividend paid to investors for each unit of the REIT. A consistent increase in DPU suggests effective management and growing profitability. For instance, Mapletree Industrial Trust has demonstrated a strong track record of increasing its DPU, reflecting its robust performance.
Net Property Income (NPI)
NPI measures the profitability of a REIT’s property portfolio, calculated as rental income minus property-related expenses. A growing NPI is essential for long-term returns, as it indicates efficient property management and the potential for higher distributions to investors.
Gearing Ratio
This ratio represents the REIT’s debt level relative to its total assets. In Singapore, maintaining a gearing ratio below 50% is critical for financial stability and regulatory compliance. Frasers Hospitality Trust, for example, has managed to reduce its gearing ratio to 34.9%, enhancing its financial resilience.
Portfolio Occupancy Rates
High occupancy rates indicate strong property management and demand for the REIT’s properties. Sustained high occupancy suggests stable rental income and effective tenant retention strategies.
Property Types and Locations
Diversification across different property sectors (e.g., retail, office, industrial) and geographies can mitigate risks associated with market fluctuations. A well-diversified portfolio enhances income stability and growth potential.
Top 7 Best REITs in Singapore for 2025
Investing in Singapore’s Real Estate Investment Trusts (REITs) offers exposure to a diverse and dynamic property market. Here are seven top-performing REITs to consider for 2025:
| Singapore REIT | Type | Dividend Yield |
| Mapletree Logistics Trust (SGX: M44U) | Logistics & Industrial | 7.15% |
| Parkway Life REIT (SGX: C2PU) | Healthcare | 3.92% |
| CapitaLand Integrated Commercial Trust (SGX: C38U) | Retail & Commercial | 5.54% |
| Mapletree Industrial Trust (SGX: ME8U) | Industrial & Data Centers | 6.00% |
| Frasers Centrepoint Trust (SGX: J69U) | Retail | 5.65% |
| Keppel DC REIT (SGX: AJBU) | Data Centers | 4.17% |
| Mapletree Pan Asia Commercial Trust (SGX: N2IU) | Retail & Office | 7.43% |
1. Mapletree Logistics Trust (SGX: M44U)
As of December 2024, Mapletree Logistics Trust (MLT) has a market capitalization of approximately S$8.5 billion, with a distribution per unit (DPU) of S$0.0900, yielding around 7.15%.
Dividend Yield: 7.15%
Portfolio Overview: MLT’s portfolio comprises 189 properties across eight countries, focusing on logistics and industrial assets.
Recent Performance and Key Updates: Despite global economic challenges, MLT has maintained strong occupancy levels and positive rental reversions, contributing to consistent DPU growth over the past eight years.
2. Parkway Life REIT (SGX: C2PU)
Parkway Life REIT boasts a market capitalization of approximately S$2.3 billion, with a DPU of S$0.1477, yielding around 3.92%.
Dividend Yield: 3.92%
Portfolio Overview: The REIT owns 64 healthcare properties, including three premier hospitals in Singapore, 60 nursing homes in Japan, and a specialist center in Malaysia.
Recent Performance and Key Updates: In November 2024, Parkway Life REIT expanded its portfolio by acquiring 11 nursing homes in France for S$159.9 million, aiming to enhance its income stability and geographical diversification.
Future Growth Prospects: With an aging population in Japan and Singapore, demand for healthcare services is expected to rise, providing a stable income stream for the REIT.
3. CapitaLand Integrated Commercial Trust (SGX: C38U)
CICT is Singapore’s largest-listed REIT, with a market capitalization of approximately S$14 billion as of July 2024. Its assets encompass 21 properties in Singapore, including retail malls, office buildings, and integrated developments, as well as holdings in Germany and Australia. CICT’s strategic focus on prime locations and high-quality properties positions it as a leading player in Singapore’s commercial real estate sector.
Dividend Yield: 5.54%
Portfolio Overview: CICT’s diversified portfolio includes 21 retail and office properties in Singapore, along with assets in Germany and Australia, collectively valued at S$24.5 billion as of December 2023.
Recent Performance and Key Updates: CICT has demonstrated resilience with improved results, indicating effective portfolio management and strategic asset enhancements.
Future Growth Prospects: CICT’s diversified asset base and proactive management strategies position it well to capitalize on economic recovery and growth in the commercial real estate sector.
4. Mapletree Industrial Trust (SGX: ME8U)
Mapletree Industrial Trust has a market capitalization of approximately S$6.38 billion, with a DPU of S$0.1343, yielding around 6.00%.
Dividend Yield: 6.00%
Portfolio Overview: The REIT’s portfolio comprises 85 properties, including data centers and industrial real estate across Singapore and North America.
Recent Performance and Key Updates: Mapletree Industrial Trust has been upgrading its portfolio through strategic enhancements of its flatted factory assets and increasing acquisitions of data centres, which now constitute 50% of its portfolio.
Future Growth Prospects: The increasing demand for data storage and cloud services positions Mapletree Industrial Trust favorably for continued growth in the data center sector.
5. Frasers Centrepoint Trust (SGX: J69U)
Frasers Centrepoint Trust (FCT) is a leading retail real estate investment trust in Singapore, with assets under management of approximately S$6.9 billion as of September 30, 2023. It has a market capitalization of approximately S$3.87 billion, with a DPU of S$0.1204, yielding around 5.65%.
Dividend Yield: 5.65%
Portfolio Overview: The REIT focuses on suburban retail malls in Singapore, owning properties that cater to essential services and daily necessities.
Recent Performance and Key Updates: Frasers Centrepoint Trust has maintained high occupancy rates and steady footfall in its malls, reflecting the resilience of suburban retail amidst economic fluctuations.
Future Growth Prospects: The stability of suburban retail, coupled with potential asset enhancements, supports a positive outlook for Frasers Centrepoint Trust.
6. Keppel DC REIT (SGX: AJBU)
Keppel DC REIT is Asia’s first pure-play data centre real estate investment trust, with a diversified portfolio of 23 data centres across nine countries, including Singapore, Australia, and Germany. Keppel DC REIT has a market capitalization of approximately S$3.5 billion, with a DPU of S$0.0938, yielding around 4.17%. In November 2024, Keppel DC REIT secured full ownership of key data centres in Singapore, further strengthening its position in the digital infrastructure sector.
Dividend Yield: 4.17%
Portfolio Overview: Specializing in data centers, the REIT owns properties across Asia-Pacific and Europe, serving a diversified tenant base in the digital economy.
Recent Performance and Key Updates: Keppel DC REIT has achieved positive rental reversions and expanded its portfolio through strategic acquisitions, enhancing its income stability.
Future Growth Prospects: With the ongoing digital transformation and increased data consumption, Keppel DC REIT is well-positioned to benefit from the growing demand for data center services.
7. Mapletree Pan Asia Commercial Trust (SGX: N2IU)
As of December 2024, Mapletree Pan Asia Commercial Trust (MPACT) has a market capitalization of approximately S$8.5 billion. In 2QFY2025, MPACT reported a distribution per unit (DPU) of 1.98 cents, reflecting an 11.6% year-over-year decline.
Dividend Yield: 7.43%
Portfolio Overview: MPACT’s diversified portfolio includes 17 commercial properties across five Asian markets, encompassing retail, office, and business park assets. Notable properties include VivoCity in Singapore and Festival Walk in Hong Kong.
Recent Performance and Key Updates: In 2QFY2025, MPACT’s gross revenue declined by 6.1% year-over-year to S$225.6 million, while net property income decreased by 8.5% to S$167.7 million. These declines were attributed to the divestment of Mapletree Anson and lower contributions from overseas assets, compounded by a strengthening Singapore dollar.
Future Growth Prospects: MPACT is undertaking a major upgrading of VivoCity’s Basement 2, scheduled for completion by 2025, aimed at enhancing the property’s appeal and revenue potential. Additionally, the REIT’s focus on maintaining high occupancy rates and positive rental reversions, particularly in its Singapore assets, positions it for resilience amid market fluctuations
Strategies for Choosing the Right REITs
Picking the right REITs isn’t just about chasing high yields. It’s about aligning your investments with your financial goals and risk tolerance. Here are a few practical strategies to help you make smarter choices:
Determine Your Risk Appetite
Are you looking for higher yields or greater stability? REITs offering higher yields often come with more risk, such as exposure to volatile sectors or international markets. In contrast, REITs with lower but more consistent payouts tend to focus on stable assets like healthcare or office properties. Choose based on your long-term goals.
Diversify Across Sectors
Don’t put all your eggs in one basket. Invest in REITs across different sectors—retail, industrial, hospitality, and healthcare—to reduce exposure to downturns in any single market. For example, industrial REITs have performed well with the rise of e-commerce, while healthcare REITs offer long-term stability due to aging populations.
Monitor Key Metrics
Keep a close eye on important financial indicators like DPU (Distribution Per Unit), NPI (Net Property Income), and the gearing ratio. Consistent DPU growth indicates strong management, while a gearing ratio below 50% ensures financial stability.
Keep an Eye on Economic Trends
REIT performance is sensitive to broader economic factors such as interest rates, inflation, and economic growth. When interest rates drop, REITs tend to perform better due to lower borrowing costs and higher property valuations. Stay updated on these trends to time your investments wisely.
By applying these strategies, you can build a well-rounded REIT portfolio that matches your financial objectives and withstands market fluctuations.
Conclusion
Choosing the right REITs is key to building long-term financial stability through steady income and growth. Focus on key metrics, diversify across sectors, and stay updated on market trends to make smarter investment decisions. Regularly review your portfolio to ensure it stays aligned with your goals and adjusts to changing conditions.
Key Takeaways:
- Singapore’s REITs deliver yields of around 6%, making them attractive for investors, especially with interest rates expected to drop in 2025.
- Investors should invest in diversified REITs across sectors like retail, industrial, and healthcare, while closely monitoring key metrics like DPU, NPI, and gearing ratio to manage risk.
- REITs perform better in low-interest-rate environments, and staying updated on economic trends like inflation and growth helps investors make smarter decisions.
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