Retail S-REITs see lower cost of debt and positive rental reversions
Seven Singapore-listed real estate investment trusts (S-REITs) with local retail assets have posted mixed results in revenue and net property income. Retail S-REITs' debt costs fell with lower interest rates, while rising consumer traffic drove positive rental reversions.
1. $CapLand IntCom T(C38U.SI)$
CapitaLand Integrated Commercial Trust (CICT) reported a 0.5% dip in Gross Revenue and 0.4% dip in Net Property Income (NPI) for 1H 2025, mainly due to the sale of 21 Collyer Quay. Excluding that property, both would have risen by 1.4% and 1.7%.
Distribution per unit (DPU) rose 3.5% to 5.62 cents. Capital management improved with leverage and debt costs reduced to 37.9% and 3.4%. Portfolio occupancy remained steady at 96.3%, down just 0.1% quarter-on-quarter, while rental reversions grew by 4.8% for office and 7.7% for retail as tenant sales grew 17.9% year-on-year.
CICT also raised S$600 million through a private placement to acquire the remaining 55% stake in CapitaSpring, with the deal 4.9 times oversubscribed at S$2.11 per unit, and expected to be DPU accretive, reinforcing its focus on core domestic assets.
2. $Frasers Cpt Tr(J69U.SI)$
Frasers Centrepoint Trust (FCT) recorded a committed occupancy rate of 99.9% in 3Q 2025, representing an increase of 0.4% compared to the previous quarter. Shopper traffic rose by 2.1%, and tenants’ sales increased by 4.4% year-on-year.
Capital management showed mixed results – aggregate leverage went up by 0.8% to 40.4% with perpetual securities, while cost of debt fell by 0.1% to 3.7%. The REIT’s Hougang mall began asset enhancement initiative (AEI) works in April 2025, reaching approximately 74% leasing pre-commitment with new concepts introduced to the mall.
3. $Lendlease Reit(JYEU.SI)$
Lendlease Global Commercial REIT (LREIT) posted a 1.9% rise in Gross Revenue and 2.7% in NPI for 2H FY2025. DPU grew 1.8% to 1.80 cents for 2H FY2025. The REIT expects a more favourable interest rate outlook to contribute positively towards distribution performance.
Cost of debt improved to 3.46% per annum with interest coverage ratio improved to 1.6 times. Post its financial year end, LREIT entered into an agreement to divest Jem office for S$462 million, which will strengthen the REIT’s capital structure.
4. $Mapletree PanAsia Com Tr(N2IU.SI)$
Mapletree Pan Asia Commercial Trust (MPACT) saw Gross Revenue and NPI dips in 1Q FY2025/26, largely due to the strategic divestment of Mapletree Anson and lower overseas contributions.
DPU fell 3.8% to 2.01 Singapore cents. Occupancy dipped slightly to 89.3%, but rental reversion was positive at 1.4% with VivoCity leading with a 14.7% uplift. In July 2025, MPACT announced the proposed divestment of two non-core Japanese properties for JPY8,730.0 million (S$78.7 million). This transaction aligns with the Manager’s ongoing strategy to enhance portfolio quality and focus on core assets.
5. $OUEREIT(TS0U.SI)$
OUE REIT’s Mandarin Gallery recorded a committed occupancy rate of 99.0% and rental reversion of 34.3% in 2Q 2025. The average passing rents for the property increased by 2.7% to S$22.22 psf per month, compared to Orchard Road retail rents growth of 0.5%.
OUE REIT collaborated with several partners to introduce new experiences at the shopping mall, including a partnership with POP MART to feature LABUBU at Mandarin Gallery.
6. $StarhillGbl Reit(P40U.SI)$
Starhill Global REIT saw a 0.7% year-on-year rise in Gross Revenue and maintained steady NPI in 2H FY24/25. DPU held at 1.85 cents. Retail portfolio committed occupancy was 97.3%, with Singapore properties fully leased. In FY24/25, Wisma Atria Property's shopper traffic rose 5% year-on-year, though tenant sales fell 5.2%. Aggregate leverage remained at 36.0% and average debt maturity was 3.1 years.
7. $Suntec Reit(T82U.SI)$
Suntec REIT saw Gross Revenue and NPI rise by 3.3% and 5.6% in 1H 2025, driven by a one-off compensation in Sydney, Australia and stronger Singapore performance. DPU grew 3.7% to 3.155 cents.
Suntec City Mall recorded rental reversion of 18.0% for 1H 2025 despite a slight drop in shopper traffic and tenant sales. The REIT expects retail sales to stay subdued amid cautious consumer spending, but Suntec City Mall should maintain over 95% occupancy due to strong tourism and MICE activity. While positive rent reversions are likely, they may ease in FY25 given economic uncertainties.
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