[SINGAPORE] The latest earnings season for Singapore-listed real estate investment trusts (S-Reits) has commenced, with seven trusts reporting their latest financial results or business updates over the past week.
Of the seven, the six that provided information on distributable income have all reported year-on-year (yoy) growth. This came on the back of mostly higher revenue and net property income (NPI), as well as decreased borrowing costs.
At least 23 other trusts are scheduled to release their results between Oct 28 and Nov 14. Among the three pure-play data centre (DC) S-Reits, two have reported their results.
Digital Core Reit on Oct 22 posted distributable income of US$35.2 million for the first nine months of FY2025, up 1.9 per cent yoy. This was amid revenue increasing 83.9 per cent and NPI climbing 49.6 per cent.
The Reit’s occupancy remained constant and high at 98 per cent. Its manager noted that DC fundamentals tightened further in the period, as demand continues to be robust amid the growth of artificial intelligence workloads.
Similarly, Keppel DC Reit also reported a 42.2 per cent increase in NPI for 9M, driven by acquisitions as well as higher contributions from contract renewals and escalations.
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Its improved top line and lower finance costs supported its 55.5 per cent growth in distributable income. Distribution per unit (DPU) for the period was up 8.8 per cent yoy.
The manager of Keppel DC Reit noted that global DC demand is projected to grow to 100 gigawatts (GW) in 2027 from 69 GW this year. To boost its resilience, the trust is scaling strategically through hyperscale acquisitions.
NTT DC Reit, which listed on the Singapore Exchange in July, will announce its first set of results on Nov 12.
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Meanwhile, S-Reits with domestic retail exposure that posted their results last week have also delivered a robust performance.
Suburban retail mall owner Frasers Centrepoint Trust (FCT) reported a 0.6 per cent improvement in DPU for H2 FY2025. Its revenue and NPI rose 14.3 per cent and 12 per cent, respectively.
The showing was boosted by contributions from Northpoint City’s South Wing – acquired earlier this year – and Tampines 1, which completed its asset-enhancement initiative (AEI) in August 2024.
FCT’s portfolio registered a healthy rental reversion of 7.8 per cent for FY2025, with shopper traffic and tenant sales also notching yoy improvements. The trust’s manager expects the retail market to continue benefiting from resilient demand, which is underpinned by population growth, rising household incomes and supportive government schemes.
Suntec Reit reported a 12.5 per cent rise in DPU for Q3, amid stronger operational performance from its Singapore portfolio and decreased financing costs.
Its Singapore office and retail portfolio recorded growth in revenue and NPI on the back of higher rents. This more than offset the weaker performance of some properties in its Australia portfolio.
Rental reversion for Suntec City Mall stood at 8.6 per cent for Q3, moderating from 21.6 per cent in the previous quarter. The Reit’s manager expects a stable performance from its Singapore retail assets, with committed occupancy forecast to be above 95 per cent.
Mapletree Pan Asia Commercial Trust reported a 1.5 per cent increase in DPU for its Q2 ended September, with higher contributions from VivoCity despite downtime from ongoing AEIs.
However, revenue and NPI dipped during the period as overseas contributions fell, further dampened by a strong Singapore dollar. Meanwhile, finance expenses improved 16.4 per cent yoy due to favourable interest-rate conditions and proactive debt reduction.
OUE Reit also reported a 19.7 per cent decline in finance costs to S$21.6 million in Q3, amid a falling interest-rate environment and active capital management.
For the period, its revenue and NPI grew by 1.2 per cent and 2 per cent, respectively, on a like-for-like basis. Across its commercial portfolio, which includes office and retail assets, there were higher average passing rents.
On Oct 22, Sabana Industrial Reit reported DPU of S$0.0101 for Q3. This was up 38.4 per cent yoy, amid higher revenue and NPI. It also recorded positive rental reversion of 11.3 per cent, marking its 19th consecutive quarter of positive rental reversion.
Sabana Industrial Reit was renamed Alpha Integrated Reit on Oct 23, following the appointment of its new internalised manager. SGX RESEARCH
The writer is a research analyst at SGX. For more research and information on Singapore’s Reit sector, visit sgx.com/research-education/sectors for the S-Reits & Property Trusts Chartbook.
