The Straits Times Index (SGX: STI) has shown impressive performance in 2025, with a year-to-date (YTD) increase of more than 21% as of December 15, 2025.
However, the same positive trend has not been observed in real estate investment trusts (REITs).
Singapore’s blue-chip REITs experienced a turbulent 2025, faced with interest rate fluctuations, international challenges, and evolving consumer behaviors.
Despite these headwinds, three standout REITs managed to outperform their peers.
Mapletree PanAsia Commercial Trust (Mapletree PanAsia Com Tr): Total Returns of 27.5% YTD
Mapletree PanAsia Commercial Trust (MPACT) manages a diversified portfolio of retail and office properties across Singapore, Hong Kong, China, Japan, and South Korea, with assets under management valued at approximately S$15.7 billion.
MPACT’s recent performance was mixed. For the first half of fiscal year ending 31 March 2026 (1HFY2026), gross revenue declined by 5.4% year-on-year (YoY) to S$437.1 million, and net property income (NPI) decreased by 5% to S$329.9 million.
Distribution per unit (DPU) decreased slightly by 1.2% YoY to S$0.0402, largely due to lower overseas contributions. The portfolio had a committed occupancy rate of 88.9% as of 30 September 2025, with rental reversion remaining flat for 1HFY2026, showing management’s emphasis on tenant retention and cash flow stability.
VivoCity’s strong 14.1% rental reversion helped offset weaker performance in markets like China and Hong Kong. VivoCity also saw a 0.6% increase in shopper traffic YoY to 21.9 million visitors, with a 3.5% increase in tenant sales to over S$519 million.
In Hong Kong, Festival Walk reported a 6.1% rise in shopper traffic to 15.6 million, although tenant sales declined by 2.6% to HK$1.7 billion. Overall, the decline in revenue was mainly due to divestments of Mapletree Anson and two office buildings in Japan. Reduced operating expenses and finance costs, driven by lower utility rates and strategic debt reduction, helped mitigate the DPU decline. The REIT saw a slight 1.5% YoY increase in DPU for 2QFY2026, fostering optimism for a positive outlook.
CapitaLand Integrated Commercial Trust (CapLand IntCom T): Total Returns of 26.6% YTD
CapitaLand Integrated Commercial Trust (CICT) is Singapore’s largest commercial S-REIT, with a diverse portfolio that includes retail, office, and integrated development properties in Singapore, Germany, and Australia.
CICT’s recent results showcased resilience. For the first nine months of 2025 (9M 2025), CICT reported a gross revenue of S$1.2 billion, marking a 0.1% increase YoY, and NPI of around S$874 million, a 0.2% increase YoY.
CICT’s acquisition of a 50% stake in ION Orchard in October 2024 contributed to these gains. The REIT demonstrated solid portfolio metrics, with a committed occupancy rate of 97.2% and positive rental reversion of 7.8% for its retail sector and 6.5% for its office sector YTD.
The retail segment delivered strong results, with tenant sales increasing by 19.2% YoY and shopper traffic rising by 24.8% YoY. Without ION Orchard, tenant sales and shopper footfall would have risen by 1% and 4.5% YoY respectively.
Frasers Logistics & Commercial Trust (SGX: Frasers L&C Tr): Total Returns of 17.9%
Frasers Logistics & Commercial Trust (FLCT) manages a diversified portfolio that includes logistics, industrial, and commercial properties across Australia, Europe, and Singapore, with total assets under management of S$6.9 billion.
FLCT's fiscal year ended 31 September 2025 (FY2025) showed mixed results. Revenue rose by 5.6% YoY, from S$446.7 million in FY2024 to S$471.5 million in FY2025. Adjusted NPI grew by 1.9% YoY to S$326.1 million.
However, DPU dropped by 12.5% YoY to S$0.0595 per unit due to higher finance expenses and the absence of capital divestment gains from FY2024. The REIT's aggregate leverage was 35.7%, providing room for future acquisitions. FY2025 was marked by strong leasing momentum, with FLCT achieving a positive rental reversion of 29.5%, including a notable 24.8% rental uplift for its logistics and industrial properties in New South Wales and a 35.1% gain in Victoria.
Operational Discipline Outweighs Market Noise
Strong performance over the past 12 months is promising, but what truly matters is the sustainability of distributions over time. For MPACT, capital recycling from weaker assets into VivoCity is a strategic move. CICT’s acquisition of ION Orchard strengthens its position in prime retail investments, and FLCT’s 29.5% rental reversion provides optimism for overcoming DPU declines.
Dividend investors should focus on the sustainability of the DPU, which will be proven over time. The SGX is gaining strength, liquidity is rising, and the Monetary Authority of Singapore's market revival plans are creating a supportive environment for yield-focused assets.
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