The 3 Worst-Performing STI REITs in Q1 2026: Is It Time To Buy?

The Smart Investor07:30

Not every blue-chip REIT has kept pace with the Straits Times Index (SGX: ^STI) in the first quarter of 2026. While Singapore’s benchmark index has marched higher, three well-known REITs – CapitaLand...

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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nThe 3 Worst-Performing STI REITs in Q1 2026: Is It Time To Buy?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-04-07 07:30 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://thesmartinvestor.com.sg/the-3-worst-performing-sti-reits-in-q1-2026-is-it-time-to-buy/><strong>The Smart Investor</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Not every blue-chip REIT has kept pace with the Straits Times Index (SGX: ^STI) in the first quarter of 2026.\n\nWhile Singapore’s benchmark index has marched higher, three well-known REITs – CapitaLand...</p>\n\n<a href=\"https://thesmartinvestor.com.sg/the-3-worst-performing-sti-reits-in-q1-2026-is-it-time-to-buy/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"CFA","symbol_name":"VictoryShares US 500 Volatility Wtd ETF","start_time":0,"source_url":"https://thesmartinvestor.com.sg/the-3-worst-performing-sti-reits-in-q1-2026-is-it-time-to-buy/","article_id":"2625984600","we_media_id":null,"thumbnails":["https://thesmartinvestor.com.sg/wp-content/uploads/2025/12/Blue-chip-losers-1-300x200.png"],"rights":{"source":"thesmartinvestor_highlight","url":"https://thesmartinvestor.com.sg/the-3-worst-performing-sti-reits-in-q1-2026-is-it-time-to-buy/","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2625984600","pubTimestamp":1775518200,"columns":[],"sourceInfo":{"source_id":"thesmartinvestor_highlight","name":"The Smart Investor"},"weMediaInfo":null,"summary":"Three blue-chip REITs are bringing up the rear among Singapore’s STI stocks — but a closer look at their operations may surprise you.","collect":0,"end_time":0,"defaultTopTitle":"thesmartinvestor.com.sg","property":[],"viewcount":null,"language":"en","relate_stocks":{"CFA":"VictoryShares US 500 Volatility Wtd ETF","BK6142":"多户式住宅房地产信托","STI":"Solidion Technology Inc.","CFA.SI":"NikkoAM-STC Asia REIT","BK4096":"电气部件与设备","BK6082":"工业房地产投资信托","BK6512":"房地产股","BUOU.SI":"星狮物流工业信托","M44U.SI":"丰树物流信托","STI.SI":"富时新加坡海峡指数","BK6133":"工业房地产信托","BK6523":"ESG概念","A17U.SI":"凯德腾飞房产信托","8C8U.SI":"Cent Accom REIT"},"translate_title":"2026年第一季度表现最差的3只STI REITs：是时候购买了吗？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"CFA.SI":1.5,"STI.SI":1.5,"A17U.SI":1,"8C8U.SI":0.68,"CFA":1.5,"STI":1.5,"BUOU.SI":1,"M44U.SI":1},"content_text":"Not every blue-chip REIT has kept pace with the Straits Times Index (SGX: ^STI) in the first quarter of 2026.\n\nWhile Singapore’s benchmark index has marched higher, three well-known REITs – CapitaLand Ascendas REIT (SGX: A17U), Mapletree Logistics Trust (SGX: M44U), and Frasers Logistics & Commercial Trust (SGX: BUOU) – have lagged behind their blue-chip peers.\n\nAt first glance, the culprit looks obvious: all three saw their distribution per unit (DPU) fall. \n\nBut dig into the details, and a more nuanced picture emerges. \n\nTheir operational metrics – occupancy rates, rental reversions – are largely stable or improving. \n\nThe DPU declines were driven not by deteriorating portfolios but by capital structure effects that may prove temporary.\n\nLet’s take a closer look.\n\nCapitaLand Ascendas REIT: Growing Pains from a Growth Move\nCapitaLand Ascendas REIT, or CLAR, is Singapore’s largest listed industrial REIT, with 222 properties valued at S$18.2 billion across Singapore, the US, Australia, and the UK/Europe.\n\nFor the full year ended 31 December 2025 (FY2025), CLAR’s revenue edged up 1.0% year on year (YoY) to S$1.5 billion, while net property income (NPI) rose 1.7% to S$1.1 billion. \n\nDistributable income climbed 1.4% to S$678.3 million. \n\nYet DPU slipped 1.3% to S$0.15005.\n\nThe disconnect? A S$500 million equity fundraising in June 2025 enlarged the unit base, diluting per-unit payouts even as the underlying business grew.\n\nThe good news is that CLAR put that capital to work. \n\nThe REIT completed S$1.5 billion of acquisitions across six properties at initial NPI yields of approximately 6% to over 7%, and divested nine properties for S$506.5 million at around 9% above market valuation. \n\nRental reversions remained healthy at +12.0% for FY2025, with the fourth quarter hitting an impressive +19.6%.\n\nOccupancy dipped to 90.9%, down 1.9 percentage points YoY, though this was partly due to newly completed redevelopments still in their leasing-up phase. \n\nExcluding these, occupancy stood at 91.9%. \n\nAggregate leverage remained manageable at 39.0%, with cost of debt improving to 3.5%.\n\nMapletree Logistics Trust: A Headline That Overstates the Problem\nMapletree Logistics Trust, or MLT, owns 174 warehouses and distribution centres across nine Asia-Pacific markets with S$13.0 billion in assets under management.\n\nFor the third quarter ended 31 December 2025 (3QFY2026), MLT reported gross revenue of S$176.8 million, down 3.1% YoY, and NPI of S$152.0 million, down 3.3%. \n\nDPU tumbled 9.3% YoY to S$0.01816.\n\nThat drop looks alarming — until you unpack it. \n\nThe prior year’s DPU included S$7.5 million in divestment gains. \n\nCurrency headwinds from the Korean won, Japanese yen, Vietnamese dong, and Hong Kong dollar further weighed on results, as did the loss of contributions from 12 divested properties. \n\nStrip all of that out, and DPU from operations dipped just 2.1% YoY.\n\nOn the ground, the picture is steadier than the headline suggests. \n\n\nPortfolio occupancy improved to 96.4%, up from 96.1% a quarter ago, while rental reversion stayed positive at 1.1%. \n\nNotably, China’s negative rental reversion moderated dramatically to -2.2%, a marked improvement from -10.2% a year earlier.\n\nMLT is also actively recycling its portfolio, having divested six properties year-to-date at an average 20% premium to valuation. \n\nThe manager has identified around S$1 billion of older-specification assets for divestment, with half from China and Hong Kong.\n\nFrasers Logistics & Commercial Trust: Strong Operations, Stubborn Costs\nFrasers Logistics & Commercial Trust, or FLCT, owns 113 logistics, industrial, and commercial properties worth S$6.9 billion across Australia, Germany, Singapore, the UK, and the Netherlands.\n\nThe trust released a business update for 1QFY2026 (the three months to 31 December 2025), so no revenue, NPI, or DPU figures were disclosed for the quarter. \n\nBut the reference point is telling: for the full year ended 30 September 2025, DPU fell 12.5% YoY to S$0.05950, dragged down by a 26.4% surge in finance costs – even as revenue rose 5.6% to S$471.5 million and adjusted NPI climbed 1.9%.\n\nOperationally, FLCT’s first quarter update was encouraging. \n\nPortfolio occupancy improved to 96.2% from 95.1% a quarter ago, driven by Alexandra Technopark’s occupancy jumping from 77.9% to 86.3% after the manager secured leases for roughly 83% of the ex-Google space. \n\nLogistics and industrial (L&I) occupancy held firm at 99.7%, and rental reversions on the L&I side came in at a robust +36.4%.\n\nGearing improved to 34.8%, providing S$592 million of debt headroom to the 40% regulatory limit. \n\nCost of borrowings held steady at 3.1%. \n\nThe key question is whether borrowing costs can begin to ease – because DPU recovery hinges on it.\n\nGet Smart: Look Past the Headline DPU\nFalling DPU doesn’t always signal a weakening REIT. \n\nFor CLAR, the dip was a result of equity dilution – the short-term price of raising capital to fuel long-term growth. \n\nMLT faced a different battle: the external friction of currency headwinds and the absence of the one-off divestment gains that had padded previous payouts. \n\nMeanwhile, FLCT’s performance reflected the broader reality of higher finance costs pressing against an otherwise resilient portfolio.\n\nIn each instance, the operational vitals – occupancy rates, rental reversions, and portfolio recycling – reveal a much more encouraging narrative.\n\nExperienced investors recognise the need to separate the “noise” of capital structure adjustments from the “signal” of underlying business strength. \n\nThe real question isn’t whether DPU fell, but why – and whether the cause is a temporary hurdle or a structural shift.\n\nThis new 10-minute read could change how you invest this year. Inside: \n\n5 SG dividend-paying blue chips that have quietly powered through past downturns, and could reward you handsomely in the next.\n\nGrab the free report now. It might be the most profitable thing you read today.\n\nDisclosure: The Smart Investor owns units of CLAR, MLT and FLCT.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"isVideo":false,"video":null,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"tenantId":"TBGLOBAL","deviceId":"web-server-community-laohu8-v3","version":"4.40.0","shortVersion":"4.40.0","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2625984600","isCrawlerRequest":true}