Top 5 Singapore REITs to trade in 2025

What are REITs and how do they work?

Real estate investment trusts (REITs) are publicly traded companies that own, operate or finance income-generating real estate. They work like mutual funds, but instead of investing in stocks or bonds, REITs focus on property assets.

The beauty of REITs is that they give you access to real estate income and capital appreciation without requiring you to buy, manage or finance properties yourself. This opens up real estate to everyday traders, making previously inaccessible assets available to anyone.

What makes REITs unique

To qualify as a REIT, companies must meet several critical requirements:

1. Invest at least 75% of total assets in real estate
   
2. Derive at least 75% of gross income from real estate-related sources
   
3. Distribute a minimum of 90% of taxable income to shareholders as dividends¹

This rule about giving shareholders 90% of profits is why REITs often pay higher dividends than regular stocks. Since REITs must pay out most of their profits to investors by law, they typically provide regular cash payments that many traders like.

Types of REITs by property sector

REITs specialise in different property types, each with unique risk and return characteristics:

• Retail
• Office
• Industrial
• Hospitality
• Healthcare
• Residential
• Data centre

Key REIT numbers to watch

When looking at REITs, these are the important numbers that help you decide if they're worth trading:

• Dividend percentage (Distribution yield): How much cash you get back each year compared to the current share price. A 5% yield means you'd get $50 yearly on a $1,000 investment.
• Property value (Net asset value or NAV): What all the REIT's properties are worth after subtracting any debts. Think of this as the "real" value behind the shares.
• Price compared to property value (Price-to-NAV ratio): Whether the REIT is trading above or below what its properties are actually worth. A ratio of 1.2 means you're paying 20% more than the underlying property value.
• Debt level (Gearing ratio): How much the REIT has borrowed compared to what it owns. Higher debt means more risk but potentially higher returns. Singapore rules limit this to 50%.
• Ability to pay interest (Interest coverage ratio): How comfortably the REIT can pay the interest on its loans from its rental income. Higher is better and safer.
• Remaining lease length (WALE): How long the current tenant leases will last on average. Longer leases generally mean more stable income.

Why traders choose Singapore REITs

Singapore REITs (S-REITs) are REITs listed on the Singapore Exchange (SGX). They give you access to high-quality property assets across Asia without the hassle of buying actual buildings. With over 40 REITs worth more than S$100 billion², Singapore has become Asia's REIT powerhouse.

What makes S-REITs attractive
 

• Strong rules: Singapore's strict regulations protect your interests
• Tax benefits: You only pay tax once, not at both company and investor levels
• Easy trading: Buy and sell on SGX during normal market hours
• Low entry cost: Get exposure to premium properties for a fraction of their price
• Expert management: Professional teams handle all property details
• Regional exposure: Access properties across Singapore, Asia, Australia and beyond

S-REIT outlook for 2025

Expected interest rate cuts in 2025 will likely boost S-REIT prices³, with each sector offering different opportunities.

Where to look for gains
 

• Retail: Tourist mall footfall rising with 15-20 million visitors expected⁴
• Office: Premium Grade A space maintaining demand despite work-from-home trends
• Industrial/Logistics: E-commerce growth driving warehouse and data centre demand
• Healthcare: Aging population supporting steady returns with lower volatility

Trading triggers to watch
 

• Rate cut announcements: Morgan Stanley's research indicates that REITs have historically delivered strong returns one year after the first rate cut, outperforming the S&P 500 and most GICS sectors⁵
• Dividend announcements: May trigger short-term price movements
• Acquisition news: Could drive medium-term growth, especially for REITs with low debt
• Tourism data: Strong visitor numbers may boost retail mall REITs
• Office occupancy reports: Watch for signs of returning corporate tenants

Top 5 Singapore REITs to trade in 2025

Here are the five Singapore REITs with the strongest trading potential for 2025. Each has been selected based on asset quality, management track record, growth potential and sector outlook.

1. CapitaLand Integrated Commercial Trust (CICT) - SGX: C38U

Singapore's largest REIT with a focus on shopping malls and office buildings.

What they own

• Famous malls and buildings like Raffles City Singapore, Plaza Singapura and ION Orchard
• Prime locations in Singapore's business district and busy areas
• Mix of shops, offices and businesses as tenants
• Properties in Singapore, Australia, Germany and Japan

Key numbers

• Expected yearly cash return: 5.0-5.8% (for 2025)⁶
• Current price compared to actual property value: 0.9-1.1 times⁷
• Debt percentage: 38.7% of total assets⁸
• Growth potential: More tourists visiting Singapore malls and offices filling up again⁹

Historical price movements

CapitaLand Integrated Commercial Trust share price has historically moved toward its property value level. In the past, when the price reached about 90% of property value, it often rebounded, while it has struggled to maintain levels above 120% of property value.

Quarterly reports showing improved mall traffic or office occupancy have frequently preceded price increases.

Main risks

• If interest rates go up, their loan costs will increase
• Online shopping growth might hurt their mall businesses
• Work-from-home policies could reduce demand for office space

2. Mapletree Commercial Trust (MCT) - SGX: N2IU
 

Shopping mall and office specialist with Singapore's popular VivoCity as its flagship property.

What they own

• VivoCity: Singapore's largest waterfront shopping mall
• Mapletree Business City: Modern offices and business facilities
• High-quality office buildings including mTower and Bank of America HarbourFront
• Strong mix of well-known companies as tenants

Key numbers

• Expected yearly cash return: 5.5-6.5% (for 2025)¹⁰
• Current price compared to actual property value: 0.9-1.0 times¹¹
• Debt percentage: 40.3% of total assets¹²
• Growth potential: Planned improvements to existing properties

Historical price movements

Mapletree Commercial Trust shares have historically traded at a small premium above their property value because of their quality assets. Price consolidation periods after dividend announcements have often provided entry points for traders.

The stock price has frequently found support at its 200-day average price level.

Main risks

• Heavy reliance on a few large tenants
• Possible oversupply of office space in Singapore
• Competition from other malls affecting VivoCity's performance

3. Ascendas REIT (A-REIT) - SGX: A17U

Singapore's first and largest industrial property trust with an international presence.

What they own

• Over 200 industrial properties across Singapore, Australia, United States, Europe and UK
• Mix of warehouses, logistics centres, business parks and data centres
• Tenants include major technology and shipping companies
• Many properties in high-value business districts

Key numbers

• Expected yearly cash return: 5.2-6.0% (for 2025)¹³
• Current price compared to actual property value: 1.0-1.2 times¹⁴
• Debt percentage: 36.5% of total assets¹⁵
• Growth potential: Increasing demand for warehouse space and data storage

Historical price movements

Ascendas REIT shares have often moved in the same direction as technology stocks, particularly because of its business parks and data centres.

The share price has historically found support at its 50-week average price level during market downturns. After better-than-expected dividend announcements, the price has frequently shown short-term increases.

Main risks

• Currency risks from international properties
• Economic slowdowns hurting industrial demand
• Growing competition in the data centre business

4. Keppel DC REIT - SGX: AJBU

Asia's first REIT focused exclusively on data centres (buildings housing servers and network equipment).

What they own

• Data centres across Asia-Pacific and Europe
• Mix of facilities leased to single companies and those with multiple tenants
• Properties with long-term leases (average of over 7 years)
• Strategic locations to support cloud computing and internet services

Key numbers

• Expected yearly cash return: 5.0-5.5% (for 2025)¹⁶
• Current price compared to actual property value: 1.2-1.4 times1⁷
• Debt percentage: 34.8% of total assets¹⁸
• Growth potential: Increasing demand from artificial intelligence and cloud computing

Historical price movements

Keppel DC REIT shares have historically moved in correlation with technology stocks, particularly the NASDAQ index. The shares have generally traded at a premium to their property value due to growth expectations.

During tech sector corrections or when the price has fallen below its 100-day average price level, the stock has often experienced price adjustments.

Main risks

• New technologies could make current data centre designs outdated
• Rising electricity costs could reduce profit margins
• More companies entering the data centre business

5. Parkway Life REIT - SGX: C2PU

Healthcare specialist with a portfolio of hospitals in Singapore and nursing homes in Japan.

What they own

• Three major private hospitals in Singapore (Mount Elizabeth, Gleneagles, Parkway East)
• Collection of nursing homes in Japan
• Properties with long-term rental agreements and built-in rent increases
• Essential healthcare facilities that remain in demand regardless of economic conditions

Key numbers

• Expected yearly cash return: 4.5-5.3% (for 2025)¹⁹
• Current price compared to actual property value: 1.6-1.8 times²⁰
• Debt percentage: 35.4% of total assets²¹
• Growth potential: Aging populations in Singapore and Japan needing more healthcare

Historical price movements

Parkway Life REIT has historically performed well during market uncertainty periods. The shares have consistently traded at a premium to their property value due to their stable income.

In past market corrections, buying interest has often increased when the yearly cash return reached levels above 5%.

Main risks

• Changes in healthcare regulations could affect operations
• Currency risks from Japanese properties
• Potential issues when major hospital leases come up for renewal

Trade S-REITs with IG Singapore

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• Go long or short on REIT price movements
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Footnotes

_{¹ Monetary Authority of Singapore (MAS), "Guidelines for Singapore REITs," January 2025.}

_{² SGX Market Statistics, "S-REIT Market Capitalisation Report," February 2025.}

_{³ Monetary Authority of Singapore (MAS), "Financial Stability Review," December 2024.}

_{⁴ Singapore Tourism Board, "Tourism Sector Performance Forecast 2025-2030," January 2025.}

_{⁵ https://www.morganstanley.com/im/publication/insights/articles/article_acompellingopportunityinreits_a4.pdf}

_{⁶ https://www.dbs.com.sg/treasures/aics/stock-coverage/templatedata/article/equity/data/en/DBSV/012014/CICT_SP.xml}

_{⁷ https://sg.finance.yahoo.com/quote/C38U.SI/key-statistics/}

_{⁸ https://simplywall.st/stocks/sg/real-estate/sgx-c38u/capitaland-integrated-commercial-trust-shares/health}

_{⁹ CapitaLand Integrated Commercial Trust, "Annual Report," February 2025.}

_{¹⁰ https://companiesmarketcap.com/mapletree-commercial-trust/dividend-yield/}

_{¹¹ https://finance.yahoo.com/quote/N2IU.SI/}

_{¹² https://www.mapletreepact.com/~/media/MPACT/Newsroom/Press-Releases/2025/20250123_MPACT%203Q%20FY2425%20Press%20Release_V.pdf}

_{¹³ https://simplywall.st/stocks/sg/real-estate/sgx-a17u/capitaland-ascendas-reit-shares/dividend}

_{¹⁴ https://www.gurufocus.com/term/book-value-per-share/SGX%3AA17U}

_{¹⁵ https://www.wealthfor.us/reits/view/A17U%3ASGX/}

_{¹⁶ https://growbeansprout.com/quote/AJBU.SI/dividend}

_{¹⁷ https://finbox.com/SGX%3AAJBU/explorer/price_to_book/}

_{¹⁸ https://www.morningstar.com/company-reports/1275027-keppel-dc-reits-portfolio-of-data-center-assets-benefits-from-strong-secular-demand}

_{¹⁹ https://growbeansprout.com/quote/C2PU.SI/dividend}

_{²⁰ https://finance.yahoo.com/quote/C2PU.SI/}

_{²¹ https://finance.yahoo.com/quote/C2PU.SI/}

_{²² Awarded the Best Online Trading Platform by Influential Brands in 2019 and 2022.}