Which Singapore REITs Are Poised for Growth This Year?

Singapore’s REITs sector is showing promising signs of growth in 2025, supported by a recovering economy, easing interest costs, and strong demand in industrial and data centre properties. Analysts anticipate that this environment will create attractive opportunities for investors seeking stable income and capital appreciation. Below, we highlight some of the key REITs poised for growth this year, along with the factors driving their performance.

1. Keppel DC REIT: Riding the Digital Economy Wave

Keppel DC REIT is a standout in the data centre sector, managing cutting-edge facilities that support cloud computing, AI, and other digital services. After a challenging 2023, it has rebounded strongly, benefiting from the growing demand for digital infrastructure (SingSaver).

Why It’s Poised for Growth: The increasing reliance on digital services and data storage fuels demand for Keppel’s high-spec data centres.
Investor Insight: With the US Federal Reserve expected to cut rates, borrowing costs for REITs like Keppel DC REIT are likely to fall, enhancing profitability.

2. Mapletree Industrial Trust (MIT): Strategic Pivot to New Economy Assets

MIT has shifted its portfolio focus towards data centres and high-tech industrial properties, now representing about 50% of its assets. Its portfolio occupancy improved to 92.9% in 2024, with strong rental revision rates reflecting solid tenant demand (SingSaver).

Growth Drivers: High demand from IT, biomedical, and tech sectors supports occupancy and rental growth.
Outlook: Analysts expect MIT to continue benefiting from Singapore’s manufacturing and technology growth, underpinning stable cash flows (FSMOne).

3. Capitaland Ascendas REIT (CLAR): Industrial and Logistics Strength

As Singapore’s largest business and industrial REIT, CLAR owns a diversified portfolio across Singapore, Australia, the US, and Europe. Its planned redevelopment of a UK data centre to triple capacity aims to attract hyperscale tenants, positioning it well for future growth (SingSaver).

Why Watch: Expansion into high-demand logistics and data centre assets aligns with global trends towards e-commerce and cloud services.
Market Position: CLAR’s scale and geographic diversification offer resilience amid market volatility (SBR).

4. CapitaLand Integrated Commercial Trust (CICT): Commercial Property Resilience

CICT has demonstrated strong asset growth and rental reversion, with net property income up 3.4% in 2024. Its commercial mixed-use portfolio benefits from Singapore’s recovering office and retail sectors (Business Times).

Key Strengths: High-quality assets in prime locations and active asset enhancement initiatives.
Investor Appeal: Institutional inflows into CICT signal confidence in its growth trajectory.

5. Frasers Centrepoint Trust (FCT): Retail Sector Optimism

Despite some challenges in retail spending, FCT posted positive rental reversions and asset growth in 2024. Analysts remain optimistic about retail REITs recovering alongside consumer spending improvements (Business Times).

Growth Potential: Strategic asset management and selective divestments enhance portfolio quality.
Market Outlook: Expected recovery in tenant sales supports rental growth prospects.

6. Market and Economic Outlook Supporting REIT Growth

Singapore’s economy is projected to grow around 3% in 2025, with manufacturing and technology sectors driving expansion (FSMOne). Additionally, anticipated US Federal Reserve rate cuts and stabilizing borrowing costs will likely benefit REITs by lowering financing expenses (SBR).

Valuation: Many Singapore REITs currently trade at attractive price-to-book ratios and offer yields above long-term averages (SBR).
Sector Preferences: Industrial and data centre REITs are favored for their defensive qualities and growth potential, while office REITs show signs of recovery.

Conclusion

2025 presents a favorable environment for Singapore REITs, especially those focused on industrial, data centre, and commercial assets. Leading REITs like Keppel DC REIT, Mapletree Industrial Trust, Capitaland Ascendas REIT, and CapitaLand Integrated Commercial Trust are well-positioned to capitalize on economic growth, stabilizing interest rates, and sector-specific demand. Retail investors seeking exposure to Singapore’s real estate market should consider these opportunities while monitoring macroeconomic developments.

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