S-Reits earnings season kicks off, with 37 trusts scheduled to report their results in coming weeks

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 last week.

Another 30 S-Reits have also announced that their latest earnings will be scheduled for release between Jul 28 and Aug 14.

Among the 37 S-Reits, 31 are reporting quarterly or half-year financial results, four will provide quarterly business updates, and two will provide full-year financial results.

Sabana Industrial Reit, Digital Core Reit, Mapletree Logistics Trust (MLT) and OUE Reit kicked off the current earnings season last Wednesday (Jul 23), followed by Suntec Reit and Frasers Centrepoint Trust (FCT) on Thursday (Jul 24), as well as Keppel DC Reit on Friday.

Of the Reits that have announced their earnings so far, most have reported stable operating performances, with some improvements in distributions per unit (DPU) observed in the latest reporting period.

Reit managers, however, remain watchful over the impact of trade tensions and tariffs going forward and are focused on portfolio and capital management efforts while eyeing opportunities.

Sabana Reit’s DPU rose 26.9 per cent year on year to S$0.017 in H1 2025, on the back of higher gross revenue and net property income (NPI).

The manager said that the strong performance was supported by improved occupancy at certain properties and positive rental reversions across the portfolio.

However, it noted that rising geopolitical tensions, the uncertain trade outlook, and cost pressures are headwinds, and its priority is to optimise portfolio occupancy rate while mitigating operational costs to attract and retain cost conscious tenants.

Elsewhere, Digital Core Reit reported stable DPU of US$0.018 in the first half of 2025, amid higher gross revenue and NPI. The Reit manager noted that data centre fundamentals continue to tighten across core global markets, and it remains focused on capitalising on the favourable industry backdrop to create durable value for unitholders.

In the first half of 2025, Digital Core Reit repurchased a total of 1.8 million units at an average price of US$0.565, generating DPU accretion of approximately 0.1 per cent. The units were held as treasury units and were subsequently cancelled.

OUE Reit reported a 5.4 per cent improvement in DPU for the first half of 2025, following a significant decline in finance costs, which fell 17.3 per cent on year. The Reit’s revenue and NPI fell slightly during the period on a like-for-like basis as its resilient Singapore commercial portfolio partially offset lower hospitality contributions.

OUE Reit’s manager noted that its disciplined capital management, coupled with the decline in the Singapore Overnight Rate Average (Sora), has enabled the lower financing costs, supporting DPU growth.

Other S-Reits with Singapore assets have also noted improvements in their financing costs.

Suntec Reit reported a 3.7 per cent improvement in DPU for H1, with its Singapore office, retail and convention portfolios continuing to deliver strong operating performances.

The manager also noted that financing costs for Suntec Reit declined amid refinancing efforts, as well as the paring down of debt with divestment proceeds from Suntec strata office units.

Similarly, FCT said that its cost of debt was improving, declining to 3.7 per cent in Q3 2025, down from 4.1 per cent a year earlier.

The Reit’s committed occupancy remained stable and high, at 99.9 per cent, with shopper traffic and tenants’ sales improving 2.1 per cent and 4.4 per cent respectively, compared to the prior-year period.

Its manager also noted that limited supply and healthy demand continue to underpin the Singapore suburban retail market.

Elsewhere, MLT reported stable operating metrics with 95.7 per cent occupancy and 2.1 per cent positive rental reversions.

Revenue and NPI fell 2.4 per cent and 2.1 per cent, respectively, on year, mainly due to foreign exchange impact and loss of contribution from 12 divested properties. On a constant currency basis, the portfolio’s operational performance was stable.

Excluding divestment gains, DPU from operations rose 0.5 per cent quarter on quarter, reflecting stable operational performance. However, its DPU was lower year on year, amid weaker regional currencies and the absence of a one-off divestment gain. 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 monthly S-Reits & Property Trusts Chartbook.