S-Reits’ DPU may rise in FY2025 as interest costs peak

[SINGAPORE] High financing costs continue to weigh on Singapore-listed real estate investment trusts (S-Reits) in the latest round of financial results, but analysts believe there is room for their distribution per unit (DPU) to rise in FY2025, with interest costs peaking.

Distributable income and DPU continued to fall for the majority of S-Reits in the latest reporting season.

Of the 34 S-Reits and property trusts that disclosed their financial information for the period ended Dec 31, 2024, 19 posted declines in distributions and 21 reported lower DPUs, data compiled by The Business Times showed.

Performance was mixed when it came to revenue growth, with a fairly even split between those which posted higher revenue growth and those that did not.

The results, analysts said, were in line with expectations.