3 Blue-Chip Singapore REITs Report Earnings: What You Need to Know

Industry Overview - Singapore's REITs are showing divergent performance across different sectors, with each facing unique opportunities and risks [1] - The latest earnings results provide insights for investors on portfolio positioning amid current property trends and a rate-cut cycle [1] CapitaLand Integrated Commercial Trust (CICT) - CICT reported a resilient third-quarter performance with net property income increasing by 1.6% YoY, driven by strong rental reversions of 7.8% in retail and 6.5% in office segments [2][3] - Retail segment benefited from a 24.8% increase in shopper traffic YTD [2] - Portfolio occupancy remains robust at 97.2%, with a weighted average lease to expiry (WALE) of 3.2 years [3] - Tenant sales YTD increased by 19.2% YoY [3] - Financing costs are declining, with an average cost of debt at 3.3%, and 74% of total borrowings are fixed-rate [4] - CICT issued a S$300 million note with a low annual coupon rate of 2.25%, indicating a strong credit profile [4] - Management anticipates steady growth in distributable income, supported by new asset contributions and enhancement initiatives [5] Mapletree Logistics Trust (MLT) - MLT reported mixed earnings for 2QFY25/26, with net property income declining by 3.3% YoY to S$153.3 million due to foreign exchange impacts and divestments [6] - Distribution per unit (DPU) decreased by 10.5% YoY to S$0.0185 per share [6] - Occupancy rate improved to 96.1%, with a positive rental reversion of 0.6% for the overall portfolio [7] - DPU from operations stabilized at S$0.01815, up 0.2% quarter-on-quarter but down 4.8% YoY [8] - MLT maintains a stable WALE of 2.7 years and an aggregate leverage ratio of 41.1% [8] - The REIT has hedged 75% of its distributable income for the next 12 months in SGD [8] - Management focuses on steady rental income and healthy occupancy rates while adjusting the portfolio for shareholder value [9] Keppel Infrastructure Trust - Keppel reported strong financials for 9M2025, with distributable income soaring by 59.2% YoY to S$168.9 million, excluding divestment gains [10] - The Distribution and Storage segment saw funds from operations (FFO) rise by 29% to S$66.4 million, driven by a 60% increase in its Ixom business [11] - Other segments, such as Energy Transition and Environmental Services, faced declines in FFO, with Energy Transition down 12% YoY and Environmental Services down 36.5% YoY [11][12] - Keppel remains lowly leveraged with a net gearing of 38% and a solid interest coverage ratio (ICR) of 13.1 times [12] - Management plans to leverage sustainable infrastructure themes and has S$301 million for redeployment, with S$119 million earmarked for a proposed acquisition [13]