4 REITs That Could Benefit From Singapore’s S$5B Equity-Market Push

Core Insights - The Monetary Authority of Singapore (MAS) is injecting S$5 billion into the equity market to enhance liquidity and attract investors [1] - Real Estate Investment Trusts (REITs) are expected to benefit from this liquidity push, particularly four established names with strong fundamentals [1] Group 1: Suntec REIT - Suntec REIT owns a diversified portfolio of office and retail properties across Singapore, Australia, and the UK, and has historically traded at a discount during weak market conditions [2] - Committed occupancy rates are strong at 98.5% for Singapore offices and 99.3% for retail, with robust rental reversion rates of 8.5% for Singapore offices and 8.6% for retail [3] - Distribution per unit (DPU) for 3Q2025 increased by 12.5% year on year to S$0.01778, supported by lower financing costs and improved performance [4] Group 2: Keppel REIT - Keppel REIT holds a portfolio of Grade A offices in Singapore, Australia, Japan, and South Korea, with strong rental reversions supported by resilient leasing demand [5] - Committed occupancy increased to 96.3%, while rental reversions for the nine months ended September 2025 were strong at 12% [6] - The REIT trades at a price-to-NAV ratio of around 0.86x, indicating market concerns over near-term distribution growth despite solid operational fundamentals [7] Group 3: ESR-LOGOS REIT - ESR-LOGOS REIT owns industrial and logistics properties across Singapore, Australia, and Japan, with a focus on high-demand sectors driven by e-commerce growth [8] - Occupancy stood at 90.3%, reflecting successful lease-up efforts, and the average cost of debt declined to 3.40% per annum [9] - The REIT is executing a "4R" strategy to enhance portfolio quality through capital recycling [10] Group 4: CapitaLand India Trust - CapitaLand India Trust provides exposure to India's IT and business park sectors, with committed occupancy at 91% and strong rental reversions of 15% for the quarter [11][12] - Gearing improved to 40.9%, reflecting modest deleveraging after divesting non-core assets [12] - The average cost of debt is 5.8%, with a significant portion of borrowings on fixed rates [13] Group 5: Market Implications - The S$5 billion liquidity push is expected to lift the broader REIT sector, potentially narrowing valuation discounts and increasing institutional participation [15] - Focus on quality REITs with healthy balance sheets and stable distributions is recommended, as enhanced liquidity may provide tailwinds for well-managed trusts [16]