4 REITs That Raised Distributions in 2025

Core Viewpoint - The real estate investment trust (REIT) sector is experiencing a recovery in 2025 as interest rates decline, with stronger fundamentals and cost management expected to lead the resurgence of certain REITs [1][2]. Group 1: Frasers Centrepoint Trust (FCT) - FCT focuses on suburban retail, deriving 54% of its gross rental income from essential product and service tenants, and reported a 0.6% year-on-year increase in distribution per unit (DPU) to S$0.12113 for FY2025 [3][6]. - The increase in DPU was driven by higher gross rental income from the acquisition of Northpoint City South Wing, with a committed occupancy rate of 98.1% and a rental reversion of 7.8% [4][5]. - FCT is enhancing its portfolio by acquiring high-performing assets and achieving over 80% leasing pre-commitment for its Asset Enhancement Initiative at Hougang Mall [5][6]. Group 2: AIMS APAC REIT (AA) - AA REIT's portfolio includes logistics and industrial properties, reporting a 1.1% year-on-year increase in DPU to S$0.0472 for 1HFY2026, with an occupancy rate of 93.3% and a rental reversion of 7.7% [7][10]. - Aggregate leverage rose to 35.0% as of 30 September 2025, while the blended debt funding cost decreased to 4.2% [8][10]. - The REIT's disciplined capital management and strategic acquisitions position it well for income growth as the economy recovers [10]. Group 3: Keppel DC REIT - Keppel DC REIT reported an 8.8% year-on-year increase in DPU to S$0.0767 for 9M2025, supported by contributions from recent acquisitions and a stable portfolio occupancy of 95.8% [11][12]. - The REIT's gross revenue and net property income surged by 37.7% and 42.2% year-on-year, respectively, with an aggregate leverage ratio of 29.8% [12][13]. - Growth catalysts include AI-driven demand and upcoming acquisitions, enhancing its position as a reliable dividend stock in the digital space [12][13]. Group 4: Mapletree Pan Asia Commercial Trust (MPACT) - MPACT reported a DPU of S$0.0201 for 2QFY2026, a 1.5% year-on-year increase, supported by strategic portfolio optimization and a 16.4% reduction in finance expenses [14][15]. - The aggregate leverage ratio improved to 37.6%, indicating sound debt management, while the focus on Singapore assets is expected to drive future growth [15]. - The post-merger strategy is yielding results, with sustained rate cuts anticipated to further support recovery [15]. Group 5: Market Outlook - As interest rates fall, REITs benefit from reduced financial pressures, with rising distributions indicating confidence in sustainable growth [18][20]. - Investors are encouraged to focus on quality REITs with visible income growth and manageable gearing, as selective ownership of resilient REITs could yield both dividend income and capital appreciation [19][20].