Core Viewpoint - Singapore's REIT sector is recovering with rising unit prices, driven by expectations of further interest rate cuts, while still presenting opportunities for passive income investors [1] Group 1: Starhill Global REIT - Starhill Global REIT focuses on prime commercial and retail assets, with a portfolio including Wisma Atria and Ngee Ann City in Singapore, and seven other properties globally [2] - For the first half of FY25/26, the REIT reported revenue of S$96.3 million, unchanged from the previous year [2] - Net property income (NPI) decreased by 0.8% YoY to S$75.1 million, primarily due to the divestment of Wisma Atria office units; excluding this, NPI would have increased by 0.1% YoY [3] - The REIT maintains a weighted average lease expiry (WALE) of 7.4 years, indicating stable cash flow for dividends, with an annualized distribution per unit (DPU) of S$0.036 [3] - At a unit price of S$0.56, the dividend yield is 6.4% [4] Group 2: Mapletree Logistics Trust - Mapletree Logistics Trust owns 174 properties across nine Asia-Pacific markets, focusing on warehouses and distribution centers [4] - For 3Q FY25/26, revenue fell by 3.1% YoY to S$176.8 million, and NPI decreased by 3.3% to S$152 million, attributed to divestments and foreign exchange headwinds [4][5] - Despite these declines, the REIT achieved a positive rental reversion of 1.1%, indicating improved leasing demand, with China operations showing significant improvement in rental reversion [5] - MLT has a trailing DPU of S$0.074, and at a unit price of S$1.24, the dividend yield is close to 6% [6] Group 3: Mapletree Industrial Trust - Mapletree Industrial Trust owns 136 technology-related industrial properties, including 13 data centers in North America [8] - For 3Q FY25/26, gross revenue declined by 8% YoY to S$163.1 million, and NPI fell by 7.8% to S$122.8 million, mainly due to divestments and lower contributions from the North American portfolio [8] - The REIT expects to benefit from the AI boom, with a record-low vacancy rate of 1.6% in primary markets, and plans to divest S$500 million to S$600 million in North American assets for high-quality data centers in Asia Pacific and Europe [9] - MIT has a trailing annual DPU of around S$0.13, with a unit price of S$2.00, resulting in a dividend yield of 6.6% [10] Group 4: United Hampshire US REIT - United Hampshire US REIT's portfolio consists of 22 assets anchored by US retail centers and supermarkets [11] - For 2025, gross revenue fell by 1.7% YoY to US$72 million, and NPI decreased by 1.7% YoY to US$49 million, while maintaining a high retention rate of 90% and a WALE of 7.7 years [11] - The REIT has divested two assets at premiums of 17.5% and 4.2% since 2024, using the funds to acquire higher-yielding assets [11] - UHREIT has a trailing annual DPU of US$0.0439, and at a unit price of US$0.52, it offers a dividend yield of 8.4% [12] Group 5: Investment Opportunities - As interest rates are expected to ease, opportunities for decent yields remain, but investors should analyze underlying assets beyond just yield [13] - Factors such as tenant performance and capital recycling efficiency are crucial for identifying REITs with sustainable growth [13] - Selecting REITs with strong fundamentals and evident growth catalysts is essential for long-term benefits [14]

Core Viewpoint - Singapore REITs have faced challenges due to high financing costs and investor sentiment but are expected to recover as interest rates decline, making it a favorable time to consider quality REITs [1][14]. Group 1: Market Overview - Singapore REITs have been under pressure for the past two years due to high interest rates and dampened investor sentiment [1]. - The outlook is likely to improve with anticipated interest rate cuts, which typically boost distributions and support asset values [1][14]. Group 2: Individual REIT Analysis - **Mapletree Pan Asia Commercial Trust (MPACT)**: - Owns properties across multiple countries and reported a DPU of S$0.0201 for 2QFY2025/2026, up 1.5% YoY [3]. - Committed occupancy fell to 88.9% from 96.4% YoY, with NPI down 2.2% YoY to S$163.9 million [4]. - VivoCity achieved 100% commitment and 14.1% rental reversion [4][5]. - **Mapletree Industrial Trust (MIT)**: - Manages S$8.5 billion in assets and reported a DPU of S$0.0318 for 2QFY2025/2026, down 5.6% YoY [6]. - Occupancy rate was 91.3%, with a weighted average rental reversion of 6.2% for its Singapore portfolio [6][7]. - Average borrowing cost declined to 3.0%, with data center demand as a long-term growth driver [7]. - **AIMS APAC REIT (AA REIT)**: - Reported a DPU of S$0.0472 for 1HFY2026, up 1.1% YoY, with portfolio occupancy at 93.3% [9]. - Achieved positive rental reversions of 7.7% in 1HFY2026 and has stable income from essential industries [10]. - **CapitaLand Ascendas REIT (CLAR)**: - DPU dipped 0.6% YoY to S$0.07477 in 1H2025, with aggregate leverage rising to 39.8% by September 2025 [11][12]. - Achieved rental reversions of 7.6% for renewed leases in 3Q2025, supported by a strong sponsor [12][13]. Group 3: Investment Outlook - Lower interest expenses are expected to boost distributable income and attract investors back to REITs [14]. - REITs with strong sponsors and quality assets are likely to lead the recovery as interest rates decline [16]. - MPACT, MIT, CLAR, and AA REIT are highlighted as potential beneficiaries of the anticipated rate cuts [16].