Core Insights - The earnings season has commenced with three Singapore dividend-paying stocks reporting their latest results, namely Frasers Centrepoint Trust, Keppel DC REIT, and Mapletree Pan Asia Commercial Trust [1][2] Frasers Centrepoint Trust (FCT) - FCT is set to report on 22 October 2025, managing S$7.1 billion in assets across nine suburban malls with a total retail space of 2.7 million square feet [3] - The REIT maintained a high occupancy rate of 99.5% for the first half of FY25, with a year-on-year increase in shopper traffic by 1.0% and tenant sales by 3.3% [4] - FCT achieved a positive rental reversion of 9% for 1H'FY25, up from 7.5% the previous year, indicating strong demand for its properties [4] - Gross revenue rose 7.1% year on year to S$184.4 million, while net property income increased 7.3% to S$133.7 million, with distribution per unit (DPU) edging up 0.5% to S$0.060 [5] - FCT is acquiring Northpoint City South Wing for S$1.133 billion, expected to complete in 2H'FY25, which is anticipated to be DPU-accretive [6] Keppel DC REIT - Keppel DC REIT will report on 24 October 2025, owning 24 data centres across 10 countries with assets under management of approximately S$5.0 billion [7] - The REIT's gross revenue surged 34.4% year on year to S$211.3 million, and net property income jumped 37.8% to S$182.8 million for 1H'25 [8] - DPU rose 12.8% year on year to S$0.05133, reflecting strong operational performance, with a portfolio occupancy of 95.8% [9] - The REIT achieved a remarkable rental reversion of around 51%, including over 50% for a major contract renewal [9] - Keppel DC REIT is acquiring a 98.47% stake in Tokyo Data Centre 3 for approximately S$707 million, which is expected to be 2.8% DPU-accretive on a pro forma 2024 basis [10] Mapletree Pan Asia Commercial Trust (MPACT) - MPACT will report on 23 October 2025, managing S$15.7 billion in assets across 17 retail and commercial properties [12] - VivoCity recorded a rental reversion of 14.7% with tenant sales rising 2.1%, while shopper traffic dipped 1.3% [13] - Festival Walk in Hong Kong saw shopper traffic increase by 7.8% but tenant sales fell by 3.2% [13] - MPACT's DPU decreased by 3.8% year on year, with a portfolio occupancy of 89.3%, down from 94% a year ago [14]

Singapore REITs faced headwinds for most of the first half of 2025, with pressure from elevated high interest rates, which raised financing costs and weighed on valuations. Yet, five REITs managed to deliver higher distributions per unit (DPUs), demonstrating resilient portfolio management and strong operational fundamentals. Here’s how these five REITs rewarded investors even in a challenging macroeconomic environment.CapitaLand Integrated Commercial Trust (CICT, SGX: C38U)CapitaLand Integrated Commercial ...

Core Insights - Keppel Ltd. has experienced a 29% year-to-date increase in share price due to strong business execution and a strategic shift from a conglomerate model to an asset-light global alternative real asset manager focusing on digital and green energy infrastructure [1][2] Business Transformation - The company is divesting legacy businesses and assets, reallocating proceeds into recurring income-generating assets such as data centers, renewables, and sustainable infrastructure, which aligns with long-term growth trends [2] - Keppel's urban development projects span multiple countries, providing a long-term pipeline for growth [9] Financial Performance - In 1H2025, Keppel reported a 5% year-on-year decrease in revenue to S$3.06 billion, while net profit surged 24% year-on-year to S$378 million [3] - Recurring income (excluding non-core portfolio for divestment) increased by 7.2% year-on-year to S$444 million [3] - The Real Estate segment saw a 45% year-on-year revenue increase to S$95 million, with net profit of S$98 million due to higher asset management fees and lower costs [4] - Infrastructure revenue declined 12% year-on-year to S$2.0 billion, accounting for 65.7% of total revenue, while net profit decreased 5% year-on-year to S$346 million [5] - Connectivity revenue increased 14% year-on-year to S$743 million, but net profit fell 19% year-on-year to S$57 million due to lower valuation gains [6] Growth Drivers - Singapore's Green Plan 2030 aims for 80% green buildings and increased solar energy, indicating a growing demand for green energy infrastructure [7] - As of 1H2025, Keppel has S$91 billion in funds under management, with S$25 billion undeployed, and secured an additional S$2.3 billion from institutional investors for investment in data centers and sustainable urban renewal [8] Debt and Dividends - Keppel's net debt stood at S$9.9 billion as of June 30, 2025, with a net gearing ratio of 0.9 times [13] - A dividend of S$0.15 per share was declared for 1H2025, translating to a yield of approximately 3.9% at the current share price of S$8.82 [13] Market Outlook - The company's successful transition and execution are critical for maintaining share price momentum, with current valuation at 17.8 times trailing earnings [14] - Continuous execution is necessary for Keppel to compound value in its new growth pillars [15]

Core Insights - The REIT sector is appealing for income investors due to its requirement to distribute at least 90% of earnings for tax benefits, making it essential to evaluate the growth of these distributions in line with inflation [1] Group 1: CapitaLand Integrated Commercial Trust (CICT) - CICT has a portfolio of 26 properties with an AUM of S$25.9 billion as of 31 December 2024, supported by its sponsor CapitaLand Investment Limited [3][4] - For 1H 2025, CICT reported gross revenue of S$787.6 million, a decrease of 0.5% year on year, while net property income (NPI) fell by 0.4% to S$579.9 million [5] - The distribution per unit (DPU) increased by 3.5% year on year to S$0.0562, with a recent acquisition of a 55% interest in CapitaSpring's office tower expected to raise pro-forma DPU to S$0.0568 [5][6] Group 2: Frasers Centrepoint Trust (FCT) - FCT manages a portfolio of nine suburban malls and an office building, with an AUM of approximately S$7.1 billion as of 30 June 2025, backed by Frasers Property Limited [7] - FCT's DPU increased by 0.5% year on year to S$0.06054, supported by a 7.1% rise in gross revenue to S$184.4 million [9] - The recent acquisition of Northpoint City South Wing for S$1.17 billion is expected to boost FY2024 DPU by 2% [8][9] Group 3: Mapletree Logistics Trust (MLT) - MLT has a portfolio of 178 properties with an AUM of S$13 billion as of 30 June 2025, sponsored by Mapletree Investments Pte Ltd [10] - For 1Q FY2026, MLT reported a gross revenue decline of 2.4% year on year to S$177.4 million, with DPU down 12.4% to S$0.01812 [11] - MLT is actively involved in capital recycling, selling older assets and redeveloping properties to enhance its portfolio [11][12] Group 4: Digital Core REIT (DCR) - DCR focuses on data centres with a portfolio of 11 properties and an AUM of US$1.7 billion, achieving a high occupancy rate of 98% as of 30 June 2025 [13] - For 1H 2025, DCR's gross revenue surged by 84.2% year on year to US$88.9 million, while NPI increased by 52.2% to US$46.3 million [14] - Despite flat DPU year on year at US$0.018 due to higher finance costs, DCR maintains a leverage ratio of 38.3%, allowing for potential future acquisitions [14]

Group 1: DBS Group Holdings Ltd - DBS Group Holdings Ltd is up 17.8% year to date (YTD) and reported solid results for the second quarter of 2025, with net interest income (NII) remaining resilient despite expected interest rate cuts [2][3] - The bank experienced strong deposit growth of 5% year on year (YoY) in the first half of 2025 and proactive hedging against lower rates [3] - Fee income from wealth management grew 25.3% YoY to S$649 million, contributing 46.5% of total fee income [3][4] Group 2: SATS Ltd - SATS Ltd is down approximately 10.4% YTD, but global travel demand is projected to grow at 6.5% YoY in 2025, which may aid in recovery [5] - Following the acquisition of Worldwide Flight Services (WFS), SATS's total income increased 5% YoY to S$5.7 billion, with net interest income up 2% YoY to S$3.6 billion [6] - The company declared a dividend per share of S$0.75 for 2Q 2025, with an ordinary dividend increase of 11% compared to the previous year [6][8] Group 3: Genting Singapore Ltd - Genting Singapore Ltd's shares are relatively unchanged YTD, with lackluster results in the first half of 2025 due to renovation disruptions and temporary closures [9][14] - The company is expected to benefit from a rise in international visitor arrivals, particularly from Chinese tourists, which could boost its premium gaming market [10] - A final dividend of S$0.02 per share was declared, unchanged from the previous year, despite a decline in gaming revenue by 12.3% YoY [14] Group 4: Singtel - Singtel is up 40.5% YTD, driven by recovery in mobile and roaming services, alongside growth in data centres and regional associates [11] - The company plans to invest S$2.5 billion in capital expenditures, with S$1.7 billion allocated for core expenditure and S$0.8 billion for data centres [12] - Singtel's underlying net profit for dividend payout increased 14% YoY to S$686 million, with a total core dividend of S$0.123 per share, representing a 2.8% yield [15][16]