Core Insights - The earnings season is approaching, with three blue-chip REITs set to report, providing a financial health check for dividend investors [1][2] - Each REIT faces unique challenges and opportunities, impacting their distribution sustainability and growth potential [2] CapitaLand Integrated Commercial Trust (CICT) - CICT is reporting on 28 October 2025, managing S$26 billion in assets, with a focus on the contribution from ION Orchard [3] - For the first half of 2025, CICT's Distribution Per Unit (DPU) increased by 3.5% year-on-year to S$0.056, aided by ION's contribution and lower interest costs [3] - Key metrics to watch include rental reversion momentum, which showed 7.7% for retail and 4.8% for office in 1H'25, and the impact of the acquisition of a 55% stake in CapitaSpring [4][5] Mapletree Logistics Trust (MLT) - MLT is also reporting on 28 October 2025, facing a 12.4% year-on-year DPU decline due to currency headwinds and challenges in China [6] - The trust manages S$13 billion in assets across 178 properties, with a critical focus on stabilizing distributions amid regional currency pressures [6] - Key signals to monitor include the negative 7.5% rental reversion in Mainland China and the overall occupancy rate of 93.0% [7][8] Mapletree Industrial Trust (MIT) - MIT is set to report on 30 October 2025, with a 4.7% DPU decline in 1Q'FY26, which is less severe when excluding divestment gains [9] - The trust, valued at S$9 billion, has a significant focus on data centers, with 54.8% of its portfolio allocated to this sector [10] - Important factors include the lease-up progress of the Osaka data center, Singapore's strong rental reversion of 8.2%, and the impact of capital recycling from recent divestments [11][12] Interest Rate Environment - All three REITs are positioned to benefit from falling interest rates, with CICT's borrowing costs dropping to 3.4% in 1H'25 [15] - The decline in interest rates is crucial for REITs with significant debt, as it can enhance distributable income [16][17] - Monitoring interest coverage ratios and the weighted average cost of debt will be essential in assessing the impact of this trend on future distributions [16][17]