Core Insights - Singapore REITs faced challenges in the first half of 2025 due to high interest rates impacting financing costs and valuations, yet five REITs managed to increase their distributions per unit (DPUs) [1] Group 1: CapitaLand Integrated Commercial Trust (CICT) - CICT reported a 3.5% YoY increase in DPU to S$0.0562 for 1H2025, despite a slight revenue decline of 0.5% to S$787.6 million [2] - Net Property Income (NPI) decreased by 0.4% to S$579.9 million, but distributable income rose 12.4% YoY to S$411.9 million, aided by the ION Orchard acquisition and lower interest expenses [3] - Committed occupancy was high at 96.3% as of 30 June 2025, with retail and office portfolios achieving rental reversions of 7.7% and 4.8%, respectively [3] - CICT is optimistic about asset management enhancement initiatives costing S$61 million, targeting a 7% return on investment [4] - The acquisition of a 55% stake in CapitaSpring's office tower is expected to strengthen CICT's position in Singapore's office market [4][5] Group 2: Keppel DC REIT - Keppel DC REIT, focused on data centres, reported a 34.4% YoY revenue increase to S$211.3 million for 1H2025, with NPI rising 37.8% to S$182.8 million [6] - DPU increased by 12.8% YoY to S$0.05133, driven by strong portfolio performance and contributions from acquisitions [6] - The REIT achieved a 51% positive rental reversion, with portfolio occupancy at 95.8% and a weighted average lease expiry (WALE) of 6.9 years [7] - An acquisition of Tokyo Data Centre 3 for JPY82.1 billion (approximately S$707 million) was announced, fully leased to a global hyperscaler [8] Group 3: Elite Commercial REIT - Elite UK REIT declared a 10% YoY increase in DPU to GBP 0.0154 (S$0.027) as of 30 June 2025, with portfolio occupancy at 95.0% [9] - The REIT's WALE is 2.9 years, focusing on long leases with government tenants, providing a stable income stream [10] Group 4: AIMS APAC REIT - AIMS APAC REIT reported a DPU of S$0.096 for the fiscal year ending 31 March 2025, a 2.6% increase YoY [11] - Overall portfolio occupancy was 93.7%, or 96.5% on a committed basis, with a WALE of 4.4 years [12] - The REIT is actively enhancing its portfolio through asset upgrades and strategic divestments, benefiting from demand for high-spec logistics and industrial space [13] Group 5: Suntec REIT - Suntec REIT's DPU increased by 3.7% YoY to S$0.03155 for 1H2025, with committed occupancy at 99% for the office division and 98% for retail [15] - The REIT experienced favorable rent reversion rates of 10% for office and 17.2% for retail, with positive rental reversion of 22.9% in Australia [15][16] - Management's proactive leasing efforts are expected to maintain resilience in Suntec City Mall despite slight dips in shopper traffic [16] Group 6: Overall Trends - The five REITs showcased resilience amid interest rate pressures, with positive rental reversions and strategic portfolio management contributing to distribution growth [17] - Focus on REITs with strong operational metrics, active management strategies, and high occupancy rates is emphasized for income investors [18]