Core Viewpoint - Investing in Singapore REITs (S-REITs) can provide stable and reliable passive income for investors, with a focus on distribution yield, asset quality, and strong execution. Group 1: Frasers Logistics & Commercial Trust (FLCT) - FLCT's portfolio consists of 113 properties valued at S$6.9 billion, with significant exposure in Australia (45.6%) and Germany (26.2%) [2] - Revenue increased by 5.6% year-on-year to S$471.5 million in FY2025, but distributable income fell by 12.1% to S$224.7 million due to higher finance costs, leading to a DPU decline of 12.5% to S$0.0595 [3][4] - The REIT maintains a high occupancy rate of 95.1% and a WALE of 4.8 years, with a gearing ratio of 35.7% and an interest coverage ratio of 4.3 [4] - FLCT's distribution yield stands at 6.3%, significantly higher than the STI's yield of around 4%, despite a declining DPU trend over the past four years [4] - Future growth potential is indicated by a rental reversion rate of nearly 30% and 83.1% of leases having inflation-linked indexation or fixed escalations [5] Group 2: ParkwayLife REIT (PLife REIT) - PLife REIT focuses on healthcare properties, with a portfolio valued at S$2.46 billion, where Singapore properties account for 65% of the value [7] - Revenue grew by 8.2% year-on-year to S$117.3 million in 9M 2025, driven by acquisitions in Japan and France [8] - Distributable income and DPU increased by 10.4% and 2.3% year-on-year to S$75.4 million and S$0.1156, respectively [8] - The REIT has a healthy gearing ratio of 35.8% and an excellent interest coverage ratio of 8.9, with a low cost of debt at 1.57% [9] - PLife REIT's distribution yield is 3.7%, lower than the STI's yield, but it has consistently grown its DPU since its IPO in 2007 [10] - Tenant concentration risk exists, as Parkway Hospitals Singapore contributes 60% of gross revenue, but a long-term master lease mitigates some risks [10][11] Group 3: Investment Implications - With potential interest rate declines, reliable REITs can anchor an investor's income portfolio, emphasizing the importance of property quality, prudent leverage, and capable management [13] - Investors should prioritize consistency in income over merely high yields, focusing on a balanced mix of quality REITs to navigate market volatility [14]

Market Overview - The market is at a record high, raising concerns among investors about valuations outpacing fundamentals [1] - Despite market rallies, certain REITs are still presenting attractive dividend yields above 6% [1] Frasers Logistics & Commercial Trust (FLCT) - FLCT focuses on logistics and commercial properties across developed markets including Singapore, Australia, and the UK [2] - The share price has faced pressure due to higher borrowing costs, leading to a 13.8% year-on-year decline in distribution per unit (DPU) to S$0.03 for the half year ended 31 March 2025 [2][3] - FLCT currently offers a distribution yield of 6.7%, with potential upside as interest rates may taper down [3] - The overall portfolio occupancy rate is 93.9%, with logistics & industrial at 99.6% and commercial at 84.1% as of 1HFY25 [3][4] - The weighted average lease expiry (WALE) is 4.6 years for the overall portfolio [4] Mapletree Industrial Trust (MIT) - MIT is an industrial-focused REIT with exposure to data centres and high-specification properties [5] - For the first quarter ended 30 June 2025, MIT's DPU decreased by 4.7% year-on-year to S$0.0327, primarily due to the absence of prior year's divestment gain [5][6] - MIT maintains a dividend yield of around 6.3%, supported by stable rental demand, particularly from data centres [6] - The average portfolio occupancy rate is stable at 91.4%, with a WALE of 4.5 years [6] Mapletree Logistics Trust (MLT) - MLT is a pan-Asian logistics REIT with a diverse portfolio across several countries [9] - For the first quarter ended 30 June 2025, MLT's DPU fell by 12.4% year-on-year due to currency fluctuations, divested assets, weaker performance in China, and higher financing costs [9][10] - The portfolio occupancy rate is 95.7%, with a positive rental reversion of 2.1% [9][10] - MLT's aggregate leverage ratio is steady at 41.2%, with a weighted average borrowing cost of 2.7% per annum [10] Investment Considerations - The REIT sector continues to offer stability and attractive yields, with distribution yields above 6% providing a buffer against market volatility [11][12] - Investors are advised to consider balance sheet strength and asset quality alongside yield when selecting REITs [12] - Established REITs like FLCT, MIT, and MLT are noted for their attractive dividend payouts supported by strong fundamentals [12]