As we move through February 2026, the Singapore REIT (S-REIT) sector remains a cornerstone for income-seeking investors. However, the narrative is shifting. No longer is it just about surviving high interest rates; it is now about which managers are successfully “recycling” capital and pivoting their portfolios to meet new structural challenges.We examine three heavyweights in the retail and commercial space and what you need to know about your dividends.CapitaLand Integrated Commercial Trust (SGX: C38U) [C ...

Core Insights - December 2025 marks a significant distribution period for Singapore REIT investors, with over S$400 million being distributed from four major REITs, indicating a strong presence in the market despite ongoing operational challenges [1] Group 1: Mapletree Pan-Asia Commercial Trust (MPACT) - MPACT increased its distribution per unit (DPU) by 1.5% year on year to S$0.0201 for 2QFY2026, marking the first increase in three years, driven by lower operating expenses and finance costs [2] - VivoCity, a key asset, reported a 14.1% rental reversion, with shopper traffic up 0.6% to 21.9 million and tenant sales growing 3.5% to nearly S$520 million, although it cannot sustain the REIT alone [3] Group 2: Mapletree Industrial Trust (MIT) - MIT's DPU declined by 5.6% year on year to S$0.032 in 2QFY2026, with a more modest underlying decrease of 2.2% after adjusting for last year's one-off divestment gain [5] - The REIT completed strategic divestments totaling S$535.3 million in Singapore at a premium of 22.1% over original cost, alongside a US$11.8 million divestment for a Georgia data center at almost 64% above the purchase price [5] - North American portfolio occupancy is at 87.8%, negatively impacting overall performance despite strong demand in the data center market [6] Group 3: Mapletree Logistics Trust (MLT) - MLT's DPU fell by 10.5% year on year to S$0.01815 for 2QFY2026, with a 4.8% decline from operations after excluding last year's divestment gains [8] - The REIT aims for S$100 to S$150 million in divestments for FY2026 to reinvest in modern assets with higher growth potential, although rental reversions in China remain a concern [9] Group 4: Frasers Logistics & Commercial Trust (FLCT) - FLCT's revenue grew by 5.6% to S$471.5 million, but a 26.4% increase in finance costs led to a 12.5% decline in DPU to S$0.0595 [10] - The logistics portfolio shows strength with 99.7% occupancy and 39.6% rental reversion, but occupancy in some areas remains below 90% [11] Group 5: Overall Market Sentiment - The distributions in December 2025 highlight the ongoing operational headwinds faced by Singapore REITs, with various strategies being employed to maintain payouts [12] - The key concern for investors is whether these REITs can achieve genuine distribution growth moving forward [13]