Retail S-Reits see lower cost of debt and positive rental reversions as retail sales improve

[singapore] Seven Singapore-listed real estate investment trusts (S-Reits) with local retail assets have posted mixed results in revenue and net property income. Retail S-Reits’ debt costs fell with lower interest rates, while rising consumer traffic drove positive rental reversions.

The seven are: CapitaLand Integrated Commercial Trust (CICT), Frasers Centrepoint Trust (FCT), Lendlease Global Commercial Reit (LReit), Mapletree Pan Asia Commercial Trust (MPACT), OUE Reit, Starhill Global Reit and Suntec Reit. Here is a look at their recent business updates and financials:

CICT

CICT reported a 0.5 per cent dip in revenue and 0.4 per cent decline in net property income (NPI) for the first half of 2025, mainly due to the sale of 21 Collyer Quay. Excluding that property, both would have risen by 1.4 and 1.7 per cent, respectively. Distribution per unit (DPU) rose 3.5 per cent to S$0.0562. Capital management improved, with leverage and debt costs reduced to 37.9 and 3.4 per cent, respectively.

Portfolio occupancy remained steady at 96.3 per cent, down just 0.1 per cent quarter on quarter. Rental reversions grew by 4.8 per cent for office and 7.7 per cent for retail, as tenant sales grew 17.9 per cent year on year (yoy).

CICT also raised S$600 million through a private placement to acquire the remaining 55 per cent stake it does not own in CapitaSpring. The deal was 4.9 times oversubscribed at S$2.11 per unit and is expected to be DPU accretive, reinforcing the Reit’s focus on core domestic assets.

FCT

FCT recorded a committed occupancy rate of 99.9 per cent in the third quarter of 2025, representing an increase of 0.4 per cent compared with the previous quarter. Shopper traffic rose by 2.1 per cent, and tenants’ sales increased by 4.4 per cent yoy.

Capital management showed mixed results: aggregate leverage went up by 0.8 per cent to 40.4 per cent with perpetual securities, while cost of debt fell by 0.1 per cent to 3.7 per cent. The Reit’s Hougang Mall began asset enhancement initiative works in April 2025, reaching approximately 74 per cent leasing pre-commitment with new concepts introduced to the mall.

LReit

LReit posted a 1.9 per cent rise in revenue and 2.7 per cent in NPI for H2 FY2025. DPU grew 1.8 per cent to S$0.0180 for the half year. The Reit expects a more favourable interest rate outlook to contribute positively towards distribution performance.

Its cost of debt stood at 3.46 per cent per annum, while interest coverage ratio improved to 1.6 times. Earlier in August, LReit entered into an agreement to divest the office component of commercial-retail development Jem for S$462 million, which will strengthen the Reit’s capital structure.

MPACT

MPACT’s revenue and NPI fell in Q1 FY2026, largely due to the strategic divestment of Mapletree Anson and lower overseas contributions. DPU fell 3.8 per cent to S$0.0201. Occupancy dipped slightly to 89.3 per cent, but rental reversion was positive at 1.4 per cent, with VivoCity leading with a 14.7 per cent uplift.

In July 2025, MPACT announced the proposed divestment of two non-core Japanese properties for 8.7 billion yen (S$78.7 million). This transaction aligns with the manager’s ongoing strategy to enhance portfolio quality and focus on core assets.

OUE Reit

OUE Reit’s Mandarin Gallery recorded a committed occupancy rate of 99 per cent and rental reversion of 34.3 per cent in Q2 2025. The average passing rents for the property increased by 2.7 per cent to S$22.22 per square foot per month, compared to Orchard Road retail rents’ growth of 0.5 per cent. The Reit collaborated with several partners to introduce new experiences at the shopping mall, including a partnership with Pop Mart which featured Labubu.

Starhill Global Reit

Starhill Global Reit posted a 0.7 per cent yoy rise in revenue and maintained steady NPI in H2 FY2025. DPU held at S$0.0185. Retail portfolio committed occupancy was at 97.3 per cent, with Singapore properties fully leased. In FY2025, Wisma Atria Property’s shopper traffic rose 5 per cent yoy, though tenant sales fell 5.2 per cent. Aggregate leverage remained at 36 per cent and average debt maturity was 3.1 years.

Suntec Reit

Suntec Reit saw revenue and NPI rise by 3.3 per cent and 5.6 per cent, respectively, in H1 2025, driven by a one-off compensation in Sydney, Australia, and stronger performance in Singapore. DPU grew 3.7 per cent to S$0.03155.

Suntec City mall recorded rental reversion of 18 per cent for the half year, despite a slight drop in shopper traffic and tenant sales. The Reit expects retail sales to stay subdued amid cautious consumer spending, but Suntec City mall should maintain over 95 per cent occupancy, due to strong tourism and Mice (meetings, incentives, conferences and exhibitions) activity. While positive rent reversions are likely, they may ease in FY2025 given economic uncertainties. sgx research

The writer is a research analyst at SGX. For more research and information on Singapore’s Reit sector, visit sgx.com/research-education/sectors for the S-Reits & Property Trusts Chartbook.