- We expect FY25e results to surprise on the upside, driven by lower financing costs, with REITs holding a larger proportion of S$-denominated floating-rate debt to benefit the most from the 183bps y-o-y decline in 3M SORA to 1.19% as at 31 December 2025.
- The S-REITs Index rose 0.7% in December 2025, reversing a 0.8% decline in November, and bringing 2025 price returns to 11.3%. Including dividends, total returns for 2025 would have been 16.1%.
- - Read this at SGinvestors.io -
- - Read this at SGinvestors.io -
- Valuation-wise, the sector now trades at a forward dividend yield spread of ~3.3% (-0.9x standard deviation) and a P/NAV of 0.99x (-0.1x standard deviation), which we view as attractive entry levels, given the potential for DPU growth in FY25–26 as financing costs continue to ease.
Sector round-up
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