Best REITs for 2026: Investing in Real Estate Investment Trusts in Singapore
Updated: 17 Jul 2026
Written bySingSaver Team
Team
Decision Guide
The information on this page is for educational and informational purposes only and should not be considered financial or investment advice. While we review and compare financial products to help you find the best options, we do not provide personalised recommendations or investment advisory services. Always do your own research or consult a licensed financial professional before making any financial decisions.
Saver takeaways
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S-REITs offer a way to invest in Singapore's real estate market without a large capital outlay.
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They provide regular income through dividends and the potential for long-term growth.
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Top-performing S-REITs in 2025 include Keppel DC REIT, Frasers Centrepoint Trust, and Mapletree Industrial Trust.
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Diversifying your portfolio across different S-REIT sectors and geographies can help manage risk.
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Consider factors like dividend yield, Net Asset Value (NAV), and total returns when evaluating S-REITs.
What are S-REITs?
Real Estate Investment Trusts (REITs) allow investors to invest in real estate without a high capital outlay. These trusts pool money from investors to purchase and manage income-generating properties, distributing the rental income as dividends. Different REITs hold portfolios of properties serving diverse uses, allowing you to zero in on a particular sector like hospitality, commercial, or mix-and-match to hedge against risks. This makes REITs a popular way to add a real estate investment trust Singapore exposure to a diversified portfolio.
S-REITs, or Singapore Real Estate Investment Trusts, refer to REITs listed on the Singapore Exchange (SGX). As at end-2025, Singapore has 41 listed REITs and property trusts with a combined market capitalisation of S$104 billion, representing around 10% of SGX's total market capitalisation — making it one of the largest REIT markets in Asia outside Japan.
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How do REITs work?
REITs operate by pooling funds from multiple investors, typically through an Initial Public Offering (IPO), where units of the REIT are offered to the public. This collective capital is then used to acquire and manage a portfolio of income-generating properties leased out to tenants.
The rental income generated is distributed back to investors as dividends, usually quarterly or semi-annually. This gives individuals a way to tap into the real estate market and generate passive income without the burdens of direct property ownership or management.
Singapore takes a strict regulatory approach to REITs to keep the sector stable and investor-friendly. Key rules S-REITs must follow include:
- Generous dividend payouts: S-REITs must distribute at least 90% of their taxable income to unitholders annually.
- Controlled debt levels: S-REITs must maintain a gearing ratio (debt-to-asset ratio) below 50%. As at end-2025, the sector average sits at around 39% — comfortably under the cap, though this varies significantly by REIT.
- Limits on development: Investment in property development is capped at 25% of a REIT's total asset value, guarding against overexposure to development risk.
>> Related: Explore the various types of real estate investments
What kind of returns can I expect from investing in REITs?
Returns from REITs vary depending on the property sectors held, broader market conditions, and how well the REIT is managed. REITs in high-demand sectors like data centres or logistics have generally outperformed those in more traditional sectors like retail or office space in recent years — though this can shift as conditions change.
The macro backdrop has turned notably more favourable for S-REITs recently. After peaking near 3% in early 2025, Singapore's benchmark 3-month SORA rate has fallen to roughly 1.06% by mid-2026, easing borrowing costs across the sector. This tailwind, combined with resilient occupancy, helped the FTSE ST REIT Index deliver a 14.7% total return in 2025 — its best year since 2019 — and the index's 10-year annualised total return now stands at around 6%.
The average distribution yield across S-REITs was 5.9% as at 31 December 2025, comfortably ahead of the 10-year Singapore government bond yield of around 2.1%. As always, past performance doesn't guarantee future results, but the current yield spread suggests S-REITs remain a competitive income option relative to safer alternatives.
Before You Compare
Your investment time horizon
REITs suit medium- to long-term holding periods rather than short-term trades.
Brokerage access to SGX
Confirm your broker offers SGX trading before comparing counters.
Tax treatment of distributions
Individual investors are generally not taxed on REIT distributions in Singapore.
Comfort with gearing levels
Higher-geared REITs are more sensitive to interest rate swings.
Sector concentration vs diversification
Decide if you want a single sector bet or broad exposure.
Best-performing S-REIT stocks at a glance
2026 has continued the momentum S-REITs built through 2025, aided by lower borrowing costs and firmer occupancy across most sectors. Here are five S-REITs commonly featured in best REITs Singapore discussions, spanning data centres, retail, industrial, and diversified commercial real estate:
| S-REIT | Code | Distribution Yield (%)* | 1-Year Total Return (%)* | Market Cap (S$)* | Category |
|---|---|---|---|---|---|
| CapitaLand Integrated Commercial Trust | C38U | 4.8 | 29.9 | 18.19B | Diversified (Retail/Office) |
| CapitaLand Ascendas REIT | A17U | 5.3 | 16.7 | 13.05B | Industrial |
| Mapletree Industrial Trust | ME8U | 6.2 | 0.4 | 5.94B | Industrial / Data Centres |
| Keppel DC REIT | AJBU | 4.6 | 6.4 | 5.49B | Data Centres |
| Frasers Centrepoint Trust | J69U | 5.2 | 16.7 | 4.74B | Retail |
*Figures as at 31 December 2025. Source: SGX Research, Chartbook: S-REITs & Property Trusts, 4Q 2025. This information is for educational purposes only and should not be taken as financial advice.
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Keppel DC REIT
Keppel DC REIT remains a standout in Singapore's data centre space, powering everything from cloud computing to AI-driven workloads. Through 2025, the REIT completed its acquisition of the remaining interests in Keppel DC Singapore 7 and 8 and added Tokyo Data Center 3 to its portfolio, followed by full ownership of Keppel DC Singapore 3 and 4 by year-end. These moves have deepened its data centre concentration in Singapore and Japan, positioning it to keep benefiting from AI-driven demand for digital infrastructure.
Frasers Centrepoint Trust
Frasers Centrepoint Trust (FCT) continues to anchor Singapore's suburban retail scene, with malls in high-footfall residential estates known for strong tenant mixes. Its biggest recent move was the acquisition of Northpoint City South Wing in March 2025, a deal that meaningfully expanded its retail footprint. FCT remains a constituent of the Straits Times Index (STI), underscoring its weight in Singapore's retail REIT space.
Mapletree Industrial Trust
A long-time favourite among Singaporean investors, Mapletree Industrial Trust (MIT) holds a diversified mix of business parks, hi-tech industrial buildings, and data centres, which now make up roughly half its portfolio. While MIT's headline distribution yield remains one of the higher figures on this list at 6.2%, its unit price has been essentially flat over the past year — a reminder that yield and total return can diverge, and that a high yield REITs Singapore pick isn't automatically the best all-round performer.
Capitaland Ascendas REIT
CapitaLand Ascendas REIT (CLAR), Singapore's first and largest business and industrial REIT, has stayed active on the acquisition front through 2025 — picking up a data centre at 9 Tai Seng Drive, a business park property at 5 Science Park Drive, development land in the UK, and a further Singapore industrial portfolio. Gearing has ticked up slightly to around 39%, still within regulatory limits, as the REIT continues funding growth through a mix of debt and equity.
CapitaLand Integrated Commercial Trust
CapitaLand Integrated Commercial Trust (CICT) is Singapore's largest listed REIT by market capitalisation, with a portfolio spanning 21 properties in Singapore plus assets in Frankfurt and Sydney. Its landmark 50% stake acquisition in ION Orchard, first announced in 2024, has since completed, and CICT went on to acquire the remaining 55% interest in CapitaSpring's commercial component in August 2025. These moves have reinforced CICT's position as the largest owner of private retail space in Singapore and a bellwether for the diversified commercial REIT segment — reflected in its strong 29.9% one-year total return, the highest among the REITs featured here.
Best-performing REIT ETFs in Singapore
If picking individual counters feels like more work than you'd like, REIT ETFs listed on SGX offer instant diversification across a basket of S-REITs in a single trade — useful if you're still working out how to invest in REITs Singapore-style without extensive stock-picking.
| ETF | Ticker | Holdings | 12-Month Dividend Yield | Total Expense Ratio |
|---|---|---|---|---|
| Lion-Phillip S-REIT ETF | CLR | 19 | 5.49% | 0.60% p.a. |
| CSOP iEdge S-REIT Leaders ETF | SRT (SGD) / SRU (USD) | 22 | 5.56% | 0.60% p.a. |
Both funds are 100% Singapore-focused and pay distributions semi-annually. Their top holdings overlap significantly with the individual REITs featured above — CapitaLand Integrated Commercial Trust, CapitaLand Ascendas REIT, Mapletree Industrial Trust, and Keppel DC REIT all feature among the top five constituents of both funds.
For investors wanting regional diversification beyond Singapore, options like the Amova-Straits Trading Asia ex Japan REIT Index ETF or the Phillip SGX APAC Dividend Leaders REIT ETF spread exposure across Hong Kong, Australia, and other Asia-Pacific REIT markets, though yields and expense ratios vary more widely.
Source: SGX Research, Chartbook: S-REITs & Property Trusts, 4Q 2025, ETF data as at 13 February 2026.
Types of S-REITs
Not all S-REITs are created equal — they're categorised by the kinds of properties they own, and these distinctions matter for how they respond to market shifts.
Retail REITs
Retail REITs focus on shopping malls and retail spaces. Frasers Centrepoint Trust and CapitaLand Integrated Commercial Trust generate income primarily from rental leases with retail tenants.
Office REITs
Office REITs acquire and manage office buildings, earning revenue through lease agreements with businesses. Performance here is closely tied to the broader economy and office demand. Keppel REIT and Mapletree Pan Asia Commercial Trust are well-established players in this space.
Industrial REITs
Industrial REITs hold warehouses, logistics facilities, and factories. Rising e-commerce and supply chain demand has driven growth for industrial REITs such as Mapletree Industrial Trust and CapitaLand Ascendas REIT.
Data Centre REITs
A newer but fast-growing category, data centre REITs like Keppel DC REIT own facilities powering cloud computing and AI workloads — a segment that's expanded meaningfully as digital infrastructure demand has surged.
Hospitality REITs
Hospitality REITs invest in hotels, resorts, and related properties, with performance closely tied to tourism and travel trends. CDL Hospitality Trusts and Far East Hospitality Trust are examples in this space.
Healthcare REITs
Healthcare REITs, including ParkwayLife REIT and First REIT, focus on hospitals, clinics, and nursing homes. An ageing population and rising healthcare needs continue to support demand in this defensive sector.
Mixed-Use / Diversified REITs
Mixed-use REITs hold a combination of property types, offering built-in diversification. CapitaLand Integrated Commercial Trust and Frasers Logistics & Commercial Trust are key examples.
Pros & Cons of S-REITs
Investing in REITs, particularly S-REITs, comes with its own set of advantages and disadvantages. As such, it's essential to approach them with a balanced perspective before making investment decisions.
Pros
Stable income streams
Portfolio diversification
Liquidity
Growth potential
Cons
Risks
Tax implications
Debt reliance
Interest rate sensitivity
Pros of S-REITs
- Stable income streams: S-REITs must distribute at least 90% of their income as dividends, consistently delivering some of the highest dividend yields in the stock market. The most dependable S-REITs have a track record of delivering steady, growing dividends over time.
- Portfolio diversification: S-REITs give individual investors access to commercial real estate without needing substantial capital, reducing reliance on any single sector.
- Liquidity: Traded on SGX, S-REITs offer far more flexibility to buy or sell compared to physical real estate.
- Growth potential: Well-managed S-REITs pursue acquisitions and redevelopments that drive long-term value and rental income growth.
Cons of S-REITs
- Risks: Rising interest rates can increase borrowing costs and reduce distributable income. Property downturns or tenant defaults can also hurt rental income and valuations.
- Tax implications: While REITs themselves aren't taxed, it's worth checking how distributions are treated depending on your personal tax situation.
- Debt reliance: S-REITs often carry meaningful debt to finance acquisitions. This can amplify returns but also increases risk during downturns — Singapore's regulatory gearing cap helps manage, but doesn't eliminate, this risk.
- Interest rate sensitivity: Rising rates increase borrowing costs, potentially squeezing the funds available for distribution — though the current falling-rate environment has been a tailwind rather than a headwind through 2025–2026.
Investing in S-REITs: Steps to get started
- Set your investment goals: Are you aiming for steady income, capital growth, or a mix of both?
- Open a brokerage account: Sign up with an online brokerage offering SGX access, with competitive fees.
- Research S-REITs: Compare dividend yield, sector focus, gearing, and portfolio performance.
- Start investing: Place your orders and begin building your S-REIT portfolio.
Since S-REITs offer attractive yields, holding them in a tax-advantaged account like the SRS can help maximise after-tax returns. For retirement income specifically, CPF LIFE remains Singapore's core national annuity scheme to layer alongside REIT income.
If you'd rather not pick individual counters, REIT ETFs (see table above) offer instant diversification and a simpler way to get real estate investment trust Singapore exposure.
Building a balanced S-REIT portfolio
Sector diversification
S-REITs span retail, industrial, hospitality, healthcare, and data centres. Each reacts differently to economic conditions — industrial REITs often benefit from trade and e-commerce, while retail REITs track consumer spending. Spreading across sectors reduces concentration risk.
Geographical diversification
While many S-REITs are Singapore-based, over 90% now hold at least some overseas assets, spanning Australia, the US, Japan, Europe, and beyond — offering built-in geographic diversification within a single S-REIT purchase.
Balanced allocation
Pairing higher-growth REITs (like data centre plays) with steadier income REITs (like healthcare or retail) helps balance capital appreciation potential with consistent payouts.
Metrics to consider when evaluating REITs
Distribution-per-Unit (DPU)
Many investors are tempted to chase the highest S-REIT dividend yield, but this isn't always the wisest move — yield rises if the unit price falls, which isn't a good sign. Instead, focus on Distribution-per-Unit (DPU): the actual payout per unit. A track record of rising DPU is the hallmark of a healthy REIT.
Net Property Income (NPI)
NPI measures profitability — gross rental revenue minus operating expenses like management fees, maintenance, and property taxes. Look for steady or growing NPI; a declining NPI signals fundamental problems.
Gearing
Gearing measures how much debt a REIT carries. Too much debt raises repayment risk; too little may mean missed acquisition opportunities. Singapore caps REIT gearing at 50%; most S-REITs currently sit around 35–40%.
Net Asset Value (NAV)
NAV is a REIT's net market value divided by total units outstanding. Comparing unit price to NAV per unit helps gauge whether a REIT is trading above (overvalued) or at/below (potential value) its fair value.
Total Returns
Total returns capture both unit price appreciation and dividend yield together — a more complete performance picture than looking at DPU or NAV alone.
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SingSaver Team
At SingSaver, we make personal finance accessible with easy to understand personal finance reads, tools and money hacks that simplify all of life’s financial decisions for you.