3 Singapore REITs near multi-year lows. Are they a bargain?

Trump’s Liberation Day tariff announcement took the world by surprise and impacted global stock markets.

The NASDAQ Composite Index fell into a bear market while the bellwether S&P 500 Index and Dow Jones Industrial Average entered a correction.

Over in Singapore, the Straits Times Index also fell sharply to end below 3,400, not long after it hit an all-time high above 4,000 recently.

The REIT sector was not spared as due to fears over a trade war and global recession.

At the same time, higher government bond yields may have made the dividend yields offered by Singapore REITs appear relatively less attractive. 

We have seen the 10-year US government bond yield jump to close to 4.5% from 4.0% last week.

In this article, we look at three Singapore REITs that are trading at multi-year lows with the recent sell-down.

3 Singapore REITs trading at multi-year lows

#1 – Frasers Logistics & Commercial Trust (SGX: BUOU)

Frasers Logistics & Commercial Trust, or FLCT, is an industrial and commercial REIT with a portfolio of 114 properties worth S$6.8 billion as of 31 December 2024.

FLCT's share price fell to as low as S$0.755 on 9 April, before recovering to close at S$0.805 on 11 April.  

Based on its share price of S$0.805, FLCT trades at a price-to-book (P/B) ratio of just 0.71x, based on a net asset value (NAV) of S$1.13 as of 30 September 2024, below its average P/B ratio of 0.84x as seen below.

For its fiscal 2024 (FY2024), FLCT’s distribution per unit (DPU) dipped by 3.4% year on year to S$0.068.

FLCT reported a 6.2% year-on-year increase in revenue to S$446.7 million.

Adjusted net property income (NPI) inched up 2.7% year on year to S$320 million.

Portfolio occupancy stood high at 94.3% while its logistics and industrial division saw a strong positive rental reversion of 41.8% for its first quarter of fiscal 2025 (1Q FY2025) ending 31 December 2024.

The main reason for the fall in DPU was because of a 40% year-on-year increase in finance costs for FY2024.

Aggregate leverage stood fairly low at 36.2% and FLCT had S$433 million of debt headroom before hitting the 40% gearing level.

For now, investors appear concerned that the tariffs will lead to lower demand for logistics and warehousing facilities, thus impacting the REIT’s rental income flow.

Based on the distribution of S$0.068 in FY2024 and share price of S$0.805 as of 11 April 2025, FLCT trades at a historical dividend yield of 8.4%. 

Related links:

• Frasers Logistics & Commercial Trust share price history and share price target
• Frasers Logistics & Commercial Trust dividend history and dividend forecast

#2 – CapitaLand China Trust (SGX: AU8U)

CapitaLand China Trust, or CLCT, is a China-focused REIT with nine shopping malls, five business park properties, and four logistics park properties.

CLCT suffered a sharp sell-down to a multi-year low of S$0.56 on 9 April, before recovering to close at S$0.605 on 11 April. 

Based on its share price of S$0.605, CLCT  is trading at a P/B ratio of just 0.56x based on an NAV of S$1.09 per unit, below its average of 0.61x.

The REIT reported a downbeat set of earnings for 2024 as China continued to suffer from the effects of a property bust and weak consumer demand.

DPU fell 16.2% year on year to S$0.0565.

Revenue fell by 6.4% year on year to S$341.5 million while NPI tumbled 8.2% year on year to S$226.6 million.

The lower distributable income was because of weaker performance from the REIT’s business and logistics parks divisions as well as a weaker RMB against the Singapore Dollar.

CLCT’s retail division is doing fine, with both shopper traffic and tenant sales registering year-on-year increases for 2024.

However, the business parks division saw a negative rental reversion of 4.5% with occupancy at 87.6%.

Similarly, the logistics parks division suffered from a negative rental reversion of 24.5% but managed to improve its occupancy rate to 97.6%.

CLCT has a gearing of 41.9% and an average cost of debt of 3.51% but the manager is actively replacing its higher-interest Singapore dollar loans with RMB-denominated loans to lower the REIT’s cost of debt.

Like for FLCT, investors appear concerned that the tariffs will lead to lower demand for its business parks and logistics parks in China, thus impacting the REIT’s rental income flow.

Based on the distribution of S$0.0565 in FY2024 and share price of S$0.605 as of 11 April 2025, CLCT trades at a historical dividend yield of 9.3%. 

Related links:

• CapitaLand China Trust share price history and share price target
• CapitaLand China Trust dividend history and dividend forecast

#3 – Lendlease Global Commercial REIT (SGX: JYEU)

Lendlease Global Commercial REIT, or Lendlease REIT, owns a portfolio of real estate assets used for retail and office purposes.

Its portfolio comprises Jem and 313 @ Somerset in Singapore along with a freehold interest in Sky Complex consisting of three Grade A office buildings in Milan, Italy.

These five properties have a total appraised value of S$3.68 billion as of 30 June 2024.

The REIT sell-down pushed Lendlease REIT's share price to S$0.44 on 9 April, before recovering to close at S$0.495 on 11 April.  

Based on its share price of S$0.495, Lendlease REIT currently trades at a P/B ratio of just 0.67x based on an NAV of S$0.74, lower than its average P/B ratio of 0.76x.

For the first half of fiscal 2025 (1H FY2025), the retail and commercial REIT reported a DPU of S$0.018, 14.3% below the DPU declared in the same period last year.

Lendlease REIT saw gross revenue fall 13.6% year on year to S$103.6 million in 1H FY2025. 

The result was due to upfront recognition of supplementary rent received from the lease restructuring for Sky Complex in 1H FY2024.

After adjusting for this item, revenue in 1H FY 2025 would have crept up 0.4% year on year while NPI would have been lower by 2.1% year on year.

Lendlease REIT saw mixed performance across its assets. 

Within retail, the REIT enjoyed a high portfolio occupancy of 99.9% and positive rental reversion of 10.7%. 

However, its office occupancy came in at just 86.6%, while office rentals also saw a small 1.2% year-on-year uplift.

Lendlease REIT's DPU was impacted by higher finance costs as elevated interest rates ate into the REIT’s distributable income, just like FLCT. 

Lendlease REIT's gearing ratio stood fairly high at 40.8% along with an average cost of debt of 3.57%.

Based on the annualised distribution of S$0.036 in 1H FY2025 and share price of S$0.495 as of 11 April 2025, Lendlease REIT trades at a historical dividend yield of 7.3%. 

Related links:

• Lendlease Global Commercial REIT share price history and share price target
• Lendlease Global Commercial REIT dividend history and dividend forecast

What would Beansprout do?

The three REITs above are trading close to multi-year lows, and their P/B ratios are also near historical lows. 

The weakness appears to be either driven by concerns that trade tariffs would impact demand for logistics assets, which impacted FLCT and CLCT’s share prices. 

At the same time, investors also appear to be more cautious on REITs with gearing levels above 40%—such as CLCT and LREIT—given concerns about potential declines in asset values if there’s a significant shift in fundamentals or the interest rate outlook.

While these REITs are trading near multi-year lows, greater certainty on the trade tariffs and interest rate outlook may be required for investors to gain confidence on their prospects.

If you are interested to learn more about the outlook of Singapore REITs amidst the current market volatility, join us for our upcoming free webinar on 16 April, where we will discuss if the share prices of Singapore REITs will recover with falling bond yields. Register for free here.

You can also screen for the REITs with the that are trading at depressed valuations using our best Singapore REIT screener. 

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