REIT Watch - Positive momentum for Office S-REITs as vacancy rates ease and rents climb
Singapore office S-REITs are experiencing positive momentum due to easing vacancy rates and rising rents. Key players like CapitaLand Integrated Commercial Trust, Mapletree Pan Asia Commercial Trust, and others show improved occupancy and rental reversions. The Urban Redevelopment Authority reports a slight decrease in vacancy rates, while CBRE notes a 2.1% increase in Grade A office rents. The trusts are benefiting from proactive asset management and limited new supply, supporting stable performance and growth.
S-REITs with exposure to Singapore office assets
| Trust Name | Stock Code | Market Cap (S$B) | P/B Ratio | Dividend Yield (%) |
| CapitaLand Integrated Commercial Trust | C38U | 17.9 | 1.1 | 4.4 |
| Mapletree Pan Asia Commercial Trust | N2IU | 7.7 | 0.8 | 5.6 |
| Keppel REIT | K71U | 4.2 | 0.9 | 4.2 |
| Suntec REIT | T82U | 4.1 | 0.7 | 4.8 |
| OUE REIT | TS0U | 1.9 | 0.6 | 5.9 |
Source: SGX, Bloomberg (Data as of 20 November 2025).
In 3Q25, the Urban Redevelopment Authority (URA) reported a modest tightening in office vacancy rates, easing from 11.4 per cent in 2Q25 to 11.2 per cent. According to CBRE Singapore, Grade A office rents increased 2.1 per cent year-on-year, underpinned by constrained new supply in the CBD core over the coming years.
This trend supported stronger performance among Singapore-listed office REITs, driven by healthy occupancy levels, positive rental reversions, and proactive asset management strategies.
The S-REITs with significant Singapore office exposure are CapitaLand Integrated Commercial Trust (CICT), Mapletree Pan Asia Commercial Trust (MPACT), Keppel REIT, Suntec REIT, and OUE REIT.
In the third quarter of 2025, CICT’s overall portfolio occupancy rate increased from 96.3 percent to 97.2 percent as at Sep 30. The office portfolio segment recorded the largest improvement, rising by 1.6 percentage points to 96.2 percent, with growth observed across Singapore, Germany, and Australia.
The weighted average lease expiry (WALE) for the office portfolio was 3.3 years. Average rents for CICT’s Singapore office properties reached S$10.92 per square foot per month, representing a 1.9 percent increase year-on-year. During the quarter, CICT completed the acquisition of the remaining 55 percent interest in CapitaSpring, resulting in full ownership of the asset.
MPACT’s office portfolio remained stable, with Singapore assets reporting occupancy rates of 93.0 percent at Mapletree Business City and 99.1 percent at other office and business park properties as at Sep 30. Tenant retention rates were approximately 87 percent, and the weighted average lease expiry (WALE) for office and business park assets was 2.4 years.
Overall portfolio revenue and net property income declined year-on-year, primarily due to asset divestments and lower contributions from overseas markets. On a comparable basis, Singapore properties recorded higher revenue and net property income. The trust continued its portfolio optimisation by divesting two Japan office buildings, maintaining its focus on core markets and quality assets.
Suntec REIT’s Singapore office portfolio maintained an committed occupancy of 98.5 per cent as at Sep 30. Rent reversions were positive, with Suntec City Office achieving a 6.8 per cent increase and One Raffles Quay and MBFC Towers 1 & 2 recording a 12.7 per cent uplift year-to-date. Lease expiries are well spread, with a WALE of 2.5 years. Gross revenue and net property income increased, supported by higher rents and lower operating costs. The manager expects stable performance going forward, underpinned by limited new supply and ongoing proactive tenant engagement.
Keppel REIT, maintained a committed occupancy of 96.3 per cent as at Sep 30, with a weighted average lease expiry of 4.7 years. The REIT achieved a robust rental reversion of 12.0 per cent for leases signed during the period, supported by demand from financial services, technology, and other sectors. NPI increased, driven by higher rentals and stable occupancy. All Singapore office assets hold BCA Green Mark Platinum certification, with Ocean Financial Centre and Keppel Bay Tower also recognised for Super Low Energy status.
Elsewhere, OUE REIT’s Singapore office portfolio reported committed occupancy of 95.3 per cent and a positive rental reversion of 9.3 per cent. Average passing rent rose to S$10.91 psf per month. Like-for-like commercial revenue grew 4.2 per cent year-on-year, and NPI increased 3.8 per cent, supported by higher rents across all assets. The REIT notes that Singapore’s office market continues to benefit from resilient demand, limited new supply, and a flight-to-quality trend, supporting portfolio stability and growth.
Meanwhile, LREIT completed the divestment of its Jem office component, with an approximate S$8.9 million gain on disposal available for distribution to unitholders.
For more research and information on Singapore’s REIT sector, visit sgx.com/research-education/sectors for the SREITs & Property Trusts Chartbook.
REIT Watch is a regular column on The Business Times, read the original version.
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