$Frasers Cpt Tr(J69U.SG)$CapLand IntCom T(C38U.SG)

💡 S-REITs: Is This the End or Just Another Rate Cycle?

Blue-chip REITs, especially neighbourhood mall ones, have been under pressure even before the latest Fed hike. Is this the end of the story?

FCT and CICT show exactly how sentiment, interest rates and valuation can pull in different directions.

Both have seen unit prices weaken over recent months, with RSI below 40.

It clearly shows the technical weakness. But their underlying businesses have not simply deteriorated.

🟢 FCT - Fundamentals Still Solid

• Occupancy stays very high at 99.8%

• Rental reversions positive at 6.5%

• 1H FY26 DPU growth of 1.4%

• Price around S$2.10, below latest NAV of S$2.19

• Indicative annualised yield around 5.8%

🟢 CICT - Stronger Growth

• Revenue up 7.5%, NPI up 8.7%, DPU up 7.1%

• Gearing lower at 37.4%

• Price around S$2.24, slightly above NAV of S$2.15

• Indicative annualised yield around 5.4%

📊 The Real Challenge -Macro Environment

The Fed raised rates to 3.75%–4.00% and Singapore’s 10-year government bond yield remains around 2.4%. Higher bond yields can keep pressure on REIT valuations.

So is this the end of REITs or simply another valuation and rate cycle?

Refer to the infographic for the full valuation, fundamentals and technical picture of FCT and CICT