What the FY2025 Results Really Tell Us From 3 Singapore REITs

As of the fiscal year 2025, the latest full-year earnings of CapitaLand Integrated Commercial Trust, First REIT, and CapitaLand China Trust present us with three distinct development paths.

On one hand, a real estate investment trust company has demonstrated its strength through its scale advantage; on the other hand, another company has dealt with exchange rate fluctuations with composed perseverance; and the third company is facing severe market adjustments.

These results go far beyond just the issue of decimal points; they provide a roadmap for direction-setting in an environment where interest rates remain high for an extended period.

CICT: The Steady Overachiever

If your portfolio had an anchor, CapitaLand Integrated Commercial Trust (CICT) would likely be it. 

With S$27.4 billion in assets, CICT didn’t just grow; it flourished. 

Gross revenue ticked up 2.1% YoY to S$1.6 billion, whilst net property income (NPI) climbed 3.1% year on year to S$1.2 billion.

But the real win for investors was the 6.4% jump in distribution per unit (DPU) to S$0.1158. 

Delivering five consecutive years of growth is no small feat in this climate – it’s a testament to the strength of its mix of malls and offices.

Management isn’t just sitting back, either. 

By taking full ownership of the iconic CapitaSpring tower and selling Bukit Panjang Plaza at a massive 165% premium, CICT is proving they know when to double down and when to cash out. 

Even with big projects like Hougang Central on the horizon, the team managed to trim their borrowing costs to 3.2%. 

For those seeking steady compounding, CICT remains a quintessential core holding.

First REIT: Fighting the Currency Ghost

First REIT presents a bit of a paradox. 

If you only look at the headline DPU – which slipped 8.1% YoY to S$0.02170 – you might feel discouraged. 

But look under the hood, and you’ll see a business that is actually performing well. 

In their home markets of Indonesia and Singapore, rental income actually grew 5.1% and 2.0% respectively. 

The villain here wasn’t the hospitals or the tenants; it was the weakening rupiah and yen eating away at profits when converted back to Singapore dollars.

The good news is the REIT maintains a perfect 100% occupancy rate and an enviable weighted average lease expiry (WALE) of 10 years, providing long-term cash flow visibility. 

The challenge now lies in the balance sheet. 

With S$260.5 million in loans coming due in 2026 (comprising a S$246.7 million term loan due in May and a S$13.8 million Shinsei Social Loan due in September) and gearing at 42.1%, management is currently in the “refining” phase. 

It remains a unique way to play the healthcare sector, but its future hinges on how well the team can navigate these financial hurdles over the next year.

CLCT: Testing the Contrarian’s Resolve

It’s been a tough year for CapitaLand China Trust. 

Gross revenue was down 9.1% YoY to RMB 1.67 billion, while NPI fell 9.4% to RMB 1.10 billion. 

DPU came in at S$0.0482, declining 14.7% YoY. 

This includes a top-up of S$0.0033 drawn from past divestment gains; stripping this out, underlying DPU was S$0.0449, a 20.5% drop compared to a year ago.

It’s a reflection of the cold reality of the Chinese market, where logistics tenants are playing hardball and competition is fierce.

However, there is a silver lining for those who like to look deeper. 

Shopper traffic is actually up, and management increased RMB-denominated debt from 35% to 60% of total borrowings, achieving YoY interest cost savings of 8.1% while providing a natural hedge against currency fluctuations. 

CLCT is not for the faint of heart; it’s a play for the patient investor who believes in China’s eventual comeback. 

For now, it’s about battening down the hatches and waiting for the storm to pass.