Industrial S-Reits deliver stable operating performance in Q3
Knight Frank Research expects industrial real estate indicators to remain resilient for the rest of this year as well as into early 2026
[SINGAPORE] Industrial real estate investment trusts in Singapore (S-Reits) have delivered a stable operating performance in the third quarter ended September, as occupancy remained stable with positive portfolio rental reversions.
The seven S-Reits that focus on the industrial sector are Alpha Integrated Reit (formerly known as Sabana Industrial Reit), Mapletree Logistics Trust , Mapletree Industrial Trust , ESR Reit , CapitaLand Ascendas Reit , Aims Apac Reit and Daiwa House Logistics Trust .
Six of the seven trusts have reported their latest quarterly updates, and most have seen improvements to distributions in the latest quarter.
Alpha Integrated Reit, which reported its results on Oct 22, saw a 38.4 per cent year-on-year improvement in distributions per unit (DPU) for Q3 2025 amid stronger gross revenue and net property income (NPI).
The trust logged its 19th consecutive quarter of positive rental reversions, while occupancy at its New Tech Park asset also grew to 94.7 per cent as at end-September, from 86 per cent in June.
Similarly, Aims Apac Reit’s DPU also increased by 1.1 per cent on the year to S$0.0472 for the first half of its 2026 financial year, on the back of higher gross revenue and NPI. The Reit had positive rental reversion of 7.7 per cent for H1 and stable portfolio occupancy at 93.3 per cent.
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The Reit’s manager noted that the performance was underpinned by its active asset management strategy and disciplined capital management, as it continued to execute its portfolio rejuvenation strategy.
Elsewhere, ESR Reit posted a 6.8 per cent increase in distributable income, as gross revenue and NPI grew 22.7 per cent and 28.6 per cent, respectively. Occupancy remained healthy, while the Reit’s portfolio rental reversion stood at 8.4 per cent.
The Reit’s cost of debt fell to 3.4 per cent per annum as at end-September, from 3.84 per cent per annum in December 2024.
Meanwhile, Mapletree Logistics Trust reported a sequential improvement in DPU which rose 0.2 per cent quarter on quarter to S$0.01815, even though performance was weaker year on year. The manager noted that its portfolio operating metrics remained healthy, with 96.1 per cent occupancy, and 2.5 per cent positive rental reversions, excluding China.
Mapletree Industrial Trust reported a 5.6 per cent decline in DPU for its second quarter due to the absence of a one-off divestment gain, reduced income from portfolio divestment, and foreign-exchange headwinds.
The manager, however, noted that the trust’s operational performance was stable, underpinned by positive weighted average rental reversion in its Singapore portfolio and an increase in its overall portfolio’s weighted average lease to expiry. It remains committed to its expansion plan into data-centre markets in Europe and Asia-Pacific as it rebalances the portfolio for greater resilience.
Elsewhere, CapitaLand Ascendas Reit’s portfolio occupancy was relatively stable at 91.3 per cent, while portfolio rental reversion was also positive at 7.6 per cent.
In the broader Singapore market, industrial rents rose 0.5 per cent quarter on quarter and 2.3 per cent year on year in the Q3 of 2025, according to JTC statistics. Occupancy, meanwhile, rose 0.3 percentage point to 89.1 per cent compared with the previous quarter.
Knight Frank Research expects industrial real estate indicators to remain resilient for the rest of this year as well as into early 2026. It noted that investor appetite for industrial properties is expected to remain healthy as interest rates fall and the financial viability of warehouses, data centres and specialised manufacturing facilities attracts more interest on the back of positive carry.
The remaining industrial trust, Daiwa House Logistics Trust, is scheduled to report its Q3 trading update on Wednesday (Nov 12), before trading hours. SGX RESEARCH
The writer is a research analyst at SGX. For more research and information on Singapore’s Reit sector, visit sgx.com/research-education/sectors for the S-Reits & Property Trusts Chartbook.
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