Bright spots in industrial, logistics and data centre Reits

SINGAPORE real estate investment trusts (Reits) are set to remain volatile this year, fuelled by trade disruptions, which would keep interest rates higher for longer. Our top sector picks are industrial/logistics and data centres. While we see opportunities in these segments, investors should remain selective, prioritising Reits with resilient balance sheets and the ability to capture structural tailwinds.

Resilience in industrials/logistics Reits

Trade tensions have intensified as the US imposed new tariffs, including a 10 per cent levy on Singapore’s exports. Tariffs raise concerns for export-driven economies, but Singapore remains relatively insulated, as 13 per cent of its exports were bound for the US in the first quarter of this year, against the 10-year historical average of 11 per cent. Regional peers like Vietnam, Indonesia and Malaysia face higher tariff burdens.

This comparatively lighter tariff burden makes Singapore’s exports more cost-competitive, which may help position the country as a stable and reliable trade partner in the eyes of US buyers.