Several Singapore REITs (S-REITs) are flying under the radar but deserve investor attention due to their potential for growth and attractive yields. Here we look at 5 under the radar S-REITs that currently yield more than 7%.
| REIT | Ticker (SGX) | Market Cap (S$’Mil) | Yield | Current P/B ratio | Gearing Ratio | 1-Year Total Return | 3-Year Total Return –annualised |
| AIMS APAC REIT | O5RU | $1,062 m | 7.4% | 1.1x | 28.9 | 11.3% | 5.7% |
| United Hampshire US REIT | ODBU | $339 m | 9.1% | 0.6x | 39.2 | 20.1% | -0.7% |
| Digital Core REIT | DCRU | $838 m | 7.2% | 0.6x | 38.0 | -10.5% | -15.3% |
| Lendlease Global Commercial REIT | JYEU | $1162 m | 7.5% | 0.5x | 38.0 | -7.7% | -11.4% |
| Daiwa House Logistics Trust | DHLU | $395 m | 8.5% | 0.8x | 41.1 | 7.7% | -1.7% |
1) AIMS APAC REIT (SGX: O5RU)
We covered AIMS APAC REIT (AA REIT) before as one of the best REITs to invest in 2022, since then it has been one of just a of handful of S-REITs that have delivered 3 years of annualised positive performance.
AA REIT invests in industrial, logistics and business park real estate across Asia Pacific. AA REIT’s portfolio comprises 28 properties, of which 25 properties are located across Singapore and 3 properties located in Eastern Australia, with a total portfolio value of S$2.13 billion.
Due to the high interest environment, AA REIT has focused on organic growth initiatives and Asset Enhancement Initiatives (AEI) within its existing portfolio, rather than major acquisitions in recent years. The REIT’s strategy involved asset rejuvenation, including refurbishment at 7 Clementi Loop and repositioning of 15 Tai Seng Drive. AA REIT also completed Installation of Rooftop Solar Panels (10.8 MWp) at 6 properties with further installations underway.
AA REIT undertook a S$100 million equity fund raise (“EFR”) in July 2023 to strengthen its balance sheet and to lay the groundwork for future growth. As a result of the enlarged unitholder base after the EFR, AA REIT reported a fall in full year DPU by 5.9% despite Distributions growing by 3.8%.
As a result of the EFR and the divestment of a property, AA REIT’s gearing fell from 36.1% in 2023 to 28.9% now, providing it with the necessary headroom to fund AEIs as well pursue potential accretive acquisition opportunities in Singapore and Australia.
2) United Hampshire US REIT (SGX:ODBU)
UHREIT is Asia’s first U.S. Grocery-Anchored Shopping Center and Self-Storage REIT and the REIT IPO-ed in the peak of the pandemic in March 2020 attesting to its resilience.
UHREIT has a portfolio of 21 properties located along the east coast of the U.S., consisting of 19 grocery-anchored and necessity-based retail properties, and two modern, climate-controlled self-storage properties with a carrying value of approximately US$731 million.
UHREIT’s US REIT tenants are e-commerce resistant, with a majority of their anchor tenants of Grocery & Necessity assets utilising their physical stores for their omni-channel strategies. UHREIT’s operational performance therefore remains resilient with its Grocery & Necessity portfolio recorded a high committed occupancy of 97.2% and a long weighted average lease expiry (“WALE”) of 7.8 years.
Worries over tariff have weigh on sales. U.S. retail sales declined by 0.9% in May 2025 from the previous month, largely due to a pullback in motor vehicle purchases after an earlier rush to beat anticipated tariff-related price hikes. But it is possible that with tariff escalations, even consumer staples are not spared.
Despite the decline, consumer spending remained resilient, supported by solid wage growth. Meanwhile, U.S. consumer confidence unexpectedly declined in June 2025. The drop reflects rising concerns about the potential impact of trade policy on the economy and job market.
To keep itself lean and its gearing low, UHREIT has also divested several properties which has impacted its distribution but at the same time keep gearing tenable to allow for future acquisitions.
3) Digital Core REIT (SGX: DCRU)
DCREIT is a pure-play data centre REIT sponsored by Digital Realty(NYSE: DLR), a global pure-play listed data centre owner and operator.
DCREIT owns a diversified portfolio of 11 mission-critical facilities valued at US$1.7 billion, concentrated in core data centre markets across the United States, Canada, Germany, and Japan with occupancy currently at 98%.
The data centre industry tends to be counter-cyclical and relatively defensive and DCREIT has acknowledged that it is keenly aware of the discounted valuation at which the REIT trade as compared to its peers and have said that it intends to narrow the gap over time through consistent execution of proactive leasing, accretive investing, and prudent financing.
DCREIT’s management is firing on all fronts, working on improving operating performance, carrying out disposals and even performing share buybacks, something viewed as rare in the S-REIT space. In 2024, DCREIT repurchased a total of 27.0 million units at an average price of $0.576, generating DPU accretion of approximately 1.8% for unitholders.
4) Lendlease Global Commercial REIT (SGX: JYEU)
LREIT’s portfolio comprises leasehold interest in two properties in Singapore namely Jem (office and retail property) and 313@somerset (retail property) as well as freehold interest in Sky Complex, which comprises of three Grade A commercial buildings in Milan. Other investments include a stake in Parkway Parade and development of a multifunctional event space on a site adjacent to 313@somerset.
Singapore retail assets, especially in suburban areas continue to remain robust. LREIT’s Retail portfolio achieved a positive rental reversion of 10.4% on a 99.5% occupancy with tenant retention rate remaining healthy at 87.9% .
LREIT was awarded the tender to redevelop the 48,200sqft car park at Grange Road. The site is being redeveloped into a multifunctional event space and will maximise its full potential as well as create synergy with 313@somerset. Construction at the multifunctional event space is progressing and is on track to be completed by 2H 2026.
Its Jem office is fully leased to the Singapore’s Ministry of National Development until 2044 providing stability. A Rental review exercise for the Jem office was completed in February with a positive uplift of approximately 13% over the prevailing base rent for five years effective from 3 December 2024.
Looking ahead, despite uncertain capital markets, LREIT intends to pursue options for asset recycling, with the objective of reducing its gearing. LREIT also shared that it is currently assessing its strategy and will communicate its strategic growth plan once it is ready to do so.
5) Daiwa House Logistics Trust (SGX: DHLU)
DHLT is a logistics and industrial REIT in Asia, in particular, within Japan as well as in the ASEAN region. The properties are mainly located in Japan, and with one located in Vietnam, a growing market.
The portfolio currently comprises 19 modern logistics properties which are built to high specification. The properties are strategically located with proximity to transportation and shipping infrastructure. The portfolio has a high occupancy rate of 92.1% anchored by a diversified blue-chip tenant base which are involved in multiple sectors including 3PL and e-commerce.
The portfolio has a mix of built-to-suit single-tenanted and multi-tenanted properties, providing a balance of both long-term stability and opportunities for rent increases upon lease renewals, as well as a balanced mix of freehold and leasehold assets.
The trade tariffs that were imposed by the United States have resulted in economic uncertainty globally. Less than 10% of the tenants of the Japan portfolio are involved in exporting of goods including car manufacturing while the property in Vietnam is anchored on a long 20-year lease that expires in 2043.
While there was a higher level of vacancy at 7.9%, there was also healthy rent uplift for the vacated spaces that were re-leased. Against the backdrop of economic uncertainties, DHLT will continue to exercise prudence and discipline in capital management.
Closing statements
The higher interest rate environment of recent years has affected the returns of the S-REIT sector.
However, the time is probably right for a rebound in the S-Reit market. Interest rates have likely peaked, giving S-Reits stability and more certainty on their future performance. The sector is also seeing a rebound as lower interest rates ease borrowing pressure on S-Reits.
The 3-month SORA has fallen below 2% and the daily SORA currently hovers around 1.6% indicating that the 3-month SORA will edge down further.
In the USA, the 3-month SOFR is still high at 4.34% while the overnight remains at 4.5%. The expectation is for the overnight to fall to 4% by end of 2025 and closer to 3% by 2026.
These 5 S-REITs are under the radar as they do not have large market capitalisation and are also not big names. However, they all have their own strengths and have set themselves up to outperform. With all of them current yielding more than 7%, there is also a good chance of achieving double digit total returns on any of these 5 names. Stay updated on REIT trends, market insights, and income opportunities with SGX. Explore more here.
Disclosure: This article is sponsored by SGX. However, all opinions expressed are solely those of the author.
https://www.straitstimes.com/business/companies-markets/lendlease-reit-to-sell-office-component-of-jem-to-keppel-for-462-million
What could be the reason for divesting the JEM office tower since this is good regular income for the REIT?
LREIT’s management said they want to focus on retail and will have more than 85% of their portfolio in this segment.
Pure-plays aid valuation but at the cost of diversification. We also dont like REITs that reduce their SG exposure due to the scarcity of high quality SG assets