S-REITs are definitely back in the playbook and in the mood, with the first rate cut happening in September 2025.
Although that happened just 1 week ago, some S-REITs have already gained more than 20% over the past 6 months. That’s outperforming even the S&P 500 at the time of writing.
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To be precise, some of the candidates are actually business trusts rather than REITs, but due to similar nature and the rally, they are included in this list of 7.
So which 7 REITs and business trust are currently beating the SPY, with dividends included?
1. Prime US REIT (SGX: OXMU): +46.75%
There is definitely light at the end of the tunnel for US commercial investment properties. The return-to-office trend is slowly building momentum, with reported physical occupancy nearly 70%, which bodes well for Prime REIT’s portfolio occupancy and leasing.
The REIT is still trading at a price to book value of 0.36x, showing more potential upside as it slowly positions for a turnaround.
It would take a while for distributions to normalise, but share prices always move ahead in anticipation of fundamentals baked in. The REIT might have rallied more than +40% in the past 6 months, but if the fundamentals slowly materialises, this could just be the start of a mean reversion rally.
2. Acrophyte Hospitality Trust (SGX: XZL): +36.88%
Acrophyte Hospitality Trust (SGX: XZL), formerly known as ARA US Hospitality Trust, is a Singapore-listed stapled group that invests in a portfolio of income-producing real estate assets primarily used for hospitality purposes in the United States. Its portfolio consists of select-service hotels across multiple U.S. states.
A major catalyst was the announcement in late May 2025 by the trust’s managers that they were evaluating “strategic options” and in discussions with the sponsor regarding a “potential transaction”. This fueled market speculation about a potential privatization or takeover.
Acrophyte Hospitality Trust has been in the news lately, as it has appointed DBS Bank Ltd (SGX: D05) to assist in conducting strategic review, revolving around capital expenditures arising from brand-mandated renovations and ongoing building maintenance and equipment replacement requirements which are expected to cost approximately US$100m.
Suspension of distributions is potentially one of the cards, and this should paint some uncertainties on the unit price in the coming weeks.
The REIT has rallied close to +40% over the last 6 months. But with the recent developments, I am unsure if a selloff or a continuous rally would occur.
3. ESR-REIT (SGX: 9A4U): +32.61%
ESR-LOGOS REIT (SGX: 9A4U), also known as ESR REIT, is a Singapore-listed real estate investment trust that invests in a diversified portfolio of logistics, high-specification industrial, and general industrial properties across Singapore and Australia.
The REIT’s manager has been actively divesting non-core assets and reinvesting the proceeds into higher-yielding, New Economy assets like logistics and high-specification industrial properties. This strategic shift is aimed at enhancing the portfolio’s quality and driving earnings and net asset value growth.
While other S-REITs have suffered, ESR REIT has flourished – its gross revenue, net property income and DPU has grown YoY.
The REIT still trades at reasonable valuations – dividend yield is at a trailing 7.6% while P/B ratio is at 1.05x.
4. Sabana REIT (SGX: M1GU): +27%
Sabana REIT is no stranger to REIT investors in 2025. This Shariah-compliant REIT targets stable rental income from industrial assets used for logistics, manufacturing, and warehouse purposes.
As of late September 2025, the share price was around SGD 0.44 to SGD 0.45, with a 52-week high of SGD 0.45 and a low near SGD 0.33. The REIT offers a trailing dividend yield of around 6.5%, which is attractive for income-focused investors. The share price’s modest recovery can be attributed to renewed interest in industrial real estate, gradual improvement in property rental income, and market perception of stable dividends amid a low interest rate environment.
The REIT might be trading at an enticing dividend yield, but compared historically, the REIT is trading near fair valuation. A positive re-rating could see the REIT being revalued at a higher price in the coming future.
5. CapitaLand India Trust (SGX: CY6U): +25.85%
CapitaLand India Trust (CLINT) (SGX: CY6U), previously known as Ascendas India Trust, is the first Indian property trust listed on the Singapore Exchange. Its main goal is to acquire and develop income-generating real estate in India, with a focus on business parks, logistics, and industrial properties, and expanding into new assets like data centres.
Due to solid growth driven by improving property income and strong portfolio occupancy (around 95%), the business trust has seen total shareholder returns swelling close to +26% over the last 6 months.
The business trust trades at a trailing dividend yield of 6.3% and a P/B ratio close to 1x. Not many would find the FX risk favourable, but the business trust does exhibit good track record.
6. Lendlease Global commercial REIT (SGX: JYEU): +24.48%
Lendlease Global Commercial REIT (SGX: JYEU) is a Singapore-listed REIT focused on investing in a diversified portfolio of stabilized, income-producing commercial real estate assets globally. Its key properties include retail and office buildings in Singapore such as 313@somerset and Jem, as well as the Sky Complex office buildings in Milan, Italy. The REIT’s strategy centers on retail and office properties with a global portfolio that provides diversified income streams.
The REIT’s outperformance stems from strong portfolio occupancy above 99% in retail assets and a positive rental reversion rate of 10.2% as at June 2025, which has supported income stability. The office component of JEM has been divested, to pare down debt.
In recent news, its Italian office building secured a tenancy lease with a US technology company.
The REIT trades at a trailing yield of 5.8% and a P/B of 0.83x, which is relatively undervalued compared to its historical valuations.
7. OUE Real Estate Investment Trust (SGX: TS0U): +25.39%
OUE Real Estate Investment Trust (SGX: TS0U) is one of Singapore’s largest diversified REITs with total assets under management of approximately SGD 5.8 billion as of end 2024. The REIT invests in income-producing real estate primarily for hospitality, retail, and office purposes.
OUE’s revaluation could be due to its status as a pure-play Singapore REIT after its disposal of Lippo Plaza in Shanghai.
The REIT still trades at an attractive valuation of 6.3% dividend yield and a P/B of 0.6x. I wouldn’t be surprised if valuations continue to creep up as OUE REIT does hold some quality Singapore properties.
Verdict
These REITs might not necessarily be as stable as the REITs making up the STI components, but they have shown that tough times don’t last, while tough REITs prevail.
These REITs have comfortably edged out the SPY over the last 6 months. And with interest rates slated to come down more, this could just be the beginning of the rally.
Then again, it wouldn’t be smooth sailing for every REITs so there are some that face a tougher challenge. But looking at the valuations, some would argue that the risk to reward ratio is just right.
Do you think so too?
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