Some REITs have quietly continued to deliver solid long-term results, even if their recent performance looks lacklustre. In particular, we’ve found three Singapore-listed REITs that have negative returns over the past five years—but still boast strong 10-year gains (at least 86% gain.) These aren’t failing businesses; they may simply be misunderstood by the market, caught in a broader cycle. That sets the stage for a potential mean reversion.
The 3 REITs to Watch
The three REITs—Frasers Logistics & Commercial Trust (FLCT), Mapletree Industrial Trust (MIT), and Mapletree Logistics Trust (MLT)—all share a common trait: they’ve shifted their portfolios toward sectors that are seeing rising demand, such as logistics, industrial properties, and data centres. At the same time, they’ve maintained high occupancy rates, managed debt conservatively, and actively upgraded their properties. Taken together, these moves suggest they are positioning for future growth, even if near-term returns haven’t yet caught up.
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| REIT | Sector | Geography | Portfolio Details |
| Frasers Logistics & Commercial Trust (FLCT) | Logistics & Industrial (L&I) and Commercial (CBD office space, non-CBD office space, and R&D/business park space). | Developed markets: Australia, Germany, the United Kingdom (UK), Singapore, and the Netherlands. | Comprises 112 properties (104 L&I, 8 Commercial). Portfolio Value is approximately $6.8 billion. 75.3% of the portfolio by value is freehold. |
| Mapletree Industrial Trust (MIT) | Industrial (Singapore) and Data Centres (worldwide beyond Singapore). | Singapore (47.6%), North America (45.6%), and Japan (6.8%) by AUM. | Portfolio consists of 141 properties (83 in Singapore, 56 in North America, 2 in Japan). Assets under management (AUM) totaled S$9,144.3 million. Data Centre assets are primarily on triple net lease structures (73.9% by gross rental income). |
| Mapletree Logistics Trust (MLT) | Logistics assets. | Asia Pacific, including Singapore, Australia, China, Hong Kong SAR, India, Japan, Malaysia, South Korea, and Vietnam. | MLT manages a diversified portfolio of 180 quality, well-located, income-producing logistics assets. Total assets under management were S$13.2 billion as at 31 March 2025. |
Frasers Logistics & Commercial Trust (FLCT)
FLCT is steadily shifting its focus toward logistics and industrial (L&I) assets—a move well aligned with long-term trends like the rise of e-commerce and supply chain diversification. Today, its L&I portfolio already accounts for a significant portion of its business, boasting a high occupancy rate of 93.9% and benefiting from tenant demand and positive rental reversions.
In 1H25, revenue grew 7.5% year-on-year. There was a 13.8% decline in distribution per unit (DPU), largely due to the increase in finance costs and tax expense. FLCT continues to display financial prudence, maintaining a gearing ratio of 36.1% and a strong interest coverage of 4.5x. About 69.7% of its debt is hedged at fixed rates, and currency risk on distributions is actively managed—providing stability in a high-rate environment.
FLCT is also taking a proactive approach to future growth. It is rebalancing its portfolio to further increase exposure to L&I assets by leveraging its sponsor’s Right-of-First-Refusal (ROFR) and engaging in forward funding deals. Recent examples include state-of-the-art developments in the UK and the Netherlands, aimed at securing high-quality, income-producing properties in key markets.
Beyond acquisitions, the trust is enhancing value through asset optimization. A good example is the major façade improvement at Central Park in Perth, which boosts thermal efficiency and tenant appeal. Across its commercial assets, FLCT is also working closely with tenants to adapt to new work models and evolving space needs.
Sustainability remains a core focus. A remarkable 72% of FLCT’s borrowings are now in the form of green or sustainable financing, placing it ahead of peers in integrating ESG principles into its capital structure.
Overall, FLCT’s disciplined financial management, strong logistics exposure, and forward-looking asset strategy make it a resilient player in a changing real estate landscape—one that is increasingly favouring industrial over commercial assets.
Mapletree Industrial Trust (MIT)
MIT has been steadily repositioning its portfolio towards one of the fastest-growing segments in real estate: data centres. While it started with a strong industrial base in Singapore, the trust now derives more than half of its portfolio value from data centres across North America and Asia. This shift reflects a deliberate strategy to tap into the digital infrastructure boom driven by cloud adoption and the hyperscale computing wave.
A key move in this direction was MIT’s acquisition of a freehold, mixed-use property in Tokyo—strategically located in a prime data centre cluster. While it doesn’t contribute meaningfully today, it’s intended for redevelopment into a state-of-the-art data centre. This is part of MIT’s broader plan to sharpen its focus on higher-value tenants, particularly cloud service providers and colocation operators, which offer more stability and long-term growth potential.
Despite the challenging interest rate environment, MIT delivered stable results for FY24/25. Gross revenue rose by 2.1% year-on-year, and the trust managed a slight increase in distribution per unit (DPU) of 1.0%, supported by solid rental reversions—particularly in Singapore, where it achieved a 9.2% uplift. To manage borrowing costs, MIT has hedged 78.1% of its debt at fixed rates, demonstrating prudent capital management. It also activated its Distribution Reinvestment Plan (DRP) to preserve cash and support ongoing investments.
Importantly, MIT is taking steps to future-proof its portfolio. It is actively managing its North American exposure, while relying on the stability of its Singapore and Japan assets to cushion regional volatility. Sustainability is also high on the agenda—MIT recently completed the third phase of its solar panel installation program, exceeding its long-term targets well ahead of schedule.
With a clear vision to become a leading player in global digital infrastructure, MIT’s steady transformation into a data centre powerhouse makes it one of the more compelling REITs for investors looking beyond traditional industrial plays.
Mapletree Logistics Trust (MLT)
MLT is one of Asia’s leading logistics REITs, with a diversified portfolio spanning nine Asia-Pacific markets. Despite near-term financial pressures, it continues to reposition itself for long-term growth through active portfolio rejuvenation and expansion into emerging Southeast Asian economies.
In FY24/25, MLT maintained a healthy occupancy rate of 96.2%, supported by strong regional demand for modern warehousing and distribution space. However, distribution per unit (DPU) fell 10.6%, largely due to higher interest costs, foreign currency depreciation, and income loss from divested assets. Rather than being caught off guard, MLT leaned into this cycle as an opportunity to sharpen its portfolio.
It executed S$209 million worth of divestments—offloading older or lower-yielding properties—and reinvested the capital into higher-quality logistics assets. This included three modern, green-certified properties in Malaysia and Vietnam acquired from its sponsor. These markets are increasingly benefiting from global supply chain shifts, and MLT’s strategic presence positions it well to capture rising demand driven by nearshoring and regional consumption growth.
Internally, MLT has been upgrading key assets to unlock greater value. A standout project is the redevelopment of 5A Joo Koon Circle in Singapore into a state-of-the-art ramp-up facility, resulting in a 2.3x increase in gross floor area. These asset enhancement initiatives (AEIs) not only boost rental income but also ensure MLT’s portfolio stays relevant amid evolving tenant expectations.
Sustainability has also become a core pillar of MLT’s value strategy. The trust has steadily increased its environmental credentials, with 51% of its net lettable area now under green leases. Greening its portfolio not only supports ESG targets but also enhances appeal to institutional tenants and long-term investors.
At the heart of MLT’s strategy is its “Portfolio Rejuvenation” vision—an ongoing cycle of recycling capital from older properties into newer, higher-specification assets. With a disciplined approach to capital management, a clear tilt toward Emerging Asia, and a growing portfolio of eco-certified properties, MLT remains well-positioned to ride Asia’s structural logistics transformation.
What They All Have in Common: Future-Ready Moves
Despite their different focuses, all three REITs are pursuing a similar playbook: strengthening core operations, upgrading key assets, and expanding into high-growth segments. They are also leaders in sustainable financing and green initiatives. FLCT leads with 72% of its borrowings under sustainable finance. MIT and MLT have followed suit with green loans, solar installations, and environmentally friendly building upgrades.
These REITs are not sitting still. They are not waiting for rates to fall before acting. Instead, they’re proactively managing risk by hedging debt and ensuring financial flexibility. While commercial and office-focused REITs struggle with occupancy and structural change, especially in cities like San Francisco and Hong Kong, these industrial-focused REITs are moving in the opposite direction—into areas of rising demand.
Conclusion
If you believe that logistics and digital infrastructure will continue to grow, then these three REITs are among the best-positioned in Singapore to benefit. They each bring a different angle: FLCT is doubling down on warehouses, MIT is evolving into a global data centre specialist, and MLT is taking the lead in Asia’s logistics transformation.
Market sentiment may still be cautious, especially with interest rates staying high. But for long-term investors, these names could represent quality plays on sale. Mean reversion may take time, but when fundamentals and strategy align, patient investors may get rewarded.
