While REITs are most likely poised to make a comeback in the next few years when interest rates taper down, I’m surprised that there has been less chatter about them compared with the past 2 years.
Yet, even as most REITs continue to trade at relatively affordable valuations, some REITs are actually hitting their all-time high (ATH) – based on adjusted returns.
Let me explain.
Since REITs pay out a steady stream of its earnings as dividends, their REIT prices typically adjust downwards on ex-dividend dates to reflect the dividends paid out (reducing the value of the REIT since earnings become cash distributed to unit holders).
Thus by “adding back” the distributions that a REIT has paid out over the years, we can compare REIT’s total shareholder returns on an apple-to-apple basis against growth stocks or even indices.
By adjusting the distributions back to REIT prices, there are a total of 8 REITs that have already hit ATH, and even outperformed the STI by quite a mile.
Curious which these eight REITs are?
1. Alpha Integrated REIT (SGX: M1GU)
AI-REIT, (formerly known as Sabana Industrial REIT), is a Singapore-listed real estate investment trust focused on high-quality industrial assets.
The REIT has long been a battleground for shareholder activism, but the underlying narrative has shifted from governance struggles to pure value realization. The REIT is trading at an adjusted ATH largely due to the undeniable resilience of its industrial portfolio.
While the market is distracted by headlines, AI-REIT’s assets, specifically its high-tech industrial and warehouse properties, continue to command positive rental reversions due to the tight supply of industrial space in Singapore.
From a valuation perspective, the recent rally has saw AI-REIT trading at a price-to-book (P/B) ratio close to 1x, which is its historical fair value. However, the REIT trades at an attractive dividend yield of approximately 6.7%.
That said, AI-REIT’s profile might not suit an income investor, or may only warrent just a small position despite its high yield. It might be a play for deep value investors who are betting on valuation reversion once all unwanted spotlights die down.
2. AIMS APAC REIT (SGX: O5RU)
AIMS APAC REIT stands out as the “Goldilocks” of the industrial sector – not too big to grow, but large enough to offer stability. Its journey to an adjusted ATH is built on a strategy of aggressive asset enhancement; rather than just collecting rent, management has actively redeveloped older properties into high-spec logistics hubs.
Valuation-wise, AA REIT commands a premium over smaller industrial peers but this remains reasonable given its growth profile. It trades at a P/B ratio of 1.25x, reflecting the high quality of its enhanced assets, and offers a competitive dividend yield of 6.3%.
3. Starhill Global REIT (SGX: P40U)
Often overlooked in favor of larger retail plays, Starhill Global REIT has quietly achieved an adjusted ATH by leveraging on the continued vibrancy of the luxury retail sector. Its prime assets on Orchard Road, Wisma Atria and Ngee Ann City, have benefited from the full normalization of global tourism and the resilience of high-net-worth spending.
While suburban malls rely on essential spending, Starhill’s master leases with anchor tenants like Toshin (Takashimaya) provided an unflappable income floor during volatile periods, while the recovery in variable rents has driven the recent total return outperformance.
Despite its prime location, Starhill remains one of the most undervalued assets on the board. It trades at a persistent discount, with a P/B ratio of 0.83x, suggesting the market still underestimates the replacement cost of its Orchard Road footprint. With a dividend yield of 6.1%, it offers one of the highest payouts among the retail REITs.
4. CapitaLand Integrated Commercial Trust (SGX: C38U)
As the bellwether of the S-REIT market, CICT’s ascent to an adjusted ATH is a testament of the “flight to quality.” Institutional capital has flocked to CICT because it owns the “crown jewels” of Singapore commercial real estate, such as Raffles City and CapitaSpring.
The REIT has successfully navigated the hybrid work transition, maintaining high occupancy in its Grade A offices while seeing its downtown malls roar back to life. Its sheer size and liquidity make it the default choice for big money entering Singapore, which buoys the price and keeps the total return trajectory moving upward.
Because of its perceived safety, CICT commands a “blue-chip premium.” It currently trades at a P/B ratio of 1.11x, meaning you are paying slightly above book value for the security it provides. Consequently, the dividend yield is tighter at around 4.7%.
5. Far East Hospitality Trust (SGX: Q5T)
Far East Hospitality Trust (FEHT) is the direct beneficiary of Singapore’s structural boom in tourism and events. Its adjusted ATH is driven by improving Revenue Per Available Room (RevPAR) across its hotels and serviced residences.
With Singapore cementing its status as a global concert and business hub in 2025, hotel rates have surged past pre-pandemic levels. FEHT’s unique structure which comprises mostly master leases with variable upside has allowed it to capture this revenue boom immediately, driving significant distribution growth that fueled its total return rally.
It trades at a P/B ratio of 0.68x, which is attractive given the replacement cost of hotel assets in land-scarce Singapore. The Dividend Yield stands at roughly 6.3%, offering a decent payout
6. CapitaLand Ascendas REIT (SGX: A17U)
CapitaLand Ascendas REIT is the “Industrial Titan” that has effectively become an index proxy for the entire sector. Its adjusted ATH is the result of massive scale and successful diversification into “new economy” assets like data centers and life sciences across developed markets (US, UK, Europe, Australia).
Even when traditional manufacturing slowed, CLAR’s exposure to high-growth sectors buoyed its earnings. The mathematical power of its long history of dividends means that long-term holders are sitting on massive compound gains, regardless of short-term price fluctuations.
Reflecting its status as a market darling, CLAR trades at a premium valuation with a P/B ratio of 1.31x. The market is willing to pay up for the safety of its diversified portfolio and strong credit rating. The dividend yield is approximately 5.3%, which is lower than smaller peers but comes with significantly lower risk.
7. Frasers Centrepoint Trust (SGX: J69U)
Frasers Centrepoint Trust has proven that boring is beautiful. Its adjusted ATH is built on the rock-solid resilience of suburban retail malls like Causeway Point and Waterway Point. These assets are virtually immune to economic downturns because they cater to essential daily needs like groceries, food courts, and services rather than discretionary luxury.
This defensive nature has allowed FCT to raise rents consistently year after year, creating a compounding machine that has outperformed almost every other retail counter on a total return basis.
The market prices FCT as a premium defensive asset. It trades at a robust P/B ratio of 1.01x, signaling high investor confidence in its asset values. The dividend yield is steady at 5.4%, reflecting its lower-risk profile.
8. United Hampshire US REIT (SGX: ODBU)
United Hampshire US REIT is the surprise inclusion on this list, defying the broader pessimism surrounding US real estate. Its recovery to an adjusted ATH is due to its specific focus on grocery-anchored strip centers and self-storage, rather than the troubled office sector.
The REIT’s high distributions during the downturn – often reaching double digits – meant that investors who reinvested have seen their total returns skyrocket as the unit price stabilized alongside the US economy.
Valuation remains the key draw here. It trades at a P/B ratio of 0.73x, heavily discounted due to the general stigma around US assets and tax structures. However, this risk is compensated by a standout dividend yield of 7.7%.
Verdict: Slow but steady wins the race
Quite a handful of REITs beat the STI returns when dividends are factored in. Yes it’s not exactly the speed of growth stocks, but hey, if its a cash generating assets, it still is a great asset class for recurring cashflow.
Some REITs however, are positioned more as a deep value play due to their relative cheap valuation. Best if historical valuations are consulted before making straightforward guesses on what may look like a discount outright.
But who knows, with rates eventually coming down, there could be a re-rate in valuations, and we could see the rally everyone has been hoping for.
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