Singapore REITs: Heading into 1H26 Reporting

Research evidence excerpt

Singapore REITs: Heading into 1H26 Reporting

Idea

July 22, 2026 03:47 PM GMT

Morgan Stanley Asia (Singapore) Pte.+MASEAN Property | Asia Pacific Derek Chang

Equity Analyst

Singapore REITs: Heading into Derek.Chang@morganstanley.com +65 6834-6512

1H26 Reporting

Singapore REITs are due to report 1H26 earnings. We outline our

ASEAN Property

expectations and what we are watching out for. Asia Pacific

Industry View In-Line

We expect continued bifurcation in operational performance for our listed REIT

coverage – between those that own Singapore assets versus overseas assets (such

as MPACT's Greater China commercial as well as Suntec REIT's AU and UK

commercial exposure, which are likely to stay challenged). We still expect to see

Singapore buildings (office, retail, industrial and data centres) show resilient rental

reversions and robust occupancy.

We will also watch out for further management updates on development/

redevelopment plans and/or strategic reviews. These include: FCT's recently

announced joint greenfield development of a mall at Bayshore Drive, Singapore (a

relative rarity for Singapore REITs. which usually acquire mature income-producing

assets), Keppel DC REIT's redevelopment plans for SGP 1, as well as the ongoing

strategic review at Suntec REIT (with a newly appointed Chairman on its board).

REITs with higher foreign denominated loan exposure are also a concern. Singapore

REITs use foreign-currency debt to naturally hedge assets held in overseas markets.

Our in-house view is that AUD, EUR and GBP rates are all on hold at cycle highs

through 2026 with cuts only in 2027, JPY has just moved off a decades-long near-

zero regime with further hikes now expected in Dec-26 and Jun-27 (faster than

earlier assumed), while USD is on hold until c.March 2027.