Three leading Singapore REITs are boosting their distributions for 2025, but their approaches to this increase are far from uniform.

Each of these REITs has chosen a distinct strategy.

Keppel DC REIT (SGX: AJBU) is focusing on aggressive expansion through data centre acquisitions.

Frasers Cpt Tr (SGX: J69U), on the other hand, is balancing strategic acquisitions with stringent cost management.

Meanwhile, Mapletree Pan Asia Commercial Trust (SGX: N2IU) demonstrates that it's possible to raise distributions even in the face of declining revenue.

These varied strategies provide dividend investors with deeper insights into which sectors have genuine growth prospects and which require more cautious navigation.

Keppel DC REIT: Leveraging Data Centre Growth

Keppel DC REIT posted a stellar performance, with distributable income surging by 55.5% year on year to S$195.3 million for the first nine months of 2025.

This increase resulted in a DPU of S$0.0767, an 8.8% increase year over year.

The primary driver of this growth was the acquisition of more data centres.

The REIT added Keppel DC Singapore 7 & 8 and Tokyo Data Centre 1, which boosted gross revenue by 37.7% to S$322.4 million.

Net property income jumped 42.2% to S$280.2 million.

The portfolio's quality remained strong, with occupancy at a healthy 95.8% and a weighted average lease expiry of 6.7 years by lettable area.

The REIT experienced a 10% portfolio reversion, indicating sustained pricing power.

Keppel DC REIT continues to expand, acquiring Tokyo Data Centre 3, a hyperscale facility with built-in rent escalation expected to be completed by year-end.

Additionally, the REIT is divesting its NetCo bonds and preference shares to focus exclusively on data centre assets, with the Basis Bay Data Centre divestment expected to conclude this quarter.

This strategic shift positions the REIT to capitalize on the AI infrastructure boom, but the sustainability of this acquisition-led growth remains uncertain amidst potential capital constraints.

Frasers Cpt Tr: Navigating Dilution

Frasers Centrepoint Trust took a different path, reporting gross revenue of S$389.6 million for FY2025, an increase of 10.8% year on year.

Net property income rose by 9.7% to S$278.0 million.

DPU, however, saw a modest increase of 0.6% to S$0.12113 compared to S$0.12042 in FY2024.

This modest improvement was due to the dilution from the S$1.1 billion acquisition of Northpoint City South Wing, completed on 26 May 2025.

Investors face the classic dilemma of short-term dilution versus long-term portfolio enhancements, with the long-term benefits of Northpoint City's acquisition set to unfold over time.

Encouragingly, operational resilience remains strong.

Rental reversion stood at 7.8% for FY2025, while shopper traffic increased by 1.6% year on year and tenant sales grew by 3.7%.

Portfolio occupancy was at 98.1%, or 99.9% excluding Cathay Cineplexes' exit at Causeway Point and Century Square.

The REIT also improved its financial health, reducing its cost of debt to 3.5% in Q4 from 4.1% in FY2024.

This trend is vital for maintaining distributions.

The Hougang Mall asset enhancement initiative (AEI) is progressing well, with over 80% leasing pre-commitment and targeted completion by September 2026.

Combined with the divestment of Yishun 10 Retail Podium in September 2025, FCT is actively recycling its portfolio for quality improvements.

Mapletree Pan Asia Commercial Trust: Strategically Managing a Downturn

Mapletree Pan Asia Commercial Trust presents a unique scenario.

For the second quarter of FY25/26, gross revenue declined by 3.2% year on year to S$218.5 million, while net property income dropped by 2.2% to S$163.9 million.

Nevertheless, DPU increased by 1.5% to S$0.0201.

This was achieved through significant cost savings and strategic debt reduction amidst lower operating expenses and finance costs.

While this reflects management’s adeptness, questions about the sustainability of these measures arise if revenue does not stabilize.

Portfolio metrics reveal a mixed picture, with committed occupancy at 88.9% and flat rental reversion of negative 0.1% for the first half.

VivoCity’s strong 14.1% rental reversion is masking weaknesses in overseas markets, particularly Hong Kong’s Festival Walk, where tenant sales dropped by 2.6% to HK$1,696.4 million.

The revenue decline was mainly due to divestments such as Mapletree Anson in July 2024 and two Japanese office buildings in August 2025, bringing in a combined JPY 8,730 million (approximately S$78.7 million).

These sales signal a defensive rather than a growth stance in MPACT’s portfolio management.

Nonetheless, the completion of VivoCity's Basement 2 asset enhancement in late August 2025 added 14,000 square feet of lettable area with an estimated ROI exceeding 10%, a positive note in their recovery strategy.