Three Temasek-Backed S-REITs Worth a Closer Look as STI Slips

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When unit prices slide, they dominate the headlines, while the distributions behind them are often overlooked.

As of the close on 14 October 2026, the Straits Times Index was trading 7% below its 52-week peak.

Before deciding to sell, investors should check whether the income stream underpinning each unit is still expanding.

Temasek, a global investment company based in Singapore, holds a deemed interest in the three Singapore real estate investment trusts (S-REITs) discussed below.

Let's examine how these three REITs are truly performing on a fundamental level.

Is CICT's DPU growth outpacing its larger unit base?

CapitaLand Integrated Commercial Trust (CICT) is the largest REIT in Singapore by market capitalisation.

It holds retail, office and integrated development properties, with total assets of S$28.2 billion as at 30 June 2026.

In the first half of 2026 (1H2026), CICT's gross revenue increased 7.5% year on year (YoY) to S$846.8 million.

Net property income (NPI) grew 8.7% to S$630.5 million, while distribution per unit (DPU) rose 7.1% to S$0.0602.

Here's the key point: CICT's unit base expanded 5.8% during the period.

Yet DPU still grew faster.

Simply put, each existing unit captured a larger share of the pie.

Stepping up to full ownership of CapitaSpring and adding income from Gallileo in Frankfurt drove most of this growth, helping to offset the divestment of Bukit Panjang Plaza.

Portfolio occupancy improved 0.4 percentage points quarter on quarter to 95.6%, while rental reversions reached 4.0% for retail and 6.5% for office.

CICT wrapped up its S$3.9 billion acquisition of Paragon on 1 July 2026, shortly after the half-year period closed.

Management anticipates completing the sale of Asia Square Tower 2 for approximately S$2.45 billion in the second half of the year.

Until that deal is officially finalised, it remains an execution risk worth watching.

Aggregate leverage stood at a solid 37.4%, with the average cost of debt steady at 2.9%.

Why did CLAR's DPU hardly budge when income rose 8.6%?

CapitaLand Ascendas REIT (CLAR) owns 234 properties spanning Singapore, Australia, the US, the UK/Europe and Japan, with a portfolio valued at S$20.1 billion as at 30 June 2026.

In 1H2026, CLAR's gross revenue grew 6.7% YoY to S$805.5 million.

NPI increased 6.2% to S$556.1 million, and distributable income rose 8.6% to S$359.4 million.

DPU, however, edged up just 0.1% to S$0.07482.

So where did that growth go?

CLAR raised equity in both 1H2025 and 1H2026.

It now distributes a larger income pool across a greater number of units.

The underlying business expanded, but unit dilution kept the payout per unit nearly unchanged.

Rental reversion came in at 8.5%, and management expects high single-digit reversions for the full year.

CLAR completed S$1.1 billion in acquisitions during the half and intends to divest Kim Chuan Telecommunications Complex for S$200.4 million, representing a 32% premium to its valuation.

On the other hand, occupancy dropped to 89.1% from 91.8% a year earlier.

Two newly completed properties weighed on the figure.

Without them, occupancy would have been 90.3%.

Aggregate leverage was 39.7%, and cost of debt was 3.5%.

Can MLT grow its DPU amid currency and China headwinds?

Mapletree Logistics Trust (MLT) owns 175 logistics properties across nine Asia-Pacific markets, with assets under management of S$13.1 billion as at 30 June 2026.

Note that MLT's financial year ends in March, so its latest figures cover 1QFY2027 and do not align directly with the half-year figures above.

Gross revenue rose 0.8% YoY to S$178.9 million, NPI grew 2.0% to S$156.4 million, and DPU inched up 0.2% to S$0.01816.

A new warehouse in Mumbai and a full quarter from Mapletree Joo Koon Logistics Hub contributed revenue.

Weaker China contributions, divested assets and softer Asian currencies pulled in the opposite direction.

Excluding currency effects, gross revenue and NPI would have grown 2.0% and 3.1% respectively.

Borrowing costs declined 2.7% YoY to S$38.3 million.

After the quarter, MLT announced the sale of three properties worth about S$155 million, including 39 Changi South Avenue 2, which is being sold at a 20.3% premium to valuation.

The risks lie in the operating numbers.

Occupancy slipped to 96.4% from 96.9% three months earlier.

Rental reversion was 0.9%, or 2.3% excluding China.

At 40.5%, MLT's aggregate leverage is the highest among the three.

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