The Monetary Authority of Singapore (MAS) has announced a S$5 billion infusion into the equity market aimed at enhancing liquidity and attracting investors.

Singapore’s REITs, a critical component of its stock market, are poised to benefit from this move, drawing renewed interest from investors.

Fuelled by improved market sentiment and increased trading volumes, four well-established REITs with strong fundamentals stand to gain significantly.

Suntec REIT

Suntec REIT’s diverse portfolio spans office and retail properties in Singapore, Australia, and the UK. Traditionally, this large-cap S-REIT trades at a discount during market downturns.

The MAS liquidity push could attract institutional capital back to large-cap REITs, thus reducing valuation discrepancies.

In 3Q2025, operating metrics remained strong, with committed occupancy rates of 98.5% for Singapore offices, 99.3% for retail, 87.3% for Australia, and 92.5% for the UK. Rental reversions were robust at 8.5% for Singapore offices, 8.6% for retail, and 11.9% for Australia.

The balance sheet remains solid, with gearing slightly reduced to 41%, comfortably under the MAS regulatory limit of 50%. The interest coverage ratio stood at 2x, above the regulatory minimum of 1.5x.

DPU for 3Q2025 surged 12.5% YoY to S$0.01778, driven by stronger performance in Singapore, reduced financing costs, and a withholding tax reversal. Increased liquidity and market sentiment could bolster Suntec’s valuation and narrow its discount to NAV.

Keppel REIT

Keppel REIT holds Grade A office properties in Singapore, Australia, Japan, and South Korea. It continues to benefit from strong rental reversions due to resilient leasing demand.

The enhanced market liquidity could facilitate higher trading volumes and valuation multiples for institutional-grade REITs like Keppel.

In 3Q2025, the REIT’s gearing was 42.2% with 65% of borrowings on fixed rates. Committed occupancy improved to 96.3%, and rental reversions remained strong at 12% for 9M2025.

Despite strong operational fundamentals, distributable income from operations for 9M2025 decreased by 0.6% YoY to S$144.6 million. If management fees were paid fully in units, distributable income would have increased by 6.7% to S$155.3 million.

Currently, the REIT trades at a price-to-NAV ratio of about 0.86x, reflecting concerns over distribution growth. With substantial sponsor backing and a diversified office portfolio, Keppel REIT may attract greater interest with improved liquidity.

ESR-LOGOS REIT

Holding industrial and logistics properties in Singapore, Australia, and Japan, ESR-LOGOS REIT garners institutional interest due to its diverse portfolio.

The demand for logistics and industrial assets is bolstered by e-commerce growth and evolving supply chains. Enhanced market liquidity can improve the REIT’s access to capital.

For 3Q2025, the portfolio maintained its strength with 90.3% occupancy, slightly up from 91.2% in the previous quarter. About 71% of rental income comes from high-demand "new economy" logistics and industrial assets.

The balance sheet remains healthy, with gearing within the target range at 43.3%. The average cost of debt fell to 3.40% per annum.

Executing its "4R" strategy, the REIT is focusing on quality and balance sheet discipline by recycling capital, divesting non-core assets, and reinvesting in high-spec properties.

CapitaLand India Trust

CapitaLand India Trust (CLINT) offers Singaporean investors access to India’s IT and business parks, diversifying exposure into a high-growth market.

Enhanced market liquidity could increase CLINT’s visibility and trading volumes, attracting more institutional investors.

In 3Q2025, committed occupancy was at 91%, up from 89%, with a stable weighted average lease expiry of 3.6 years. Rental reversions were strong at 15% for the quarter.

The balance sheet continued to improve, with gearing reduced from 42.3% in Q2 2025 to 40.9% in Q3 2025. The average cost of debt stands at 5.8%, with 77.2% of borrowings on fixed rates.

With a growing portfolio in India’s office sector and an improving balance sheet, CLINT is likely to attract more interest from investors seeking regional diversification.

Implications for Investors

The S$5 billion equity boost could positively impact the broader REIT sector by increasing participation and potentially narrowing valuation gaps.

While underlying fundamentals remain crucial, increased liquidity may provide a favorable environment for well-managed trusts trading below their net asset value.