Smaller Real Estate Investment Trusts (REITs) often escape investors’ attention, eclipsed by their larger, blue-chip peers.

However, when favourable sector dynamics intersect with disciplined execution, these smaller trusts can present outsized opportunities.

Three such names — Digital Core REIT (SGX: DCRU), Elite UK REIT (SGX: MXNU), and Prime US REIT (SGX: OXMU) — are scheduled to report earnings in February 2026. Each is tackling a different set of challenges through distinct strategic levers: AI-driven demand growth, portfolio repositioning, and an operational turnaround.

Here are the key factors dividend-focused investors should watch as these REITs seek to demonstrate resilience.

Digital Core REIT

Digital Core REIT owns and operates 11 freehold data centres across major global markets, including the US, Canada, Germany, and Japan, with total assets of approximately US$1.7 billion.

The trust has been a clear beneficiary of the AI-driven surge in data centre demand. For the first nine months of 2025 (9M2025), gross revenue soared 83.9% year on year to US$132.4 million.

Yet a notable divergence emerged: distributable income rose only 1.9% to US$35.2 million, as higher financing costs from recent acquisitions offset much of the operational upside.

As the REIT prepares to release its February results (expected around 4 February 2026), investor attention will centre on whether distribution per unit (DPU) can finally begin to reflect the sharp increase in revenue as acquisition-related debt stabilises.

A key catalyst lies in the 8217 Linton Hall redevelopment in Northern Virginia. Valued at US$243.1 million, the asset is located in a market where vacancy rates have fallen to a record low of just 0.3%. Any meaningful leasing updates could materially reshape the REIT’s earnings outlook.

Management has also demonstrated confidence through unit buybacks, repurchasing 1.8 million units year-to-date at an average price of US$0.565. With units currently trading at around US$0.54 — a 33% discount to net asset value — valuation remains compelling.

Supported by a conservative aggregate leverage of 38.5% and US$431 million of debt headroom, Digital Core REIT appears well positioned to capitalise on some of the tightest wholesale data centre pricing conditions seen in years.

Elite UK REIT

Elite UK REIT offers a defensive income profile, backed by 148 properties valued at £419.7 million as at 30 September 2025, with 99.1% of rental income ultimately supported by the UK government.

That said, the current story is one of transformation. The REIT is gradually reducing its reliance on the Department for Work and Pensions by acquiring assets such as Tŷ Merlin and Custom House, introducing a broader range of government occupiers.

These acquisitions delivered a gross rental income yield of 9.2%, exceeding the existing portfolio’s 9.0%, while extending the weighted average lease expiry (WALE) to 7.2 years, compared with 2.9 years for the legacy assets.

The key issue for the upcoming February results is progress on lease regearing for properties with 2028 expiries. Addressing this £352.1 million segment of the portfolio is critical to de-risking future income streams.

Beyond conventional leasing, Elite UK REIT is also repositioning parts of its portfolio toward higher-growth uses. Planning approvals for student accommodation developments in Dundee and Cardiff represent potential valuation uplift, while the Peel Park site in Blackpool stands out as the most ambitious initiative.

At Peel Park, a 120 MVA power supply has been secured, opening the door to a potential hyperscale data centre development.

With units trading at approximately £0.36, the REIT offers an attractive trailing yield of 8.4%. Investors should look to the February results (expected around 9 February 2026) for clearer timelines on these redevelopment projects, which could help narrow the gap between market price and analyst valuations.

Prime US REIT

Prime US REIT has endured the prolonged downturn in the US office sector following the pandemic, but signs of stabilisation are beginning to emerge.

In 3Q2025, gross revenue declined 2.7% year on year to US$33.0 million, while net property income fell 6.1% to US$16.8 million. Distributable income dropped to US$6.3 million, from US$8.5 million a year earlier.

Beneath these headline figures, however, operating indicators have improved. Portfolio occupancy rose to 80.7% by September, and rental reversions jumped sharply to 14.5% in 3Q2025, up from 4.3% in the prior quarter — signalling renewed pricing power for high-quality, Class A office assets.

The February earnings release will be particularly important, as it should reflect the initial revenue contributions from 452,000 square feet of leases signed over the past 18 months.

Investors will also be watching the rollout of the enhanced distribution policy. Management has committed to raising the payout ratio from 10% to at least 50%, a move supported by improved leasing visibility.

An equity raise of US$25 million in October 2025 has already reduced leverage to 44.9%, providing greater financial flexibility. Meanwhile, broader industry trends are turning more supportive: US office vacancies have declined for the first time in seven years, and investment sales volumes are up 45% year-to-date.

With units trading at around US$0.22 and a consensus target price of US$0.30, Prime US REIT offers potential upside of roughly 36%. Should the expected 18 February 2026 results confirm that lease commencements are translating into cash flow, the recovery thesis would gain further credibility.

Inflection Points Ahead

These three REITs are approaching pivotal moments where strategy must deliver tangible results. Digital Core REIT needs to convert AI-driven demand into higher distributions, Elite UK REIT is reshaping its portfolio for longer leases and stronger yields, and Prime US REIT is attempting to emerge from the trough of the office cycle.

All three trade at meaningful discounts to intrinsic value, offering a margin of safety for investors willing to look beyond large-cap names.

For dividend investors, the ultimate test lies in execution. Revenue growth alone does not generate income — sustainable free cash flow does.