A distribution yield above 6% tends to attract investors seeking a steady income stream.

Yet a high yield is not automatically a positive sign.

A REIT's yield can climb because distributions are rising, but it can also rise simply because the unit price has dropped.

That is why a high yield warrants closer scrutiny.

A softer unit price may signal worries about weaker rental income, higher interest costs or pressure on future distributions.

Below are three Singapore-listed REITs yielding more than 6%, each carrying a distinct mix of opportunities and risks.

Frasers Logistics & Commercial Trust (SGX: BUOU)

Frasers Logistics & Commercial Trust, or FLCT, owns logistics, industrial and commercial properties spanning Australia, Europe and Singapore.

The REIT's latest half-year results were stable.

For the first half of its financial year 2026 ended 31 March 2026 (1HFY2026), revenue rose by 2.8% year on year (YoY) to S$238.9 million.

Adjusted net property income (NPI) also increased by 3.6% YoY to S$167 million over the same period.

The improvement was driven partly by positive rental reversions and annual rent increases in its Australian and European logistics portfolios.

A full half-year of income from a Singapore logistics property bought in November 2024 and stronger foreign currencies also contributed.

For 1HFY2026, headline distribution per unit (DPU) declined 1.7% YoY to S$0.0295.

The weaker headline DPU partly reflected lower distributions from divestment gains.

However, excluding these divestment-related distributions, DPU jumped 11.9% YoY to S$0.0282.

As at 30 June 2026, FLCT's balance sheet remained relatively comfortable, with aggregate leverage at 35.4% and interest coverage ratio (ICR) at 4.6 times.

In July 2026, unitholders approved the REIT's S$441.5 million acquisition of four logistics properties in Germany and the Netherlands.

The deal will be fully funded by borrowings, and FLCT estimates its aggregate leverage will rise to around 38.7% once the purchase is completed.

Investors should watch how this affects financing costs.

Across its latest two half-year periods, the trust distributed a total of S$0.059 per unit.

Based on its closing price of S$0.87 on 9 October 2026, this translates to a trailing distribution yield of approximately 6.8%.

Sasseur REIT (SGX: CRPU)

Sasseur REIT invests in retail properties, offering investors exposure to outlet malls in China.

Unlike conventional retail REITs that rely mainly on fixed rental payments, Sasseur operates under an entrusted management agreement (EMA).

The arrangement combines a fixed rental component with a variable component linked to outlet sales.

This model thus allows the REIT to benefit when consumer spending at its malls increases.

For 1H2026 ended 30 June 2026, EMA rental income rose by 4.3% YoY to RMB350.7 million.

The rise was supported by a 7.4% YoY jump in portfolio sales to RMB2.34 billion.

According to the 1H2026 presentation, the conversion of former cinema space at the Hefei Outlet into a new retail precinct was nearing completion as of June 2026.

Demand for the new space was encouraging: 11 of the 13 retail units already pre-committed, with openings scheduled from August 2026.

The project could help Sasseur lift sales from existing assets without relying on property acquisitions.

The REIT's balance sheet also remained relatively strong.

Aggregate leverage stood at 25.6% while ICR reached a robust 5.6 times.

For 1H2026, Sasseur's DPU increased 10.2% YoY to S$0.03366.

Despite its recent growth, Sasseur faces an important contractual uncertainty.

Ahead of its April 2026 annual general meeting, management said it was still considering its options for the EMA, which expires in 2028.

Any changes to the EMA could affect the stability of future distributions.

Sasseur's latest two half-year distributions amounted to S$0.06449 per unit.

ESR-REIT (SGX: 9A4U)

ESR-REIT owns a mix of industrial, logistics and business park properties across Singapore, Australia and Japan.

For 1H2026, gross revenue came in at S$222.3 million, down 0.3% from a year earlier.

The REIT also reported a 2.2% YoY decline in NPI to S$162.7 million.

However, part of that decline reflects ESR-REIT's ongoing portfolio-reshaping efforts.

Across FY2025 and 1H2026, the REIT sold 10 non-core Singapore properties, which reduced rental income.

The manager plans to recycle the proceeds into six freehold logistics properties in Australia.

Looking only at the remaining portfolio, performance was more resilient, with same-store revenue up 2.3% YoY and NPI rising 0.7% YoY.

For 1H2026, portfolio occupancy stood at 91.9% and rental reversions reached 9.8%.

Despite the decline in headline property income, total DPU increased 2.4% YoY to S$0.1151.

Core DPU, which excludes one-off gains, rose 4.5% YoY to S$0.1125 and made up about 98% of the payout.

Regarding its risk exposure, aggregate leverage stood at 41.4% with its ICR at 2.6 times.

This makes refinancing costs and debt management more important considerations.

Separately, in August 2026, ESR-REIT disclosed that an Australian tenant contributing about 5.2% of its effective gross rents had defaulted on rent and entered administration.

After drawing on bank guarantees, the REIT's unrecovered arrears would fall from roughly A$12.2 million to about A$1.5 million.

However, a prolonged vacancy at the three leased properties could still weigh on rental income.

Over its latest two half-year periods, ESR-REIT paid out S$0.22185 per unit.

At its S$2.02 closing price on 9 October 2026, that works out to a trailing distribution yield of about 11%.

At a closing price of S$0.63 on 9 October 2026, this translates to a trailing distribution yield of approximately 10.2%.

Placing the yield in perspective

A high yield naturally stands out, but the number needs some context.

The benchmark 10-year Singapore Government Security yielded 2.45% on 9 October 2026, far below the yields offered by the three REITs.

However, that extra income comes with additional uncertainty.

REIT distributions can rise or fall, and investors are also exposed to movements in the unit price.

The table below compares the three REITs' yields at their FY2025 year-ends against their current trailing yields. Frasers Logistics & Commercial Trust posted 6.3% at its FY2025 year-end versus 6.8% now, Sasseur REIT went from 9.0% to 10.2%, and ESR-REIT climbed from 7.8% to 11%.

All three now offer higher yields than at their respective FY2025 year ends, although lower unit prices may also play a part.