Invest, Trade and Save in Singapore, Syfe

Syfe

Invest, Trade and Save in Singapore

Syfe is an investment platform offering Managed Portfolios, Brokerage services, and Cash Management solutions to help people build wealth for a better future.

Thematic (Sector/Industry)

<ul><li>The interest rate cycle in Singapore typically correlates with the Fed.  According to June’s FOMC Summary of Economic Projections, based on median estimates, the Fed is expected to cut interest rates by 50bps (in two rate cuts) for the rest of 2025, with 25bps more (in one rate cut) in 2026.  </li><li>Based on latest futures from CME Group, the market is pricing in a 89% probability of rate cut during the Fed's next meeting in September.</li><li>The current easing cycle is a clear sector tailwind. The steep decline in 3M Singapore’s SORA from 3.03% in January to 1.85% in August, will benefit the sector in multiple perspectives: reduced funding cost, more stable cap rates to support asset valuations, as well as more attractive REIT valuation on the back of yield spreads.</li></ul>

The interest rate cycle in Singapore typically correlates with the Fed.  According to June’s FOMC Summary of Economic Projections, based on median estimates, the Fed is expected to cut interest rates by 50bps (in two rate cuts) for the rest of 2025, with 25bps more (in one rate cut) in 2026.  Based on latest futures from CME Group, the market is pricing in a 89% probability of rate cut during the Fed's next meeting in September.The current easing cycle is a clear sector tailwind. The steep decline in 3M Singapore’s SORA from 3.03% in January to 1.85% in August, will benefit the sector in multiple perspectives: reduced funding cost, more stable cap rates to support asset valuations, as well as more attractive REIT valuation on the back of yield spreads.

Singapore Office REITs: Interest Rate Easing Cycle Provides Earnings and DPU Upside

<ul>
<li>During Q2 2025, the S-REIT sector benefited from declining interest rates and improved sentiment, which enhanced the relative appeal of REIT dividend yields versus safer assets.</li>
<li>The three-month compounded Singapore Overnight Rate Average (SORA) fell from 3.02% in January to about 1.85% by end-July, reflecting easing domestic borrowing costs. While the US Federal Reserve has yet to cut its policy rate in the first half, market expectations of rate relief later in 2025 grew.</li>
<li>This backdrop supported S-REIT valuations, as investors anticipated lower financing costs and improved sentiment for yield-oriented investments.</li>
</ul>


During Q2 2025, the S-REIT sector benefited from declining interest rates and improved sentiment, which enhanced the relative appeal of REIT dividend yields versus safer assets.
The three-month compounded Singapore Overnight Rate Average (SORA) fell from 3.02% in January to about 1.85% by end-July, reflecting easing domestic borrowing costs. While the US Federal Reserve has yet to cut its policy rate in the first half, market expectations of rate relief later in 2025 grew.
This backdrop supported S-REIT valuations, as investors anticipated lower financing costs and improved sentiment for yield-oriented investments.


Syfe S-REITs Tracker: Q2 2025 - S-REITs Continue to Deliver Attractive Yields Amid Falling Rates

Research from SooChow CSSD Capital Markets (Asia), SCCM Asia Research

SCCM Asia Research

Research from SooChow CSSD Capital Markets (Asia)

Headquartered in Singapore, SooChow CSSD Capital Markets (Asia) is an investment bank focusing on emerging growth companies across Asia, providing a full suite of investment banking services, including corporate finance, mergers and acquisitions advisory, equity capital markets, institutional equities sales and trading and equities research.

SooChow CSSD Capital Markets (Asia)

<ul><li><a href="https://www.smartkarma.com/entities/oue-commercial-real-estate-investment-trust" target="_blank" data-smartkarma-citation="entities:912" rel="noopener">OUE Commercial REIT (OUECT SP)</a> completed S$978m unsecured sustainability-linked loan refinancing</li><li>Telok Blangah House relaunched at a lower guided price of S$1,744psf</li><li>Shunwei Capital’s co-founder looks to acquire 999-year leasehold property in Bali Lane for S$23m; Samsung Hub strata office transacts at S$4,050psf</li></ul>

OUE Commercial REIT (OUECT SP) completed S$978m unsecured sustainability-linked loan refinancingTelok Blangah House relaunched at a lower guided price of S$1,744psfShunwei Capital’s co-founder looks to acquire 999-year leasehold property in Bali Lane for S$23m; Samsung Hub strata office transacts at S$4,050psf

ASEAN Builder's Scoop (18Aug22) - OUECT Secured Largest Sustainability-Linked Loan in SREIT to Date

<ul><li><a href="https://www.smartkarma.com/entities/aims-amp-capital-industrial" target="_blank" data-smartkarma-citation="entities:933" rel="noopener">AIMS APAC REIT (AAREIT SP)</a> 1Q23 DPU +1.3% YoY; Robust occupancies and rental reversion continue to drive organic growth</li><li><a href="https://www.smartkarma.com/entities/mapletree-industrial-trust" target="_blank" data-smartkarma-citation="entities:40" rel="noopener">Mapletree Industrial Trust (MINT SP)</a> 1Q23 DPU +4.2% YoY; Flat quarterly performance despite occupancies trending up</li><li><a href="https://www.smartkarma.com/entities/keppel-dc-reit" target="_blank" data-smartkarma-citation="entities:85" rel="noopener">Keppel DC REIT (KDCREIT SP)</a> 2Q22 DPU +4.8% YoY; Robust occupancy, trading attractively at 5.3% FY23E yield</li></ul>

AIMS APAC REIT (AAREIT SP) 1Q23 DPU +1.3% YoY; Robust occupancies and rental reversion continue to drive organic growthMapletree Industrial Trust (MINT SP) 1Q23 DPU +4.2% YoY; Flat quarterly performance despite occupancies trending upKeppel DC REIT (KDCREIT SP) 2Q22 DPU +4.8% YoY; Robust occupancy, trading attractively at 5.3% FY23E yield

ASEAN Builder's Scoop (26Jul22) - AAREIT Robust Operating Metrics

<ul><li><a href="https://www.smartkarma.com/entities/lhn-ltd" target="_blank" data-smartkarma-citation="entities:27234" rel="noopener">LHN Ltd (LHN SP)</a> 1H22 PATMI +117.4% YoY; More Co-living properties will be launched in 2H22</li><li><a href="https://www.smartkarma.com/entities/ec-world-reit" target="_blank" data-smartkarma-citation="entities:22842" rel="noopener">EC World Reit (ECWREIT SP)</a> 1Q22 DPU -9.7% YoY; Timing difference in pre-termination compensation received</li><li><a href="https://www.smartkarma.com/entities/oue-commercial-real-estate-investment-trust" target="_blank" data-smartkarma-citation="entities:912" rel="noopener">OUE Commercial REIT (OUECT SP)</a> 1Q22 Business Updates – RevPAR recovery appears slow and Commercial occupancy remains flattish at low 90%</li></ul>

LHN Ltd (LHN SP) 1H22 PATMI +117.4% YoY; More Co-living properties will be launched in 2H22EC World Reit (ECWREIT SP) 1Q22 DPU -9.7% YoY; Timing difference in pre-termination compensation receivedOUE Commercial REIT (OUECT SP) 1Q22 Business Updates – RevPAR recovery appears slow and Commercial occupancy remains flattish at low 90%

ASEAN Builder's Scoop (13May22) - LHN Co-Living Bearing Fruits

Singapore

OUE Real Estate Investment Trust is a Singapore-based diversified real estate investment trust that invests in income-producing properties primarily for hospitality, retail, and office purposes. Its portfolio includes prime office buildings, high-end retail malls, and upper upscale hotels in Singapore and Australia. The company was constituted in 2013 and is headquartered in Singapore.

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OUE (OUEREIT SP)

Singapore Office REITs: Interest Rate Easing Cycle Provides Earnings and DPU Upside

The interest rate cycle in Singapore typically correlates with the Fed. According to June’s FOMC Summary of Economic Projections, based on median...

Syfe

Syfe S-REITs Tracker: Q2 2025 - S-REITs Continue to Deliver Attractive Yields Amid Falling Rates

During Q2 2025, the S-REIT sector benefited from declining interest rates and improved sentiment, which enhanced the relative appeal of REIT...

Syfe

ASEAN Builder's Scoop (18Aug22) - OUECT Secured Largest Sustainability-Linked Loan in SREIT to Date

Telok Blangah House on market for S$92m; AME REIT to list on 20Sep22, ample gearing for acquisitions; Phils BSP hints further rate hikes

SCCM Asia Research

ASEAN Builder's Scoop (26Jul22) - AAREIT Robust Operating Metrics

MINT flat quarterly performance; KDCREIT trades attractively at 5.3% yield; CLCT expects retail recovery in 2H22; OUECT massive hotel turnaround;...

SCCM Asia Research

ASEAN Builder's Scoop (13May22) - LHN Co-Living Bearing Fruits

ECWREIT timing difference in compensation; OUECT recovery appears slow; UHU min leasing risk; FPL boosted invt props; SMPH reopening play for malls

SCCM Asia Research

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