Singapore, December 1, 2025 – Singapore REITs are likely to gradually align with broader gains in the equities market, according to analysts at UOB Kay Hian.

Analyst Jonathan Koh noted that the Singapore REIT sector has so far lagged behind the recovery seen in local equities, despite support from lower domestic interest rates. With safe-haven inflows expected to keep rates low, the cost of debt for REITs appears to have peaked, he added.

Koh maintained an overweight rating on Singapore REITs, highlighting a preference for blue-chip names with specific growth catalysts. Among these, CapitaLand Ascendas REIT stands out, as it recently upgraded its outlook for gains in renewed rent rates, further supporting its investment appeal.

The analyst expects the combination of stable financing costs and selective property performance to help REITs gradually close the gap with the broader market, offering investors both yield and potential capital appreciation.