To The Moon

THE reporting season for Singapore real estate investment trusts (S-REITs) has kicked off, with $Alpha Integrated REIT(M1GU.SI)$ and $Keppel DC Reit(AJBU.SI)$ releasing their 1Q26 business updates on April 16. This was followed by $KOREReitUSD(CMOU.SI)$ ’s business update on April 17, with all three S-REITs highlighting improvements in operating or financial metrics.

A further 25 S-REITs have also confirmed that they will report their financial results or business updates between April 21 and May 13. Among them, four will report full-year financial results, two will report first-half financial results, and another 19 will provide quarterly business updates.

1. $Alpha Integrated REIT(M1GU.SI)$

Alpha Integrated REIT delivered a steady operating performance in 1Q26, supported by proactive lease management, with committed portfolio occupancy rising to 91.4% as of Mar 2026, from 86.4% a year earlier. 

The REIT also recorded strong rental growth, with portfolio rental reversion of 12.0% in 1Q26, with positive rental reversion across all asset clusters. Capital management metrics also improved, with all-in financing costs falling to 3.85% from 4.57% a year ago, while interest coverage ratio rose to 4 times, from 3.2 times over the same period.

2. $Keppel DC Reit(AJBU.SI)$

Meanwhile, Keppel DC REIT posted stronger earnings in 1Q26, with distribution per unit (DPU) rising 13.2%, supported by higher gross revenue and a 19.4% increase in net property income (NPI). This was driven by earnings contributions from the acquisition of Tokyo Data Centre 3, as well as strong portfolio performance.

The REIT’s portfolio occupancy was stable at 95.6%, while it also recorded portfolio rental reversion of 51% during the quarter.

Keppel DC REIT’s manager noted that the REIT has strong income visibility, underpinned by renewal of major contracts in 2024 and 2025, with only around 6 per cent of rental income up for renewal per annum in 2026 and 2027. 

It also expects limited first‑order impact from the ongoing Middle East conflict, given that net electricity costs account for less than 3% of operating expenses and are largely hedged through power procurement contracts until end‑2026.

3. $KOREReitUSD(CMOU.SI)$

Elsewhere KORE reported a 4.3% improvement in income available for distribution, as gross revenue and NPI grew. 

The REIT reported portfolio rental reversion of 0.8%, while portfolio occupancy slipped slightly to 85.1% due to a vacancy in its Westpark Portfolio, but the manager noted that negotiations are underway to backfill a portion of the space. 

KORE’s manager also observed that US office leading activity has reached post-pandemic highs and is projected to pick up further through 2026, supported by lease expiries and constrained new supply. It added that office led 2025 price growth across major asset classes, with rebounding transaction volumes and selective large deals—momentum that could extend into 2026.

S-REITs faced headwinds in the first quarter of 2026, with the iEdge S-REIT index falling 8%, amid investor concerns of stagflation following the Middle East conflict. However, the index has since rebounded 5.2% in the second quarter-to-date. 

Despite the macro uncertainty, analysts from DBS Group Research noted in an end-March report that S-REITs are coming from a position of relative strength, with largely stabilised balance sheets, a high proportion of fixed or hedged debt, and favourable refinancing dynamics.

The analysts added that the stagflationary background may curb sentiment and near-term re-rating, but they see limited broad earnings downside absent a sustained, material rise in SGD interest rates, and favour S-REITs with earnings visibility, strong tenant quality and embedded rental growth.