Investing Updates : REIT Watch – Industrial S-REITs report NPI growth, but managers are cautious on outlook

Source : 

https://www.sgx.com/research-education/market-updates/20250513-reit-watch-industrial-s-reits-report-npi-growth-managers?utm_medium=social&utm_source=sgxinvest-TG&utm_campaign=REIT%20Watch

Apple Intelligence : 

• Industrial S-REIT Performance: Industrial S-REITs reported NPI growth in Q1 2025 due to stable occupancies and positive rental reversions.

• Manager Sentiment: Despite the positive performance, managers remain cautious about the outlook due to macroeconomic challenges.

• Focus Areas: Managers are emphasizing tenant retention and cost management.

• MINT’s Financial Performance: Distribution per unit rose by 1% to S$0.1357, driven by revenue growth from Osaka Data Centre, Tokyo acquisition, and Singapore properties.

• MLT’s Financial Performance: Stable operating performance with 96.2% occupancy and positive rental reversions, but NPI slipped due to lower revenue from China, divested properties, and weakening regional currencies.

• AIMS APAC Reit’s Financial Performance: Stable portfolio occupancy, 20% positive rental reversions, and DPU growth of 2.6% to S$0.096.

• Financial Performance: Distributable income increased by 7% to S$44.2 million in 1Q25, with NPI rising by 22% to S$16 million.

• Rental Reversion: Sabana Industrial Reit reported a 15.3% positive rental reversion in the first quarter, marking four consecutive years of double-digit growth.

• Impact of Trade Tariffs: While trade tariffs pose challenges, the impact on S-REITs is expected to be mitigated by factors like long-term leases and potential reshoring of manufacturing.