S-Reits extend fundraising momentum in 2026
[SINGAPORE] Real Estate Investment Trusts in Singapore (S-Reits) have continued to demonstrate robust fundraising activity in 2026, building on the strong momentum of 2025.
For the year to Sep 10, S-Reits raised at least S$4.5 billion through equity fundraising (EFR) exercises, more than in the same period in 2025, the strongest year for Reit primary and secondary fundraising since 2021.
Leading the charts for 2026 is UI Boustead Reit ’s initial public offering (IPO) in March, which raised over S$1 billion. The IPO drew strong demand from institutional and retail investors, with the offering 3.3 times subscribed.
Over in the secondary market, larger S-Reits have led in terms of proceeds raised, with funds mainly channelled into acquisitions to strengthen portfolio scale and market positioning.
In January 2026, Keppel Reit raised S$886 million via a preferential offering on the basis of 23 new units for every 100 existing units. The proceeds were used to acquire an additional one-third interest in Marina Bay Financial Centre Tower 3.
Following completion, Keppel Reit’s portfolio value grew from S$9.8 billion to S$11.2 billion, and its exposure in Singapore rose from 75.8 to 79.0 per cent, reinforcing its status as a leading landlord of prime office buildings in the Singapore CBD.
In April, larger STI-constituent Reits tapped the equity market for substantial fundraising. CapitaLand Integrated Commercial Trust raised S$750 million through a private placement to partially finance the proposed acquisition of a 100 per cent interest in Paragon. The offering was upsized from S$600 million, and the enlarged offering was 4.8 times covered.
CapitaLand Ascendas Reit raised S$903.5 million in April after completing its private placement and preferential offering. The proceeds were used to partially finance acquisitions, including several logistics properties in Singapore, the United States and Spain, a 50 per cent interest in a business park space in Singapore, and a 49 per cent interest in a data centre in Japan.
More recently, Elite UK Reit completed a £7.4 million (US$10 million) private placement, with the proceeds intended to partially finance the proposed acquisition of five properties in the United Kingdom and the conversion of Lindsay House in Dundee into a purpose-built student accommodation facility.
The private placement was oversubscribed with strong participation from existing and new institutional investors, long-only funds, and high net worth individuals.
Elsewhere, Keppel DC Reit completed a S$625 million private placement in September 2026 to partially finance its acquisition of an 88.6 per cent interest in two freehold hyperscale colocation data centres in Japan.
The transaction was around 3.4 times covered after the placement was upsized from S$600 million. The acquisition will increase Japan’s contribution to portfolio rental income from around 9 to 23 per cent, while maintaining Singapore as the Reit’s largest market at 60 per cent of portfolio rental income.
Following completion, the Reit’s assets under management will grow to around S$7.6 billion from 27 data centres in 10 countries.
Knight Frank Singapore Research noted in a report in August that it expects deal flow to remain active amid continued flight-to-safety moves, supported by favourable interest rates in the second half of 2026.
It expects total investment sales for the full year 2026 to approach S$40 billion, similar to 2025, barring a significant deterioration in market conditions or unexpected widespread systemic shocks.
DBS Group Research noted in June 2026 that close to 85 per cent of S-Reit managers expect stable to lower interest costs in 2026, after the meaningful decline in benchmark rates during Q1 2026.
This should gradually support a recovery in distributable income and underpin sector distribution per unit (DPU) compound annual growth rate of about 3 per cent over FY2026 to 2027. SGX RESEARCH
Chan Rui Qi is director, and Raphael Lim is associate director of capital market development at SGX. For more research and information on Singapore’s Reit sector, visit sgx.com/research-education/sectors for the S-Reits & Property Trusts Chartbook.
