Value Talk, Real Walk is a new monthly column by Smartkarma, dedicated to tracking how Singapore-listed companies are unlocking value through divestments, buybacks, governance reform and disciplined capital return. Drawing on insights from the Smartkarma Singapore Value-Up Indices and independent research published on the platform, each edition highlights firms that turn intent into execution.
The month in review
After seven straight months of gains, the Smartkarma Singapore Value-Up All-Cap Index slipped 1.9% in October, its first decline since December 2024.
Large caps led with a 2.1% gain, helped by financial and industrial names executing on restructuring and capital-return programmes. Meanwhile, small- and mid-caps eased modestly as liquidity thinned, though cumulative returns continue to reflect the ongoing re-rating of reform-minded firms.
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Sector pulse: Holding the line
Sector performance in October reflected a market pausing to reassess. Industrials continued to lead, extending their dominance as investors rewarded firms executing on asset recycling and efficiency gains. Real estate dipped slightly, though it remains one of the year’s top performers amid continued divestment and spin-off activity. Healthcare, information technology and materials were broadly flat, a sign that investors are rewarding visible execution and disciplined allocation more than thematic growth.
Who walked the talk
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• Sabana Industrial REIT: Internalisation marks governance reset
Sabana Industrial REIT completed the internalisation of its management function, replacing its external manager with an in–house structure overseen by the trustee. The trust has now been renamed Alpha Integrated REIT, reflecting a comprehensive governance overhaul aimed at aligning unitholders’ interests and reinforcing accountability. This marks a turning point after years of investor activism focused on conflicts of interest and cost efficiency, and is expected to enhance transparency, reduce agency risk and strengthen capital discipline.
Why it matters: Internalisation embeds accountability directly within the trust, setting a precedent for governance-led value creation in Singapore’s REIT sector.
• CapitaLand Ascott Trust: Tokyo exit reinforces portfolio discipline
CapitaLand Ascott Trust completed the divestment of its Tokyo property, Citadines Central Shinjuku Tokyo, for approximately $222.7 million as part of its targeted portfolio reconstitution. Management opted to divest the asset after evaluating renovation costs against projected operating yields. The sale, completed at around 40% premium to valuation, underscores disciplined capital allocation and tangible value unlocking from timely portfolio recycling. The proceeds from the divestment will be used to repay debt, fund asset enhancement initiatives and reinvest in higher–yielding properties.
Why it matters: Selective asset rotation reflects maturity. CapitaLand Ascott Trust’s disciplined recycling strengthens returns without compromising balance-sheet flexibility.
• Geo Energy Resources: Asset sale fortifies yields
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Geo Energy Resources unlocked accretive value through a combination of balance-sheet streamlining and capital deployment. The firm divested an exploratory Indonesian mine as part of a shift toward operational efficiency and stronger cash flow visibility. In tandem, it proposed acquiring 51% stakes in two Indonesian shipping companies for US$127.5 million ($166.4 million) to integrate its logistics vertically. Management described the deal as “value accretive”, estimating a captive–market opportunity of US$220 million to US$280 million per year.
Smartkarma insight provider Sameer Taneja wrote in December last year that Geo Energy offered “an opportunity to grow production/profitability by 150%/500% in two years” with a dividend yield above 30% possible by FY2027.
Why it matters: In extractive industries, investors increasingly price predictability over optionality. Geo Energy’s portfolio simplification is a case study in that repricing.
• CapitaLand India Trust: Recycling capital toward higher–yield growth
CapitaLand India Trust executed its first–ever asset divestment, selling its stake in two IT parks for approximately $161.7 million to repay debt and monetise non–core assets with limited strategic value. CEO Gauri Shankar Nagabhushanam says: “A significant proportion of the investments we have made between 2021 and 2025 will start to bear fruit from 2026 to 2028. We are committed to delivering stable distributions alongside a stronger pace of growth.”
Why it matters: CapitaLand India Trust’s portfolio evolution shows how REITs can unlock value by transitioning mature assets into structural growth themes without stretching their balance sheets.
From episodic wins to structural change
The Smartkarma Singapore Value-Up All-Cap Index’s 50% year-to-date gain underscores a broader cultural shift taking hold in Singapore’s market. Corporate Singapore is beginning to internalise that “value–up” is not a policy slogan but a governance discipline that markets now expect.
The Monetary Authority of Singapore’s upcoming Value Unlock package, expected in November, is designed to support this value–unlocking discipline. The initiative will introduce practical measures, including grants, toolkits, and engagement platforms, to help listed companies translate governance commitments into shareholder returns.
Additionally, the September debut of the Fullerton Singapore Value–Up Fund, the first retail strategy launched under MAS’s Equity Market Development Programme, marked an early step in linking reform objectives to investable products, signalling that reform narratives are gaining institutional shape.
Together, these developments suggest that Singapore’s value–up effort is gaining structure, moving from isolated corporate actions toward a more coherent market framework.
Looking ahead
Singapore’s market enters the final months of the year on a steadier footing but with tempered expectations. The last quarter will test whether corporate discipline can sustain investor confidence amid a shifting trade and domestic backdrop.
Yet, the direction of travel appears to be durable. With policy support deepening and more companies internalising governance-led capital discipline, Singapore’s market transformation appears structural, not cyclical. As investors recalibrate expectations around sustainable value creation, the rerating of “Singapore Inc” stands poised to shift from a nascent rally to a durable regime.
Smartkarma is a Singapore-based investment intelligence platform that connects global investors with independent research, data, and analytics. It is at the forefront of developing benchmarks and digital-IR solutions to support Singapore’s value-up reforms.
