According to RHB, 60% of the acquisition transactions were from Singapore. Natarajan says this is “not surprising” as “all Sora-based markets on which the majority of Singapore loans are pegged have fallen sharply”. Close to a fifth (19%) of acquisitions made by S-REITs in 1H2026 were from Japan, and nearly a tenth (9%) were from Australia.
Looking at 2H2026, macroeconomic conditions remain volatile and challenging when compared to the former half of the year, adds Natarajan in a note issued July 8. “However, the ongoing truce in the US-Iran war and rapid retreat in oil prices provides room for continued selective acquisitions focused on Singapore, Australia and selective European markets.”
Natarajan has raised his full-year forecast for S-REIT acquisitions to $10 billion to $12 billion, nearly double that of his $5 billion to $8 billion estimate previously.
See also: JD.com-backed group close to Singapore REIT IPO filing — Bloomberg
Similar divestment pace
Divestment momentum also picked up in 2Q2026 despite the Middle East war, with a total of 14 deals worth $5 billion announced in the year to date, higher than the $3.7 billion announced through the whole of 2025. This figure includes Elite UK REIT’s disposal of four assets in Swansea, the UK, announced July 3.
Divestments were largely concentrated in Singapore — across office, retail and hospitality — which accounted for some 87% of total transaction value. This was driven by institutional investors’ continued interest in Singapore’s real estate market on the back of a stable policy regime and currency coupled with the country’s strong economic outlook, according to Natarajan.
See also: AIMS APAC REIT to acquire freehold industrial property in Perth, Australia for A$42.7 mil
For 2H2026, Natarajan expects divestment momentum to continue, albeit at a slightly lower pace, with a total expected divestment value of $7 billion to $8 billion for the full year.
Rumoured S-REIT IPOs could be delayed
Three new S-REITS have listed on the Singapore Exchange since 2H2025, namely NTT DC REIT (NTTDCR), Centurion Accommodation REIT (CAREIT) and UI Boustead REIT (UIBREIT).
NTTDCR, which listed in July 2025, debuted with a portfolio of six data centres across the US, Vienna and Singapore.
CAREIT, which listed in September 2025, has a portfolio of five purpose-built worker accommodation (PBWA) assets in Singapore, eight purpose-built student accommodation (PBSA) assets in the UK and one PBSA asset in Australia.
UIBREIT, which listed in March this year, owns 21 leasehold industrial assets in Singapore and two freehold industrial properties in Japan.
Barring CAREIT, which is trading about 20% above its IPO listing price, both NTTDCR and UIBREIT have largely traded below their listing prices “despite good quality assets and strong sponsor pipelines”, says Natarajan. “This, in our view, shows that investors are wary and selective in deploying additional capital into the S-REITs sector amid ongoing macroeconomic uncertainty.”
NTTDCR is down some 5% from its IPO price of US$1 ($1.29), with a 52-week low of 90 US cents; while UIBREIT is down nearly 7% from its debut price of 88 cents, after touching a low of 76 cents in May.
The potential S-REIT IPO pipeline includes AirTrunk’s data centre REIT, Minor International’s hospitality trust, an industrial REIT backed by the JD.com group, and Singtel weighing options to list its data centre portfolio. “However, considering the mixed interest rate outlook and lukewarm investor demand for the sector, we believe timing for some of the upcoming listings could be postponed to 2027,” adds Natarajan.
Tables: RHB Bank Singapore
