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Hey fellow REIT investors! You know, every now and then, I like to take a step back and assess the REIT market from a fresh perspective. And what better way than to check which REITs are struggling the most? This is especially relevant in today’s stock market. Why? We are all painfully aware that REITs haven’t been doing well. But since the start of the year, US stocks as well, which could have a negative feedback loop to the Singapore stock market, including REITs. 

So, I pulled up a list of REITs trading closest to their 52-week lows. I expected to see the usual suspects, maybe some smaller, more speculative REITs, or at most, the embattled Mapletree Pan Asia Commercial Trust or MPACT, which has been facing all sorts of issues. But when I saw the actual names on the list… I nearly spilled my morning kopi siew dai.

These weren’t just any REITs. Some of them were blue-chip REITs, backed by some of the biggest sponsors in Singapore! I know, I know, nowadays, having a strong sponsor doesn’t guarantee good performance anymore. Just look at MPACT.

But what shocked me the most? One of these struggling REITs is even on my list of Core REITs that I introduced in my recent post! That’s right, something that I considered a solid long-term holding has now fallen into troubled territory, that is near to their 52-week lows. 

So today, we’re going to talk about 3 troubled REITs that have been hit hard. Singapore REITs in general have continued to underperform, but these three REITs in particular have fallen to hard times. We’ll uncover what’s ailing them, whether the market has overreacted to the bad news related to these REITs specifically, and most importantly, whether there’s still hope for them after all. 

Before we dive in, let me remind you that this post is for informational purposes only and not financial advice. Always do your own research and consult a licensed financial adviser before making any investment decisions. I own some of the REITs discussed, but what works for me might not work for you.

Alright, let’s get started!

Why Look at Underperforming REITs?

Now, you might be wondering, why focus on troubled REITs? Isn’t it better to look at strong performers instead? Well, here’s the thing: the overall REIT market hasn’t exactly been in great shape either.

Over the past year, the CSOP iEdge S-REIT Leaders Index which tracks Singapore’s largest REITs, has dropped about 7%. That’s the market as a whole. But within this broad decline, some REITs have fared better, while others have taken a bigger beating.

And here’s where things get interesting: sometimes, the worst-performing REITs may actually present opportunities. Investors tend to react strongly to bad news, sometimes pushing prices lower than they deserve to be. The key question is: are these REITs genuinely in trouble, or is the market overreacting?

That’s exactly what we’re exploring today. I’ve gone through the REITs trading closest to their 52-week lows. And I’ve also looked at their Price-to-Net Asset Value trends over the past few years, and for these REITs, valuations are hovering close to multi-year lows. That means investors have reacted strongly to recent concerns, leading to historically lower valuation.

So what’s happening? Has the market lost confidence for good, or is there hope for a turnaround? Let’s dive in.

CapitaLand India Trust – India’s Growth Story Under Pressure?

CapitaLand India Trust or CLINT has always been positioned as a growth-oriented REIT, benefiting from India’s rapid urbanization, strong demand for office space, and a push into the high-growth data center sector. But recently, its share price has come under pressure, dropping over 20% from recent highs of $1.17, now trading close to its 52-week low of around $0.935. Looking at the historical Price-to-Net Asset Value ratio trends which is at the lowest over the past 10 years, it is clear that there is quite some pessimism behind CLINT right now. 

[Source: http://www.REIT-tirement.com]

So, what’s changed? The biggest reason behind the decline is negative investor sentiment towards India’s economy. Indian equities have been hammered in recent months, wiping out US$900 billion in market value since the September 2024 peak. The Nifty 50 index has just suffered its longest losing streak in 29 years, as concerns mount over slowing economic growth, stretched stock market valuations, and foreign investors pulling money out. Investors are increasingly risk-averse when it comes to Indian assets, and CLINT, as a Singapore-listed REIT with full exposure to India, hasn’t been spared.

On top of that, currency depreciation has added another layer of pressure. The Indian Rupee has depreciated 57% against the Singapore Dollar since CLINT’s IPO, eroding the REIT’s distributions when converted back to SGD. CLINT’s gearing has also risen to 38.5%, and while its cost of debt remains manageable at 6.0%, based on Indian exposure standards, any further INR depreciation could dampen investor confidence further.

Then there’s CLINT’s data center expansion. Normally, investing in data centers is seen as a positive, as the demand for digital infrastructure is growing globally alongside expanding use cases of AI. CLINT has committed S$1.3 billion in capital expenditures to expand its footprint in this sector. However, with increasing macro risks, rising borrowing costs, and an uncertain economic outlook, this expansion has become another source of investor uncertainty, as the market worries about execution risks and funding requirements.

Is the Lower Share Price Justified?

CLINT is viewed as a growth-oriented REIT, but macroeconomic uncertainty is looming over its outlook. This uncertainty will likely affect how its share price performs going forward.

At face value, CLINT looks attractive: it offers a dividend yield of more than 7%, and its price-to-NAV ratio has fallen to 0.69, a substantial discount. I’ll be monitoring this one closely before making any moves.

Have we seen this story before with CapitaLand China Trust or CLCT before? Despite its properties performing relatively well operationally, especially the retail properties,, CLCT’s share price kept sliding over the past couple of years due to China’s weak macroeconomic sentiment. Today, CLCT offers an even higher dividend yield of 8.5% and trades at a price-to-NAV of just 0.59. Yet, even after a strong rebound in China’s stock market in 2025, CLCT’s share price still hasn’t recovered. But that’s another story for another day. 

Coming back to CLINT, the relevance of this uncle’s long-winded story about CLCT is to show that macro factors can sometimes overwhelm the fundamentals of a REIT, and CLINT could be in a similar position now. I’m positive about the long term fundamentals of its properties, including its push into the data centres. But the weak market sentiments and uncertainties may persist for a while and this might become the key driving factor of CLINT for some time.  

Frasers Centrepoint Trust – Will the RTS Link Hurt Its Malls?

Next, let’s talk about Frasers Centrepoint Trust or FCT, one of Singapore’s largest retail REITs, owning suburban malls like Causeway Point, Northpoint City, and Tampines 1. These malls are located right in the heart of local communities, and if you’ve been there on a weekend, you’ll know they’re packed with shoppers. That’s why suburban malls have always been regarded as that unique asset class, providing stable returns to investors regardless of the ups and downs of the economic cycle. Of course, this doesn’t include shopping malls’ “kryptonite”, that is, COVID lockdowns, when movement was restricted and hence mall operations were severely affected.

Now that COVID is far away from investors’ list of concerns, FCT should be doing well due to its strong suburban malls portfolio. However, FCT’s share price is now trading near its 52-week lows. And one big reason why? The impending completion of the Johor Bahru-Singapore RTS (or Rapid Transit System) Link. 

Set to open at the end of 2026, there’s recent confirmation that everything is proceeding according to plans and that the RTS Link is 50% completed. This has once again brought investors’ worries of potential major impact of the RTS Link on FCT’s shopper traffic, particularly at Causeway Point, to the forefront. From my observations, the entire investment community, including investors, analysts and FCT management are very concerned about issue, and there is no consensus at all, about what the actual impact will be. 

Why Are Investors Worried?

A key concern among investors is whether more Singaporeans might start heading to Johor Bahru or JB for shopping and dining instead of spending money at FCT’s suburban malls.

Let’s face it: prices in JB are way cheaper than in Singapore. Even now, we see huge crowds crossing the Causeway every weekend to stock up on groceries, eat at JB cafés, and enjoy entertainment at a fraction of the cost. Just search “JB trip” on YouTube, and there will be so many videos of YouTubers sharing their trip, recommending the best cafes or restaurants to visit, and of course, how cheap it is. Some investors fear that with the RTS Link improving accessibility of the JB option, the shift in spending patterns will affect local malls, especially near Woodlands where the station is located.

And it’s not just about shopping. Services like haircuts, massages, and even dental visits are significantly cheaper in JB. If Singaporeans increasingly take advantage of this, it could mean lower footfall and lower tenant sales at malls like Causeway Point, which might eventually put rental income under pressure.

But… Is This an Overreaction?

Here’s where I think the fears may be a little exaggerated. Let’s break it down. 

1. Convenience Still Matters – While JB shopping is cheaper, Singaporeans won’t always want to go through the hassle of traveling just for small errands or meals. Many people still prefer to shop near home, and if you stay further away from Woodlands, I’m sure people will continue to visit malls like Tiong Bahru Mall and Tampines 1, which don’t even rely on cross-border shoppers. They serve heartland communities with daily necessities.

2. Not All Spending Will Be Lost – Even if more Singaporeans visit JB for big shopping trips, it doesn’t mean they’ll completely stop visiting local malls. Malls in Singapore are not just about retail; they offer convenience, and many essential services like kids’ tuition is something that JB can’t fully replace.

3. Causeway Point is Still a Strategic Location – Causeway Point might see some impact, but it also serves as a key stop for many Malaysian workers and visitors who in Singapore. It’s unlikely that traffic will disappear overnight.

So, while the RTS Link will likely change shopper patterns, I belong to the camp of investors who believe the impact will be gradual rather than an immediate collapse in mall traffic.

Is FCT’s Lower Share Price Justified?

Now that we’ve explored the concerns, let’s talk about whether FCT’s current valuation makes sense.

Yes, FCT is near its 52-week low, but let’s be clear: this is not a crash scenario. Unlike some REITs that have plunged dramatically, FCT’s share price has been relatively stable over the past 52 weeks, with the one-year share decline at less than 6%. 

Even at today’s price, FCT remain much higher than its post-COVID lows of around $1.60. This is unlike CLINT discussed earlier, where the share price is now about 20% below its COVID lows. 

In addition, using the price to net asset value ratio as a yardstick, it is currently at a 1.5-year low, which is not too bad when compared to CLINT or the next REIT that I will be discussing later. But of course, remember that past prices and trends do not necessarily indicate future trends.

[Source: http://www.REIT-tirement.com]

Now, my personal view is that while FCT share price has gotten cheaper, it doesn’t necessarily mean deep value is emerging. Investors who were hoping for a bargain-bin deal may be disappointed.

For long-term investors like myself, I continue to see FCT remains a solid, stable suburban retail REIT with a resilient portfolio. FCT has always been a steady performer, not quite a turnaround play. So, while it’s cheaper now, it’s not screaming “must buy”, it’s just a good REIT facing some near-term investor jitters.

Before I reveal which REIT from my Core REITs list has unexpectedly landed on this troubled list, if you’ve been finding this analysis useful, hit that like button! It helps support the channel and brings you more deep-dive insights. And if you haven’t subscribed yet, now’s the perfect time, especially with so many market shifts happening. Alright, let’s get to it!

Mapletree Industrial Trust – Downgrades and Data Center Concerns Weighing It Down

Now, this is the biggest surprise on my list. Mapletree Industrial Trust or MIT is a blue-chip industrial REIT, one of the largest in Singapore, and, this is the shocking part: it’s even one of my Core REITs that I featured in my previous post!

Yet, MIT’s share price has taken a hit recently, and the main culprit? Downgrades by analysts, particularly JP Morgan. The share price has reached a 52-week low, and recently breached the $2 psychological level. In terms of the price to net asset value ratio, it has reached a historical low over the past 5 years. This represents quite a pessimistic investor sentiment over MIT. 

[Source: http://www.REIT-tirement.com]

So, what exactly are analysts worried about? The main concerns fall into two categories:

1. AI-driven demand concerns

Data centers have been one of the biggest investment themes in recent years, with AI-driven demand fueling massive growth. But recent developments in China’s AI space have sparked concerns. The rise of DeepSeek and other Chinese AI models suggests that AI data processing may be more efficient than previously thought, reducing the need for global data centers. 

Now, this isn’t a confirmed trend yet, but some analysts are dialing back their optimism on data center demand, fearing that previous expectations may have been too aggressive.

2. Rising Data Center Vacancies

On top of potential AI demand slowdown, MIT is also facing idiosyncratic risks, in other words, risks specific to its own properties. Analysts including JP Morgan expect rising vacancies in MIT’s data center portfolio, both in the U.S. and Singapore, leading to a projected 5-6% revenue decline and a 4% drop in DPU over the next two years.

MIT is facing several upcoming lease expiries across its data center portfolio, which could temporarily impact its revenue. These properties are spread across key U.S. markets, including Philadelphia, San Jose, Atlanta, and San Diego, and collectively, they contribute a meaningful portion to MIT’s data center earnings. I won’t go into details on each of the properties as these have been covered by other YouTubers and bloggers. 

But to summarise the key takeaways, over the next two years, around 5.6% of its total revenue is at risk, as multiple tenants have indicated they won’t be renewing their leases. For some of these properties, MIT is exploring re-leasing the space to new tenants, while in others, they are considering redevelopment, conversion into higher-spec data centers, or outright divestment. The challenge, however, is that some locations may require upgrading power capacity or further capital investment to attract new tenants.

While these vacancies could weigh on revenue in the short term, the overall impact remains manageable, given that they account for only a fraction of MIT’s portfolio. The key question is whether MIT can successfully backfill these spaces in a reasonable timeframe, and whether demand for data center capacity remains strong enough to support rental growth in the future.

Retail Investors Weren’t Aware of This?

I have to admit, I found it interesting that MIT’s upcoming lease expiries in the four properties were highlighted more prominently in analyst reports than in company announcements. For most of us retail investors, this information only came to light through analyst reports from JP Morgan and possibly UOB Kay Hian? While MIT has generally been transparent, more direct investor communications would be helpful to manage market concerns. 

Should We Be Worried?

Back to the issue on hand, that is MIT’s underperformance recently, on the surface, these sound like major headwinds. Major tenants of MIT’s data centre portfolio and revenue is at risk over the next two years due to lease expiries, and there are concerns that backfilling these vacancies may take longer than expected.

But let’s put this into perspective. Even if MIT loses the full 5.6% revenue with zero replacement tenants, that translates to roughly the similar drops in DPU. Given MIT’s dividend yield today, even with this decline in DPU, the yield remains attractive at more than 6%.

Yet, in just the past 2 months, MIT’s share price has dropped nearly 10% due to these concerns. Is this justified? Perhaps not, in my personal view. I am looking at this decline to be an opportunity for me to dollar-cost average into my Core REIT over time.

Why Dollar-Cost Average Instead of Buying Now?

While the current price looks attractive, sentiment is weak, and prices may drop further. Calling the bottom is nearly impossible, and investors may want to accumulate gradually instead of going all-in immediately.

Historically, MIT has proven to be a resilient, well-managed REIT with a clear long-term strategy. Its Singapore industrial properties are performing well and continue to provide stability in its portfolio.

In fact, this has always been MIT’s strategy: Singapore industrial assets offer stability, while data centers drive long-term growth. And this is exactly what I highlighted in my previous post on Core REITs.

So, while short-term risks remain, MIT’s fundamentals haven’t changed drastically, and for long-term investors, this could be a case of short-term market fear creating a long-term buying opportunity. 

The Dividend Uncle’s Take – Are These Troubled REITs Worth the Risk?

Now, after going through all three of these REITs, the big question is, are they worth buying at these lower prices?

They’re all trading close to their historical low Price-to-NAV ratios. This means that a lot of the negativity is already priced in, but macro concerns can still weigh on their performance for some time. We’ve seen this before with CapitaLand China Trust—just because a REIT looks undervalued doesn’t mean it will recover quickly.

So, what’s my take on these REITs?

If I had to rank them in terms of risk, CLINT is the riskiest because its fate is tied to India’s economy, which is out of its control. Next is MIT. Its Singapore Industrial exposures are likely resilient, and the negativity surrounding it has provide an opportunity to dollar cost average into the REIT. But there are short-term risks of vacancies and declining demand for data centers can’t be ignored. Finally, the least risk among the three is FCT. While it is facing competition from the RTS Link, it still benefits from strong foot traffic and established locations, so the concerns might be overblown.

For me, I’m not rushing in to buy any of these just yet. Bottom line? These REITs aren’t uninvestable, but they could be viewed as higher-risk plays that require patience and a clear plan. If you want to invest, dollar-cost averaging could be the way to go, rather than going all-in right now.

Now, I want to hear from you! Do you own any of these troubled REITs? Are you buying, holding, or avoiding them? Let me know in the comments! And if you found this analysis useful, tap that like button and subscribe—your support helps keep this uncle going!

Until next time, happy investing!