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Hey there, fellow REIT investors!

Let’s be honest—some REITs just don’t get much love. Maybe they had a rough IPO. Maybe they’re not backed by a big-name sponsor. Or maybe they made one bad move and investors never quite forgave them. And for some, it can practically last for years… 

But lately… I’ve noticed a shift.

Three REITs that were previously overlooked, underperforming, or even written off by investors—are suddenly starting to show signs of life. Their unit prices are surging after being stuck at the bottom for a while. Their fundamentals are improving. And yes, more investors, including this uncle, are starting to ask: “Wait a minute… are these worth another look, or another chance?”

In today’s post, I’ll walk you through three such REITs that almost everyone has forsaken—until now. I’ll discuss the triggers for each, the risks that still remain, and whether I personally think any of them deserve a spot in my portfolio, particularly my Satellite REIT portfolio, where I take more calculated, higher-upside positions.

But 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 – And I’m actually getting a little excited about this.

OUE REIT – Interest Savings Help, But Is It Enough?

OUE REIT owns a diversified portfolio of commercial and hospitality assets, all located in Singapore. Its properties include three Grade A office buildings — OUE Bayfront, One Raffles Place, and OUE Downtown Office — along with two hotels – Hilton Singapore Orchard and Crowne Plaza Changi Airport – and the retail-focused Mandarin Gallery mall. Altogether, it offers exposure to both the corporate and tourism sectors, right in the heart of the CBD and Orchard Road. This is now a pure-play Singapore REIT, with a mix of commercial and hospitality assets in central locations.

The earlier struggles:

For years, OUE REIT struggled with market confidence. Its hospitality assets, while prime in location, were volatile — especially during COVID and its aftermath. Even as tourism recovered, RevPAR at Hilton Singapore Orchard came under pressure and declined 21% in 2024 and early 2025, due to new hotel supply and cautious consumer spending.

At the same time, investors remained wary of its relatively high gearing and past dilutive capital management actions. The REIT also had to manage legacy concerns such as declining asset values for Lippo Plaza Shanghai, China, of around 30% decline in 2024. All this weighed on its valuation and sentiment for a long time.

Why it’s gaining attention now:

But OUE REIT is finally catching investors’ attention — and I think there are two big reasons behind this pivot.

First, the REIT completed the divestment of Lippo Plaza Shanghai in December 2024. This was a long-time underperforming asset, and many investors had seen it as a drag on the portfolio. Its exit has allowed OUE REIT to refocus entirely on Singapore, which is increasingly seen as a strength rather than a limitation. In fact, Singapore REITs — especially those with prime CBD and retail assets — have outperformed in recent months as investor appetite shifts back toward stability and local yield plays.

So this move wasn’t just about cleaning up the portfolio — it symbolically marked OUE REIT’s transition into a pure Singapore play, and the market has welcomed it.

Second, the REIT has seen a sharp drop in interest expenses, which directly lifted its distribution. Cost of debt has been falling, and just in 1H 2025 alone, financing cost savings amounted to $9.4 million. This helped push DPU to 0.98 cents, a 5.4% increase year-on-year — and importantly, the first time DPU has risen after years of stagnation or decline.

If we adjust for the fact that 1H 2024’s payout included capital distributions, this increase becomes even more significant — signalling that this is not just a temporary blip, but a sign of fundamental improvement in income available for unitholders.

Looking ahead, the REIT is set to refinance its $311 million share of the OUE Allianz Bayfront loan in 3Q 2025 at a lower cost, which management says should further reduce interest burden in FY2026 and support future DPUs.

In short: the REIT is leaner, more focused, and now starting to benefit from smarter capital management — all while riding the wave of a broader rebound in Singapore commercial real estate. 

Risks I’m watching:

While the recent DPU growth and Singapore focus are positives, I’m keeping an eye on a few risks.

First, the Hilton Singapore Orchard remains a weak link, with RevPAR falling, new hotel supply in Orchard, and cautious tourist spending. While Crowne Plaza Changi Airport performed better with 4.8% growth in RevPAR, the overall hotel contribution was still down 11.7% in NPI.

But the one I’m most cautious about is this: after finally becoming a pure Singapore REIT, there are signs that management is exploring overseas investments again. That could dilute the appeal of the REIT as a stable, Singapore-focused play — and potentially reintroduce currency and execution risks that the Lippo Plaza divestment had just removed.

My quick take:

OUE REIT looks like a textbook turnaround story. The DPU chart says it all — after years of flat or declining distributions, 1H 2025 is the first real pivot, and the market has taken notice. It’s share price has surged more than 20% over the past 6 months. 

But I’m still watching it cautiously. While the office segment is resilient, the hotel segment remains shaky, and gearing and ICR remains a concern.

Lendlease Global Commercial REIT – Turning the Corner on Retail Gearing?

Lendlease Global Commercial REIT or LREIT is primarily a Singapore retail REIT, despite its global name. Around 70% of its portfolio value is in Singapore, with flagship assets 313@Somerset and the retail component of JEM. The rest comes from Sky Complex in Milan, which contributes both retail and office income. So while there is overseas exposure, this is fundamentally a Singapore-focused retail REIT.

The earlier struggles:

LREIT has been under pressure in recent years due to two major issues. First, its gearing level surged above 42% after recent acquisitions—including its stake in JEM and other AEI related investments. Second, it faced leasing issues at Sky Complex, including lease restructuring and upfront recognition of supplementary rent that distorted its rental income profile. These two factors hurt investor confidence and led to a period of underperformance, despite LREIT holding relatively prime retail assets in Singapore.

Why it’s gaining attention now:

What’s triggered renewed optimism is the recent divestment of the JEM office component. In August, LREIT announced the sale of its 12-storey office tower at JEM to Keppel for S$462 million, with proceeds used to reduce gearing from 42.6% to around 35% on a pro forma basis. This directly addresses one of the market’s biggest concerns. I know I was excited by the news.

At the same time, operations have started to stabilise. For the 2H FY2025, DPU rose 1.8% year-on-year, and net property income grew 2.7%, showing early signs of recovery. The Milan property has also stopped being a drag, with the lease issues largely behind them, and forward rental income more predictable.

In short, LREIT is gaining investor attention again because it is doing the right things—deleveraging, refocusing on Singapore retail, and slowly improving financial performance. This interest has resulted in tremendous share price gains of almost 25% over the past 6 months. 

Risks I’m watching:

Still, certain concerns are still lingering in my mind. Even after the debt paydown from the JEM office sale, interest coverage ratio or ICR remains very low at just 1.6x. This raises red flags. I think this suggests that either property yields are too low, perhaps dragged down by prime Orchard Road mall, or interest costs are too high for this small REIT, or both. Management has acknowledged this in a recent interview (available on YouTube) by Gerald Wong from Beansprout, which I scrutinised. The new CEO says they are working on it—which is promising—but this is a key number that will take time to resolve.

Another risk is the potential for new acquisitions. Some analysts believe that with debt capacity improving, LREIT might start buying again. Personally, I think they should hold off and fix the ICR first. Fortunately, the management has not signalled any intention to make acquisitions soon—which I see as a positive sign of restraint.

My quick take:

LREIT is showing signs of discipline, and the JEM office divestment is a real step forward. It’s not out of the woods yet, especially with that low ICR and still-recovering DPU, but momentum is shifting in the right direction. 

Viewers of ‘The Dividend Uncle’ channel will know that I already own LREIT, and that I personally like the quality of their underlying properties in Singapore. If the REIT can continue to reduce financing costs and stay selective in capital deployment, I may increase my holdings further. For now, I’m watching—and quietly cheering them on from the sidelines and enjoying the recent share price resurgence. 

Before we go on, if you’ve found this post helpful — and you don’t mind listening to this uncle share my honest views after doing all the legwork for my own investments — the best way to support the channel is to click that Like button and subscribe. It’s completely free, but every thumbs-up puts a smile on my face… like that extra scoop of Milo powder on a Milo dinosaur. 

United Hampshire US REIT – US Grocery Anchored REIT Turning the Corner?

United Hampshire US REIT—or UHREIT for short—is a Singapore-listed REIT that owns a portfolio of grocery-anchored retail centres and self-storage properties across the US East Coast. Its tenants include large essential-focused brands like Walmart, Lowe’s, BJ’s Wholesale, Aldi, and other daily-needs retailers. These aren’t luxury malls—they’re built around non-cyclical, need-based consumption.

The earlier struggles:

But let’s not forget where this REIT came from.

UHREIT listed on 12 March 2020, just as the COVID-19 pandemic was declared. Talk about unfortunate timing. Within days of its IPO, global markets collapsed—and US retail REITs were among the hardest hit. Even though UHREIT focused on essential retail, that nuance was lost in the panic. It was treated like every other retail REIT, and its share price plunged—never recovering to its IPO price of US$0.80.

Beyond COVID, UHREIT also faced a wall of investor skepticism. It was a brand-new REIT, with no track record in Singapore, and it came with 100% exposure to US retail—a sector long thought to be in structural decline due to e-commerce. There was also no big-name sponsor like Mapletree or CapitaLand behind it. So even though its assets were resilient, most investors just lumped it in with the riskier names.

Add to that its poor trading liquidity, limited analyst coverage, and USD-denominated nature, and it’s no surprise UHREIT fell into the “too obscure, too illiquid” bucket for many. And honestly, those perceptions are still lingering today.

Why it’s gaining attention now:

But recently, things have started to shift.

UHREIT’s latest results showed strong leasing momentum, with overall occupancy back above 95%. More importantly, the REIT completed its major debt refinancing, which removes a major overhang in a high-interest-rate environment. That’s a big sigh of relief for income investors who were worried about DPU compression.

Despite its size, UHREIT has shown disciplined asset management—offloading underperforming properties and recycling capital to shore up the balance sheet. The DPU has stabilised, and the current forward yield is an eye-catching above 9%, even after its share price running up more than 10% over the past 3 months.

What stands out to me is that this isn’t some speculative retail REIT—it’s anchored by essential service tenants, and many of its properties are in freehold suburban locations with low retail vacancy rates. In other words, the quality of the portfolio isn’t as risky as the headline yield might suggest.

Risks I’m watching:

Of course, UHREIT is still a small-cap REIT with low trading liquidity, which may not suit every investor. It’s also exposed to US macro volatility, and as investors, we are exposed to potential declines in the USD.

There’s also a broader risk that’s been on my mind—the potential impact of new US tariffs, especially if they affect grocery supply chains or consumer goods. While UHREIT’s tenants are largely in the essential retail space, at about 58.3%, cost pressures from tariffs could squeeze margins and eventually lead to softer rental negotiations or store closures.  Even Walmart, the biggest groceries chain in the US is citing higher costs going forward. This impact could be even more negative particularly for value-focused tenants such as dollar stores, value grocery chains (e.g. Save-A-Lot) with limited pricing power.

My quick take:

UHREIT has had a rough start, but I think it’s found its footing. And for investors seeking high, sustainable income with a longer-term turnaround angle, this could be a quiet outperformer but bearing in mind the risk factors I highlighted earlier. 

And I personally feel UHREIT has been affected by a common misconception: some investors lump UHREIT together with US office REITs, which often struggle with high capital expenditure (or capex) just to maintain their buildings. For those REITs, it’s hard to keep up the 90% distribution requirement for REITs without either cutting dividends or relying on debt to fund capex. But that’s not the case for UHREIT. For its grocery and necessity retail properties, tenants handle their own interior spaces, while UHREIT only maintains the common areas and roofs—keeping recurring capex low and predictable. Its self-storage properties are also structurally simple, with low wear-and-tear and minimal finishing. So overall, UHREIT doesn’t face the same cash flow strain from capex, which helps support a more sustainable DPU.

The Dividend Uncle’s Take

Every REIT has a story—and sometimes, that story starts rough.

OUE REIT has been battling poor perception for years. Lendlease REIT got weighed down by debt and struggled with its Milan asset. And UHREIT? It basically IPO-ed into a global market crash. Each of them, for one reason or another, landed in the “too hard” basket for many investors.

But what stood out this time is that each REIT is doing something to change the narrative.

• OUE REIT is managing its interest cost better and squeezing more from its office assets.
• Lendlease REIT has made a bold move by selling its JEM office stake to clean up the balance sheet.
• And UHREIT, after years of being misunderstood, is quietly putting up the numbers to match its sky-high yield.

Now, that doesn’t mean I’m rushing to buy any of them immediately. But it does mean… I’m no longer ignoring them.

And maybe that’s the point: in investing, second chances don’t come gift-wrapped. Sometimes, you’ve got to dig a little deeper, relook old names with fresh eyes, and ask—is this the moment things start turning around?

Let me know in the comments: are you seeing what I’m seeing? Or are you still staying far away?

And if this post gave you a new perspective, help support my YouTube channel by subscribing and giving it a like, and maybe we’ll do a follow-up 6 months from now to see how these REITs are doing.

Until next time, stay steady, stay invested… and may your dividends keep flowing.