Hospitality REITs are the worst performers in Q3

The subsectors' distribution per unit fell 10.8%.

Singapore's hospitality REITs fared the worst amongst S-REITs, recording a 10.8% YoY fall in distribution per unit (DPU) in Q3, OCBC Investment Research revealed.

According to a sector analysis, the drag largely came from Ascott Residence Trust's (ART) 28.1% DPU decline due to dilution from a rights issue exercise earlier this year. Besides ART, Far East Hospitality Trust and CDL Hospitality Trusts saw declines of 8.0% and 6.1% in DPU, respectively.

The star in the hospitality sector was OUE Hospitality Trust, with robust DPU growth of 10.6%.

Meanwhile, retail and industrial REITs delivered gains in DPU growth, whilst the office sub-sector was dragged down by OUE Commercial REIT and to a smaller extent Frasers Commercial Trust and Suntec REIT.

Amongst 24 registered S-REITs, 13 saw YoY DPU growth, nine saw declines, whilst two were flat. Overall DPU growth dipped marginally by 0.2% YoY.

Singapore REITs' overall net property income (NPI) grew 4.8% YoY whilst distribution per unit dipped 0.2% in Q3

Data centres led the S-REITs' NPI growth at 42.1%, backed only by gains in the only registered REIT in the subsector, Keppel DC REIT. It had an NPI of $32.2m.

Meanwhile, hospitality REITs registered a 5% YoY growth, mainly supported by a 15.9% gain by CDL Hospitality Trusts.

Industrial REITs also showed 4.8% YoY NPI growth, backed by Viva Industrial Trust's 18.3% gain and Mapletree Industrial Trust's 11.1% increase. Meanwhile, Frasers Logistics & Industrial Trust and Cache Logistics Trust's NPI fell 4.4% and 3.3%, respectively.