What Is a REIT? A Plain-English Guide for Singapore Investors (2026)

How a REIT works

A REIT pools investors' money to buy and operate income-producing real estate. The rent, after costs and financing, is paid out to unitholders as distributions. To keep their tax-transparent status, S-REITs must distribute at least 90% of their taxable income. Units trade on the SGX just like shares, so you get property income with stock-market liquidity.

Why S-REITs are popular in Singapore

Distributions are generally tax-exempt for Singapore-resident individual investors, many counters are SRS- and CPF-eligible, and you can start with a small amount. Singapore is the largest REIT market in Asia ex-Japan, with around 40 trusts across every major property type.

The metrics that matter

• Distribution yield — annual distribution ÷ unit price. Most S-REITs sit around 5–9%.
• P/NAV (price-to-book) — unit price ÷ net asset value per unit. Below 1.0x is a discount to the appraised property value.
• Gearing (aggregate leverage) — debt ÷ total assets, capped at 50% by MAS. Most trusts run 35–40%.
• Interest coverage (ICR) — how comfortably income covers interest; the regulatory floor is 1.5x.
• WALE — weighted average lease expiry; longer generally means more income visibility.

Our S-REIT screener shows yield, P/NAV and discount for every trust; each REIT page adds distribution history, and the deal brief adds gearing, ICR, WALE and occupancy straight from the filings.