Singapore REIT vs T-bill Yield Spread
Singapore REITs pay far more income than a T-bill or SSB right now. Here's exactly how much more — and why that extra yield isn't free money.
Average S-REIT yield
5.74%
Last 12 months' payouts, weighted by size · prices as of 31 Jul 2026–07 Aug 2026
vs 6-month T-bill
+415 bps
T-bill 1.59% · BS26115N
vs 10-year SGS
+346 bps
10-yr SGS 2.28% · as of 12 Aug 2026
Based on 21 of the 24 S-REITs we track (3 under review; a figure we compute, not an index).
What this yield doesn't tell you
- Yield isn't your total return. A REIT can pay 6% and still lose you money if its unit price drops — this number counts only the payouts, not the change in price.
- The payout can be cut. A bond coupon is fixed; a REIT's distribution per unit (DPU) is not — managers cut it when rental income or debt costs force the issue.
- Rising interest rates usually push REIT prices down. REITs borrow heavily and compete with bonds for income investors, so they tend to fall as rates rise.
- A very high yield can be a warning, not a bargain. The market may already be pricing in a coming payout cut or refinancing trouble — a "yield trap."
- The tax is different. SSB and SGS interest is tax-free for individuals; REIT payouts follow a separate regime that depends on the component (taxable, tax-exempt, or capital). See iras.gov.sg.
What's in this aggregate
21 of the 24 S-REITs we track (3 under review; a figure we compute, not an index), weighted by size. Each REIT's yield is simply its actual payouts over the last 12 months divided by its latest unit price — we work out every number ourselves from the REITs' own results, which is why we call it a figure we compute, not an index.
| Ticker | Name | Sector | Price as of |
|---|---|---|---|
| M44U | Mapletree Logistics Trust | Logistics | 07 Aug 2026 |
| AJBU | Keppel DC REIT | Data Centre | 07 Aug 2026 |
| C38U | CapitaLand Integrated Commercial Trust | Retail & Commercial | 07 Aug 2026 |
| J69U | Frasers Centrepoint Trust | Retail & Commercial | 07 Aug 2026 |
| BUOU | Frasers Logistics & Commercial Trust | Diversified | 07 Aug 2026 |
| HMN | CapitaLand Ascott Trust | Hospitality | 07 Aug 2026 |
| T82U | Suntec REIT | Diversified | 07 Aug 2026 |
| K71U | Keppel REIT | Office | 07 Aug 2026 |
| C2PU | ParkwayLife REIT | Healthcare | 07 Aug 2026 |
| AU8U | CapitaLand China Trust | Diversified | 07 Aug 2026 |
| ME8U | Mapletree Industrial Trust | Diversified | 07 Aug 2026 |
| N2IU | Mapletree Pan Asia Commercial Trust | Retail & Commercial | 07 Aug 2026 |
| 9A4U | ESR-REIT | Industrial | 07 Aug 2026 |
| AW9U | First REIT | Healthcare | 31 Jul 2026 |
| P40U | Starhill Global REIT | Retail & Commercial | 05 Aug 2026 |
| TS0U | OUE REIT | Diversified | 05 Aug 2026 |
| Q5T | Far East Hospitality Trust | Hospitality | 06 Aug 2026 |
| O5RU | AIMS APAC REIT | Industrial | 06 Aug 2026 |
| DHLU | Daiwa House Logistics Trust | Logistics | 06 Aug 2026 |
| CRPU | Sasseur REIT | Retail | 04 Aug 2026 |
| M1GU | Alpha Integrated REIT | Industrial | 06 Aug 2026 |
3 REITs we track are currently excluded from this figure — under review after a material corporate event, no longer paying distributions, or without enough recent distribution history to compute a trailing-12-month yield.
How we work this out → — the weighting, why it isn't an index, and how a big corporate event puts a REIT's yield "under review" until we re-check it.
Frequently asked questions
- How much more do Singapore REITs yield than a 6-month T-bill right now?
- Based on 21 of the 24 S-REITs we track (3 under review; a figure we compute, not an index), the cap-weighted trailing yield is 5.74%, versus the 1.59% cutoff at the latest 6-month T-bill auction (BS26115N, auctioned 30 Jul 2026) — a gap of about 415 basis points. This is a yield gap, not a safety comparison: the T-bill returns your principal at maturity, and S-REIT unit prices and distributions can fall.
- How does the S-REIT aggregate yield compare to the 10-year SGS bond?
- The aggregate trailing yield of 5.74%, based on 21 of the 24 S-REITs we track (3 under review; a figure we compute, not an index), is about 346 basis points above the 10-year SGS benchmark yield of 2.28% (as of 12 Aug 2026). SGS bonds are Singapore-government-backed and return face value at maturity; S-REITs carry no such guarantee.
- Does a higher REIT yield mean S-REITs are a better choice than T-bills or SGS bonds?
- Not necessarily. A higher yield can compensate for risks that T-bills and SGS bonds don't carry: REIT distributions per unit (DPU) are not guaranteed and can be cut, unit prices move with the property market and interest rates, and an unusually high yield can signal financial distress rather than value (a "yield trap"). This page reports a yield gap, not a recommendation to switch between instruments.
- How is the aggregate S-REIT yield computed?
- We sum each REIT's actual "regular" distributions paid over the trailing 12 months and divide by its latest disclosed unit price, then combine the set by market capitalisation. It is a figure we compute from each REIT's own published results, not an SGX index or a live market feed. Full method at /reits/methodology/.
- Are REIT distributions taxed the same way as SSB or SGS interest?
- No. SSB and SGS interest paid to individuals is tax-exempt in Singapore. S-REIT distributions run a different regime — the tax treatment depends on the component (taxable income, tax-exempt income, or capital return) and can include amounts already taxed at the REIT level. See iras.gov.sg for the current rules; don't assume REIT distributions carry the same blanket exemption as SSB or SGS interest.