DBS Posts Record Quarterly Profit as Singapore REITs Navigate Mixed Performance

Banking Sector Strength

DBS delivered net profit of S$3.08 billion for the quarter ending June 30, marking a 9% increase from S$2.82 billion in the same period last year, according to the bank. The result came as wealth management fees surged enough to compensate for pressure from a declining interest rate environment. The performance underscores how Singapore's largest lender has successfully pivoted toward fee-based revenue streams as traditional net interest margins face compression.

The bank's shares had closed at S$73.55 the day before results were released, down 1.3% as markets anticipated the quarterly figures.

Keppel Advances Asset Monetization

Keppel announced it has reached S$2.1 billion in asset sales for the year, placing the company within its 2026 target range of S$2 billion to S$3 billion. The milestone was secured through a conditional agreement to sell its 40% stake in a waterfront mixed-use development in Ho Chi Minh City. That transaction will bring in approximately US$270 million in cash consideration, according to Keppel.

The disposal fits into the asset manager's broader strategy of recycling capital from mature developments into new opportunities across Asia. Keppel shares traded at S$11.21 before the announcement, down 0.4%.

REIT Sector Shows Divergence

CapitaLand Ascendas REIT reported a distribution per unit of S$0.07482 for the first half, a marginal 0.1% increase from S$0.07477 a year earlier. Distributable income climbed 8.6% to S$359.4 million from S$331.1 million, data from the REIT showed. The business park and industrial property specialist benefited from stable occupancy across its Singapore and Australian portfolios.

Units closed at S$2.57 ahead of the results, up 0.8%.

Centurion Accommodation REIT exceeded its initial public offering forecast by 9.6%, posting a distribution per unit of S$0.03499 for the half year. Net property income reached S$78.4 million, outpacing the forecast of S$75.2 million by 4.3%. The REIT, which focuses on workers' dormitories and student accommodation, has capitalized on tight supply in Singapore's purpose-built accommodation sector.

Strategic Acquisitions and Disposals

CapitaLand Ascott Trust announced it will acquire Coliwoo Midtown in Singapore for an agreed property value of S$134 million. The transaction includes a 10-year triple-net master lease with co-living operator Coliwoo, which will retain full operational control while realizing the asset's value. Coliwoo stated that lease payments will be funded from its operating cashflows. The deal is expected to close in the fourth quarter of this year.

The acquisition allows the trust to expand its co-living exposure in Singapore's central business district, where demand for flexible accommodation has remained resilient among young professionals and expatriates.

Companies Under Pressure

Manulife US REIT saw net property income for the first half fall 23.4% year-on-year to US$23.1 million from US$30.2 million, according to the manager. The REIT's distribution per unit remained suspended for the period, unchanged from its ongoing suspension under a master restructuring agreement. However, the manager reported that US$82.4 million in net proceeds from selling the Figueroa office tower in downtown Los Angeles has lifted total asset sales above the minimum target, marking progress toward exiting the restructuring agreement by end-2026.

Acrophyte Hospitality Trust recorded distributable income of US$1.8 million for the first half, down 35.8% from US$2.8 million a year earlier. The trust's managers announced they will suspend distributions to stapled security unitholders from the first half of 2026 through the second half of 2028, citing significant capital requirements and limited funding capacity. Distributions may resume earlier if circumstances improve.

Operations and Contract Wins

CSE Global secured S$199.1 million in new orders for the second quarter, according to the systems integrator. The company also confirmed that its strategic review, which began in March and could result in a full sale, remains ongoing. The review reflects broader consolidation pressures in the industrial automation and systems integration space, where mid-sized players are increasingly targeted by larger regional and global operators seeking to expand their footprint.

The flurry of corporate activity across Singapore's listed landscape reflects both the strength of the city-state's banking sector and the ongoing adjustments in its real estate investment trust market. While banks continue to benefit from diversified revenue streams, REITs are navigating a more complex environment of asset revaluations, distribution pressures, and strategic repositioning.