In the years between the Global Financial Crisis and Covid-19, Singapore’s real estate investment trusts (Reits) consistently outperformed the market. However, recent post-pandemic challenges, such as rising interest rates and the shift to remote work, have led to a steep decline in their performance. Activist investors are now advocating for key reforms to improve transparency and rebalance the market.

Digital Core Reit, a major player in the sector, faced criticism from unitholders for a lack of communication when one of its largest tenants, Cyxtera Technologies, declared bankruptcy. This highlighted the need for more timely disclosures of critical financial risks. Additionally, governance concerns, such as the dominance of sponsors in controlling Reits, are being increasingly scrutinized by investors.

Swiss investor Quarz Capital’s successful 2023 campaign to remove Sabana Industrial Reit’s external manager marked a significant victory for minority shareholders. However, the changes have been slow to materialize, delayed by legal and regulatory hurdles, underscoring the need for stronger oversight.

Despite these challenges, Singapore Reits still show resilience compared to regional counterparts. However, to sustain investor confidence, Singapore regulators must implement reforms that promote fairness and transparency, giving more power to unitholders and creating a more balanced playing field.