The FTSE ST REIT Index (SGX: FSTAS351020) underperformed the Straits Times Index (SGX: STI) in the first half of 2026. What does this mean? Income investors anchored in real estate investment trust (REIT) holdings are having a bumpy ride year to date. The market panic is understandable, as geopolitical tensions in the Middle East disrupted shipping lanes, driving up not just logistics costs for businesses, but also the price of Brent crude oil, which surged past US$100 per barrel in March 2026. Local businesses were not spared from these inflationary pressures, with the Monetary Authority of Singapore (MAS) raising its core inflation forecast to 1.5% to 2.5%.

Higher Electricity Prices and Inflation – Who Bears the Burden?

The heightened oil prices aren’t just about the cost at the petrol pump. Singapore’s electricity tariffs climbed a staggering 17% from the previous quarter to 31.91 cents per kWh – an unprecedented high. One can drive less, but one can’t avoid using electricity and other utility services, especially for businesses....