Distribution Per Unit (DPU): The Key S-REIT Income Metric Explained
Distribution Per Unit (DPU) is the total cash distribution paid per REIT unit over a given period, typically every six months for Singapore REITs. It is the REIT equivalent of a dividend per share and is the primary income metric for unitholders.
This article is for informational purposes only and does not constitute financial advice. Always consult a licensed financial adviser before making investment decisions.
Table of Contents
What Is Distribution Per Unit (DPU)?
Distribution Per Unit (DPU) is the amount of income distributed to each unit of a Singapore REIT over a given period — typically six months for most S-REITs, though some (like Mapletree Logistics Trust) pay quarterly.
DPU is the REIT equivalent of dividends per share (DPS) for regular stocks. It is stated in Singapore cents per unit and is paid out from the REIT’s distributable income — primarily net property income (NPI) after deducting management fees, interest expense, and other operating costs.
DPU is the single most important income metric for REIT investors. It determines your actual cash income: if you hold 10,000 units of a REIT with a DPU of S$0.05, you receive S$500 per distribution period (before any DRP election).
How Is DPU Calculated?
DPU is derived from the REIT’s distributable income, which flows from the property portfolio’s net rental income:
- Gross Revenue (rental income, car park income, service charges)
- Less: Property Operating Expenses (maintenance, utilities, management fees)
- = Net Property Income (NPI)
- Less: Finance Costs (interest expense on borrowings)
- Less: REIT Manager’s Base and Performance Fees
- = Distributable Income
- ÷ Units Outstanding = DPU
Singapore REITs are legally required to distribute at least 90% of taxable income to qualify for tax transparency (no corporate tax at trust level). Most distribute 95–100% of distributable income.
DPU Yield: How to Calculate REIT Yield
To calculate a REIT’s distribution yield from DPU:
Annual Yield = (Annualised DPU ÷ Current Unit Price) × 100%
For a REIT paying semi-annual DPU of S$0.026 per period:
- Annualised DPU = S$0.026 × 2 = S$0.052
- If current price = S$1.00, yield = 5.2%
- If current price = S$0.90 (after selloff), yield = 5.78%
This inverse relationship between price and yield is key — when S-REIT prices fall (as in 2022–2023 rising rate cycle or the 2026 tariff-driven selloff), the yield on offer to new buyers increases. Use the S-REIT Yield Calculator to model different price and DPU scenarios.
What Affects DPU Growth or Decline?
DPU can grow or shrink based on several factors:
DPU grows when:
- Rental income increases (positive rental reversions, new acquisitions that are yield-accretive)
- New properties added to the portfolio generate more income than the funding cost
- Operating costs are reduced or managed efficiently
- Debt is refinanced at lower interest rates
DPU falls when:
- Interest rates rise sharply, increasing finance costs (as seen in 2022–2023 when SORA spiked above 3%)
- Properties experience high vacancy or negative rental reversions
- New equity is issued (rights issue, DRP), increasing units outstanding and diluting DPU
- One-off items (e.g. asset disposal, divestment) remove income-generating properties
As at Q1 2026, SORA has fallen to approximately 1.07–1.15% (down from the 3%+ peak), reducing the interest rate headwind on S-REIT DPUs and setting up a potential recovery cycle.