Net Asset Value (NAV)
NAV is the book value of a REIT or fund per unit — understanding it helps you assess whether an investment is cheap or expensive relative to its underlying assets.
Net Asset Value (NAV) is the net worth of a REIT or fund calculated by subtracting total liabilities from total assets, then dividing by the number of units outstanding. NAV = (Total Assets − Total Liabilities) ÷ Units Outstanding. For S-REITs, this primarily reflects the appraised value of investment properties minus debt. When the market price is below NAV, the REIT trades at a discount; above NAV it trades at a premium.
(Total Assets − Liabilities) ÷ Units
Book value per unit
Mainly appraised property values
Price < NAV (potentially undervalued)
Price > NAV (market confidence signal)
What Is NAV?
Net Asset Value (NAV) represents what a REIT or fund is theoretically worth on a per-unit basis if all its assets were sold and all its liabilities repaid. It is the accounting book value of the investment.
For S-REITs, the largest asset is the investment property portfolio, which is independently appraised at least annually. Total assets also include cash, trade receivables, and other assets. Total liabilities primarily include bank borrowings, bond debt, trade payables, and security deposits received from tenants.
NAV is a balance sheet concept. It differs from market price (what the market will pay today) and from intrinsic value (what a discounted cash flow analysis says the REIT is worth). All three figures can differ substantially at any point in time.
How NAV Is Calculated for S-REITs
The starting point is the appraised value of all investment properties in the portfolio — conducted by independent valuers (e.g., CBRE, JLL, Colliers) at minimum once a year.
From the total appraised property value, add other assets (cash, receivables, intangibles) to get Total Assets. Then deduct Total Liabilities: bank loans, medium-term notes (MTNs), bonds, lease liabilities, payables, and deferred tax (for overseas assets). The residual is unitholders’ equity, or NAV in aggregate. Divide by the number of units outstanding to get NAV per unit.
S-REITs report NAV per unit in their financial statements. As at each results date, investors can compare the reported NAV per unit to the current market price to determine the premium or discount.
Premium vs Discount to NAV
The price-to-NAV ratio (P/NAV or P/B) is one of the most common REIT valuation metrics in Singapore.
Trading at a discount to NAV (P/NAV < 1.0x) means the market price is below book value. This could signal undervaluation — an opportunity if the NAV is realistic and fundamentals are sound. Or it could indicate justified skepticism about asset quality, DPU sustainability, or macro headwinds.
Trading at a premium to NAV (P/NAV > 1.0x) means the market prices the REIT above its book value, reflecting confidence in future income growth, management quality, or sponsor support. Many high-quality S-REITs have historically traded at premiums — CapitaLand Integrated Commercial Trust and Mapletree Logistics Trust traded at 1.1–1.3x NAV during the low-rate era.
During the 2022–2024 rate-rising period, many S-REITs compressed to 0.7–0.9x NAV as investors demanded higher yields. As rates moderate in 2025–2026, valuations have partially recovered.
NAV for Unit Trusts and ETFs
For unit trusts (mutual funds) and ETFs, NAV has a slightly different application. The NAV is calculated daily (for unit trusts) or intraday (for ETFs) based on the market value of the underlying portfolio of securities minus any liabilities and fees.
Unit trusts are priced and transacted at NAV — you buy and sell at the NAV price. There is no premium or discount concept because the fund house creates or redeems units at NAV.
ETFs trade on an exchange like stocks, so they can briefly trade at a premium or discount to their underlying NAV. For liquid Singapore-listed ETFs (SPDR STI ETF, Lion-Phillip S-REIT ETF), this deviation is typically less than 0.5% due to arbitrage by market makers. During periods of extreme market stress, premiums/discounts can temporarily widen.
For ETF investors, the relevant figure is the iNAV (indicative NAV) published throughout the trading day, which reflects real-time estimates of the underlying portfolio value.
Limitations of NAV as a Valuation Tool
NAV is useful but imperfect. Several limitations apply, particularly for S-REITs:
Property valuations lag the market. Independent appraisals happen once or twice a year. Market conditions can change significantly between valuation dates. A REIT’s reported NAV may overstate or understate true asset values at any given moment.
Valuation is subjective. Different valuers use different cap rates and assumptions. A 0.25% change in the capitalisation rate applied to a large portfolio can shift NAV per unit by 5–10%.
NAV ignores future income growth. A REIT with strong rental reversion prospects or development pipeline may deserve to trade above NAV, while one with declining assets should trade below it.
Overseas assets carry currency risk. NAV of REITs with non-SGD assets reflects the exchange rate at the balance sheet date. NAV in SGD terms fluctuates with currency movements.
Using NAV in Your Screener
Many Singapore investors use P/NAV as a first-pass valuation filter when screening S-REITs. A typical approach: screen for REITs trading below 0.9x NAV, then filter by yield (minimum 5.5%), then assess fundamentals (occupancy, WALE, gearing) before deciding.
Data sources for S-REIT NAV per unit: SGX company announcements (each results release includes the balance sheet), individual REIT investor relations pages, and aggregator sites. NAV per unit is also shown on some brokerages’ REIT screener tools.
Important: always use the most recent reported NAV, not stale figures. NAV changes each results quarter as properties are revalued, debt is repaid or drawn, and equity is issued.
NAV Trends and Property Revaluations
Tracking NAV per unit over time reveals whether a REIT is growing or eroding its book value. NAV per unit grows when: property values appreciate, distributable income exceeds distributions paid (retained equity), or debt is repaid.
NAV per unit falls when: properties are devalued (common during rate-rising periods or property market downturns), equity is issued at below-NAV prices (dilutive placements), or assets are disposed of below book value.
In Singapore, commercial and industrial property values were generally resilient through 2020–2022 but faced valuation pressure in 2023–2024 as capitalisation rates expanded under higher interest rate conditions. Industrial and logistics REITs held up better than office and retail.
Monitoring year-on-year NAV changes in the annual report provides insight into portfolio value trajectory and can signal whether management is creating or destroying book value alongside its income distribution strategy.
Frequently Asked Questions
What does NAV mean for a Singapore REIT?
Should I buy a REIT at a discount to NAV?
Where can I find a REIT's NAV per unit?
Is NAV the same as intrinsic value?
Do ETFs trade at NAV?
Find Undervalued S-REITs
Our REIT reviews cover NAV, P/NAV ratios, yield, and gearing — helping you identify quality REITs at fair or better prices.