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Seven Singapore-listed retail S-REITs reported mixed financials but benefited from lower borrowing costs and stronger consumer traffic, which supported positive rental reversions. The trusts are CapitaLand Integrated Commercial Trust (CICT), Frasers Centrepoint Trust (FCT), Lendlease Global Commercial REIT (LREIT), Mapletree Pan Asia Commercial Trust (MPACT), OUE REIT, Starhill Global REIT and Suntec REIT.
CICT’s revenue and NPI dipped marginally due to asset sales, but excluding divestments, both rose. DPU increased 3.5 per cent to 5.62 cents, while occupancy stayed resilient at 96.3 per cent. It raised S$600 million via a private placement to acquire the remaining CapitaSpring stake, a deal expected to be DPU-accretive.
FCT posted 99.9 per cent occupancy, with higher shopper traffic and tenant sales. Debt cost fell slightly, though leverage rose due to perpetual securities. AEI works at Hougang Mall secured 74 per cent leasing pre-commitment.
LREIT recorded revenue and NPI growth, with DPU up 1.8 per cent. Debt cost improved and capital structure strengthened with the divestment of Jem office.
MPACT faced revenue and NPI declines following divestments and weaker overseas income. However, VivoCity delivered strong rental uplift of 14.7 per cent.
OUE REIT achieved a 34.3 per cent rental reversion at Mandarin Gallery, significantly outpacing Orchard Road’s rent growth, supported by new retail partnerships.
Starhill Global REIT maintained stable performance, with full leasing at its Singapore assets despite weaker tenant sales at Wisma Atria.
Suntec REIT’s revenue and NPI rose on overseas compensation and domestic strength. Suntec City Mall posted an 18 per cent rental reversion, though shopper traffic softened. Overall, retail REITs remain supported by resilient demand, positive rent reversions, and easing funding costs despite macroeconomic headwinds.
Opinion:
REITs FTW!
Well, hoping it does slowly as I accumulate more. π
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