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Singapore REITs Poised for Full Recovery, Says CGS-CIMB (The Straits Times)

March 5, 2021 – CGS-CIMB believes that Singapore real estate investment trusts (Reits) are poised for a full recovery on expectations of a continuous improvement in footfall, which would support growth in tenant sales.

In a report on Thursday (March 4), its research team singled out three Reits – Frasers Centrepoint Trust (FCT), Lendlease Global Commercial Reit (LReit) and SPH Reit – placing an “add” call on all three with target prices of $3.01, 85.8 cents and $1.06 respectively.

Analysts said they are “encouraged” by the Reits’ performance as they noted an improvement in occupancy quarter on quarter despite much lower rental support.

Tenant sales also showed a rebound as pent-up demand drove recovery for both suburban malls and downtown malls in the fourth quarter of 2020, they noted.

“While downtown malls’ recovery was slower, we think it is still encouraging as tourists usually make up about 30 per cent of total spending at downtown malls,” the analysts said.

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