REAL estate investment trusts with retail assets in Singapore (S-Reits) continued to post strong committed occupancy and positive rental reversions in their latest reporting period ended December.
The robust operating performance comes on the back of tourism recovery as well as proactive asset management by retail landlords. Market expectations are for committed occupancy in the retail segment to remain high, with continued rental growth in 2025.
Frasers Centrepoint Trust – one of the largest suburban retail mall owners in Singapore – continued to report high portfolio committed occupancy of above 99 per cent in its first-quarter business update. Shopper traffic and tenant sales also grew by 2.7 and 2.5 per cent, respectively, in Q1 compared to the year-ago period.
Meanwhile, CapitaLand Integrated Commercial Trust, which operates both suburban and downtown retail malls, saw its portfolio committed occupancy rise to 99.3 per cent as at December 2024, from 99 per cent three months earlier.
Its retail portfolio also had positive rental reversion of 8.8 per cent in FY2024, led by suburban malls. Downtown malls outperformed in terms of shopper traffic growth, driven by tourist arrivals and increased openings of new concepts by tenants.
Mapletree Pan Asia Commercial Trust said in its Q3 results that VivoCity maintained a strong performance – despite an ongoing asset-enhancement initiative – that shielded the Reit against overseas headwinds. The mall’s committed occupancy improved to 99.9 per cent as at end-December, with a 16.9 per cent positive rental reversion in its financial year to date.
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Similarly, Suntec Reit’s retail portfolio performance improved during its second half, with higher gross revenue due to increased rent at Suntec City Mall. Committed occupancy there rose to 98.4 per cent, from 95.6 per cent in FY2023, while rent reversion for the full year was a positive 23.2 per cent. Shopper traffic was also up 6.2 per cent year on year.
Elsewhere, Lendlease Global Commercial Reit reported that its retail portfolio, which includes Jem and 313@somerset, achieved a 10.7 per cent rental reversion in its H1 FY2025 results.
The trust’s committed occupancy stood at 99.9 per cent, although its tenant sales declined slightly due to an increase in outbound travel on the back of the strong Singapore dollar. The manager noted that the retail leasing market in Singapore continued to see healthy demand, with food and beverage operators as well as fashion and sports brands actively expanding their footprint.
Other Reits with malls along Orchard Road also delivered a positive showing.
Starhill Global Reit achieved full committed occupancy for its Singapore retail properties in Wisma Atria and Ngee Ann City. Revenue and net property income for both assets rose year on year in H1 ended December.
OUE Reit also reported higher committed occupancy of 98.2 per cent at Mandarin Gallery as at December 2024, with positive rental reversion of 19.8 per cent in FY2024. The manager noted that the improved operating metrics were underpinned by continued tourism recovery.
CBRE said in its 2025 Singapore Real Estate Market Outlook report that leasing sentiment in the Republic remains strong, as its reputation as a global tourism and business hub continues to draw significant interest from retailers.
The firm expects overall average retail prime rents to grow by 2 to 3 per cent this year – recovering to pre-pandemic levels, driven by tourism recovery, and below the historical average of new retail supply.
Meanwhile, DBS Group Research noted last week that S-Reits generally reported stronger-than-expected performance across all subsectors at the start of the current earnings season, with better-than-expected rent reversions. The retail subsector remains the research house’s pick. SGX RESEARCH
The writer is a research analyst at SGX. For more research and information on Singapore’s Reit sector, visit sgx.com/research-education/sectors for the S-Reits & Property Trusts Chartbook.
