Risks for Singapore-listed real estate investment trusts (SREITs) will increase in 2016 because weak economic fundamentals will weigh on demand while new supply is added into most sectors, Fitch Ratings said in a report released on Monday (23 Nov). The agency expects SREITs with stronger balance sheets to become more acquisitive in 2016 as they try to boost earnings growth by capitalising on lower asset...
Singapore REITS
Two key retail REITs in Singapore have reported higher distributable income to unitholders, on the back of steady tenant sales and rental income. Frasers Centrepoint Trust said its fourth-quarter distributable income was up 0.9 per cent to S$25.7 million, on the back of an average rental reversion of 7.1 per cent for the quarter. Meanwhile, CapitaLand Mall Trust said its third-quarter distributable...
Rivervale Mall at Sengkang will soon have new owners, following CapitaLand Mall Trust's (CMT) decision to sell the property to a private equity fund managed by AEW Asia for S$190.5 million. CMT, which announced the sale on Thursday (Oct 15), said it will realise a gain of about S$72 million, after taking into account the divestment fee and other expenses. The property had been valued at S$116 million in...
Singapore-listed hotel landlord CDL Hospitality Trusts has made its first foray into the UK with the purchase of a 198-room hotel in Cambridge for £62.5 million (S$135.3 million). Announcing this in a statement on Wednesday (Sep 9), CDL Hospitality said the acquisition is its first in Europe and marks a diversification of its portfolio from the Asia-Pacific region. "The hospitality outlook for UK...
With slowing tourist arrivals and an impending US interest rate hike, analysts are maintaining a cautious view on retail real estate investment trusts (REITs) in Singapore. While some banks have cut their forecast for REITs' distribution per unit, they noted that retail REITs have been largely reporting positive rental reversions. Rental reversions for retail REITs have remained resilient despite a...
Commercial REIT CapitaLand Commercial Trust (CCT) reported a 2.1 per cent year-on-year increase in its distribution per unit (DPU) in the first half of this year, amid higher rents across its portfolio. CCT attained a DPU of 4.31 Singapore cents in H1 2015, according to data from CapitaLand Commercial Trust Management released on Friday (Jul 24). However, on a quarterly basis, the DPU rose just 0.5...
Plaza Singapura will undergo interior upgrading works in the third quarter of this year, mall owner CapitalLand Mall Trust (CMT) announced on Wednesday (Jul 22). The rejuvenation works, set to complete by Q4 2016, will cost about S$38 million and will include the upgrading of floor finishes, corridor lighting, toilets, lift lobbies and nursing rooms. More nursing rooms will also be added on Level 2 as...
CapitaLand Mall Trust (CMT), Singapore's largest shopping mall trust, will buy Bedok Mall from sponsor CapitaLand in a deal that values the mall at S$780 million. The 222,500 square foot Bedok Mall, which opened in December 2013, is part of an integrated retail-residential-transport development at Bedok Town Centre that includes the 583-unit condominium Bedok Residences developed by CapitaLand. The...
Canada's Manulife Financial Corp has shelved a plan to list a real estate investment trust on the Singapore Exchange (SGX), citing market volatility due to the situation in Greece. “In light of increased volatility in the equity capital market, the IPO of Manulife US Real Estate Investment Trust (Manulife US REIT) has been delayed,” a spokeswoman for Manulife Financial said on Monday (Jul 6) in...
The Monetary Authority of Singapore (MAS) has refined its proposals to strengthen the real estate investment trust (REIT) market, following feedback from industry participants. The changes, which will be phased in to facilitate smooth implementation by the industry, include capping borrowings to 45 percent of the REITs' total assets, MAS said on Thursday (Jul 2). Currently, the cap on borrowing is 35...