Despite softer retail outlook, most S-Reits with Singapore retail assets record double-digit positive rent reversions
[SINGAPORE] Seven Singapore-listed real estate investment trusts (S-Reits) with local retail assets have recorded improvements in revenue and net property income (NPI), supported by improved operating metrics, positive rental reversions and robust occupancy rates.
They are: CapitaLand Integrated Commercial Trust (CICT), Frasers Centrepoint Trust (FCT), Lendlease Global Commercial Reit (L-Reit), Mapletree Pan Asia Commercial Trust (MPACT), OUE Reit , Starhill Global Reit and Suntec Reit . Here is a look at their recent business updates and financials.
CICT reported a slight 0.8 per cent year-on-year (yoy) decline in both revenue and NPI for the first quarter of 2025, due to the absence of income from 21 Collyer Quay, which was divested in November 2024. Excluding the divested asset, revenue and NPI were up by 1.1 per cent and 1.4 per cent, respectively.
CICT's retail portfolio recorded a 17.5 per cent yoy growth in tenant sales, with shopper traffic rising by 23 per cent. The portfolio's rent reversion was 10.4 per cent, with higher rates in downtown malls compared with suburban ones.
The trust expects positive rent reversions signed in FY2023 and FY2024 leases to contribute to FY2025 revenue, along with the full-year distribution income from Ion Orchard, acquired in September 2024.
FCT reported increases in revenue and NPI of 7.1 per cent and 7.3 per cent, respectively, for the first half of 2025, driven by higher rental income from renewed and new leases. Its portfolio maintained a committed occupancy of 99.5 per cent. Shopper traffic and tenant sales were up by 1 per cent and 3.3 per cent, respectively, yoy.
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Overall rent reversion for the period was positive at 9 per cent. FCT's Hougang Mall property commenced asset-enhancement initiative (AEI) works in April 2025, which are expected to be completed by Q3 2026. The expected return on investment is around 7 per cent, on S$51 million in capital expenditure. At present, 64 per cent of the AEI spaces have been pre-committed.
L-Reit reported that its Singapore portfolio, comprising around 90 per cent of its total portfolio by valuation, achieved positive retail rent reversion of 10.4 per cent despite a softer retail landscape. Committed occupancy for Jem and 313@somerset remained high at 99.9 per cent and 98.9 per cent, respectively.
MPACT recorded lower revenue and NPI for FY2024/2025, down by 5.1 per cent and 6.1 per cent, respectively, yoy. However, revenue and NPI from MPACT's Singapore portfolio rose by 1 per cent and 1.1 per cent, respectively, driven by VivoCity.
Despite disruptions from ongoing AEI works, the mall recorded full-year tenant sales that crossed the S$1 billion mark for a third consecutive year. MPACT achieved 89.6 per cent committed occupancy as at Mar 31, and it recorded a 3.6 per cent rental uplift overall, with VivoCity alone seeing a robust 16.8 per cent rent reversion.
OUE Reit's retail segment contributes 16.8 per cent of its overall revenue. Its Mandarin Gallery asset maintained a 99.5 per cent committed occupancy as at Mar 31, and recorded 4.9 per cent positive rent reversion in Q1.
Starhill Global Reit reported full occupancy as at Mar 31 for its Singapore retail portfolio. Its overall portfolio has a weighted average lease term expiry of 7.2 years by net lettable area, with more than 64 per cent of leases expiring beyond FY2027/2028.
The Reit's Singapore retail properties include a 71.49 per cent stake in Wisma Atria and a 27.23 per cent stake in Ngee Ann City. The Reit renewed its master lease with Takashimaya manager Toshin Development Singapore – which commenced on Jun 8 – for an initial term of 12 years, with further renewal options. The new master lease includes built-in rent escalations and an annual profit-sharing arrangement, providing upside for the Reit.
Suntec Reit's Singapore retail portfolio recorded improved committed occupancy of 98.2 per cent as at Mar 31, compared to 95.8 per cent in the year-ago period. Rent reversion for its Singapore retail properties was 10.3 per cent, with a 91 per cent retention rate.
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.
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