S-Reits need to reveal clear strategies amid tariff uncertainty

Business Times30-04-2025

[SINGAPORE] It is midway into the earnings season for Singapore-listed real estate investment trusts (S-Reits), with most of them having posted their Q1 results.
Closely watched among investors and analysts is the impact that US tariffs will have on these S-Reits. They are also looking out for the Reit managers' plans to counteract the effect of the tariffs imposed by US President Donald Trump.
The 'Liberation Day' tariffs announced on Apr 2 sparked a sell-off of S-Reits that week, although the sector has since rebounded. As at Wednesday's (Apr 30) close, the iEdge S-Reit index had climbed 8.7 per cent since Apr 9, when the tariffs took effect.
As the earnings season progresses, most S-Reits with exposure to affected markets have acknowledged the potential drag from the tariffs on their financial results.
However, more clarity is needed. Reit managers should go beyond general acknowledgments and provide concrete details about the specific sectors and assets exposed, and how they intend to respond to the potential fallout.
Given the broad scope and global reach of the proposed tariffs, their long-term economic impact could be significant, especially if Trump proceeds with implementation.
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For S-Reits, which are only now seeing a performance rebound amid easing interest rates, failing to address these risks in a meaningful way could undermine recent gains.
Scant detail from S-Reits
A total of 14 S-Reits had posted their Q1 results as of Apr 30. Many gave a brief overview on how they would be affected by the tariffs.
In general, they seemed to feel that an economic slowdown would lead to tenants pulling back or hesitating on lease commitments. For instance, the manager of Mapletree Pan Asia Commercial Trust noted in its recent Q4 results that tenants had become more cost-conscious, and decision-making among them had 'slowed down quite a lot'.
Others, such as CapitaLand Ascott Trust , offered more detail. Its Q1 business update disclosed that while the Reit might take a hit to the demand for lodging, its diverse mix of guests and longer-stay accommodation type would go some way to blunt the impact.
Several Reit managers also said they would adopt a wait-and-see approach, given that the tariffs were announced a month ago, and there have been constant changes to their scope.
The chief executive officer of Suntec Reit's manager, for example, said at a briefing on Suntec Reit's Q1 results that the Reit manager was watching for trends in retail tenant sales, with the tariffs having been implemented only in April.
However, overall, S-Reit managers have so far offered few details on how the tariffs would hit their portfolios, and how they intend to address the fallout.
These include specific details on the extent to which a Reits' assets may be affected, or how exactly the manager will mitigate the impact of the tariffs.
For instance, Keppel Reit's business update for Q1 focused on its performance, but offered little by way of how the economic situation could affect its outlook.
Far East Hospitality Trust's business update presentation for Q1 acknowledged that trade tensions could cloud economic outlook, but added that the outlook for tourism remained positive, with more visitors returning to Singapore post-pandemic, wooed by new attractions.
Details – such as the extent to which a recovery in visitor arrivals would offset the negative economic outlook, or how the trust intends to respond to tourists spending less – would give investors a better understanding of the trust's strategy during this period.
Granted, most S-Reits provide only business updates for their Q1 financial results. These are typically released as announcements on the Singapore Exchange, and do not give Reit managers much scope to share their outlook.
Furthermore, not all Reits hold briefings for analysts or the media. Such platforms would otherwise provide an avenue for market watchers to probe Reit managers further on their strategies.
Nevertheless, given how quickly the market moves in response to Trump's policy pronouncements – which the US president has changed several times now – it is imperative that S-Reits keep investors informed of their game plan should the worst happen.
What Reit managers can do
S-Reit managers can afford to provide more detail on their response to Trump's tariffs. Beyond acknowledging the tariffs' impact, they can explain the extent to which the tariffs will affect their bottom lines.
They can also give more details on the specific assets or geographies which will be hit by the tariffs, and lay out scenarios based on the severity of the tariffs.
Rather than say that they will adopt a 'wait-and-see approach', managers should go a step further to share active plans they may have to mitigate the impact of tariffs.
This could be anything ranging from incentives to encourage tenants to commit to leases quickly, or more extreme measures like divesting of assets or rejigging their portfolio mix by subsectors or geographies.
While their Q1 business updates may not be the best platform to share these plans, Reit managers can look for alternative platforms, such as upcoming annual general meetings or Singapore Exchange announcements, to do so.
Such moves would quell investor concerns during a turbulent economic period and instill confidence in the Reit management.
There is still some way to go until the end of the current earnings season. With S-Reit performances expected to see an uptick overall due to lower interest rates, it would do them good to keep the positive momentum going.

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UK aircraft carrier docks at Marina Bay Cruise Centre as part of eight month Indo-Pacific deployment

CNA

26 minutes ago

UK aircraft carrier docks at Marina Bay Cruise Centre as part of eight month Indo-Pacific deployment

SINGAPORE: As a military band played and schoolchildren waved British and Singapore flags, British aircraft carrier HMS Prince of Wales sailed into the history books on Monday (Jun 23) as the first warship to dock at the Marina Bay Cruise Centre. Singapore is the first formal port call in the region for the carrier which is on an eight-month Indo-Pacific deployment. It is the flagship of a strike group comprising five core ships, 24 jets and 17 helicopters. Some other vessels in the strike group are docked at naval bases around Singapore. While the warship is at Marina Bay Cruise Centre, it will host Singapore officials and industry leaders from 'defence and security, trade and business, and science and research sectors', said the British High Commission in a press release. Planned activities include a "defence and security industry day" held at the carrier's hangar, as well as a friendly e-sports tournament with military personnel from the UK, Singapore and the Singaporean e-sports community competing in a 'specially installed onboard gaming facility'. Britain's Secretary of State for Science, Innovation and Technology Peter Kyle, its Vice Chief of the Defence Staff General Sharon Nesmith, and Attorney General Lord Richard Hermer will also be in Singapore during the visit. British High Commissioner to Singapore Nik Mehta said the strike group's visit symbolises the UK's 'enduring commitment' to the Indo-Pacific region and its 'strong partnership' with Singapore. 'As we celebrate 60 years of diplomatic relations between the UK and Singapore, the timing of this visit could not be more fitting,' he said. 'Through our engagements with Singaporean and regional partners over the coming days, we will strengthen our defence cooperation, explore new avenues for trade and innovation, and reaffirm our shared vision for security and prosperity across the Indo-Pacific." The British High Commission said that 'growth' is at the heart of the group's visit to Singapore. 'Events hosted on board the carrier are aimed at connecting UK and Singaporean stakeholders in the areas of defence and security, science and technology, business and investment,' said the release. A "LONG-TERM STRATEGIC POSTURE" HMS Prince of Wales has a flight deck 70m wide and 280m long – enough space for three football pitches – and is one of the British Royal Navy's two Queen Elizabeth Class aircraft carriers. The carrier set off from Britain in April for Operation Highmast, a deployment which involves around 4,000 UK military personnel, including 2,500 from the Royal Navy, 592 from the Royal Air Force, and about 900 from the British Army. The deployment involves 30 countries through exercises, operations and visits across the Mediterranean, Middle East, and the Indo-Pacific. This includes exercises with the United States, India, Singapore, and Malaysia. "The UK is one in a small group of countries with the capability to lead a deployment of this scale, demonstrating its unwavering commitment to maintaining the international rules-based system. The deployment is a further demonstration of the UK's unwavering commitment to the Indo-Pacific," said the British High Commission. "The UK is clear that the security and prosperity of the Indo-Pacific is indivisible from that of the Euro-Atlantic – and our commitment to this region is a generational mission, a long-term strategic posture."

Singapore, Asia-Pacific markets pare losses after US strikes on Iran; oil prices give back some gains

Business Times

an hour ago

Business Times

Singapore, Asia-Pacific markets pare losses after US strikes on Iran; oil prices give back some gains

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Singapore, Asia-Pacific markets pare losses after US strikes on Iran; oil prices give back gains