Industrial REITs lead Q3 NPI growth amongst S-REITs

ESR-REIT’s NPI doubled from its merger with Viva.

Industrial REITs saw the strongest net property income (NPI) growth at 5-101% YoY in Q3 2019, according to Maybank Kim Eng. This was mainly attributed to higher contributions from earlier acquisitions.

In particular, Ascendas REIT saw a 12.0% YoY jump in NPI after the completion of its two UK deals in the second half of 2018. ESR-REIT’s NPI even doubled from the addition of Viva Industrial Trust’s nine properties after merger, as well as its acquisition of 15 Greenwich Drive.

Industrial REITs were also noted to be the most active in deals as they pushed overseas diversification. Overseas assets under management (AUMs) for industrial REITs hit 24-69% of the total from from 9-67%.

“Overseas assets are mostly freehold and should continue to strengthen S-REITs’ overall AUM growth, with their relatively longer WALEs and leases embedded by annual rental escalations supporting DPU visibility,” according to Maybank Kim Eng analyst Chua Su Tye.

Industrial REITs are expected to see stabilising rents and easing supply. The JTC all-industrial rental index only edged up 0.1% in Q3, whilst supply is projected to slow to 1.7% pa for 2019-21 from 3.3% in 2014-18.

“Leasing activity was largely due to renewals and relocations as tenants continued to rightsize or consolidate, while holding back their expansion given uncertain macros, suggesting a slower recovery in rents,” Chua said.

Meanwhile, retail REITs are facing low tenant sales despite a 1-9% YoY growth in shopper traffic, due to weak retail sales. Only the malls in prime Orchard Road like Wisma Atria saw improvement in tenant sales mainly from a lower base.

Still, retail REITs posted better DPU growth during the September quarter, led by Capitaland Mall Trust at 4.8% YoY from higher contributions from Westgate and Funan. REIT-owned malls are expected to outperform the broader market in occupancies and rents.

On the other hand, hospitality REITs have been observed to lag in earnings. However, the city-states revenue per available room (RevPAR) have begun to show signs of recovery with CDL Hospitality Trusts (CDLHT) and Frasers Hospitality Trust (FHT) posting RevPAR growth of 4.9% YoY.

You're the reader we write for. You're also the person our partners want to reach.

If that sentence describes you — a founder, a C-suite, someone whose attention companies pay good money for — then you already understand why SBR works. We've spent twenty years earning the trust of readers exactly like you. Which is exactly what makes this an interesting place for your company to show up, too.

The ways it can show up are broader than most people assume — thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. The right fit depends on what you're trying to do, which is why we'd rather start with a conversation than send a rate card.

If your company has something this audience should know about, we'd like to hear what you're working on.

No rate cards until we understand the brief. It's a better use of everyone's time.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia

Top News

30 One-Sentence Stories From People Who Have Built Better Habits

None of these stories are mine. They were sent to me by readers of Atomic Habits. My hope is that these examples will illustrate how real people are putting the book into practice. They will show you what people are actually doing to build good habits and break bad ones. And hopefully, they will spark some ideas for how you can do the same.

news conversion

SBR 5 Lorem Ipsum News 2 [8 May]

Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged. It was popularised in the 1960s with the release of Letraset sheets containing Lorem Ipsum passages, and more recently with desktop publishing software like Aldus PageMaker including versions of Lorem Ipsum.

SBR 4 Lorem Ipsum [8 May Top Stories]