The year 2021 will be a year to gain back footing as “tenants and landlords evaluate their business prospects,” say CGS-CIMB Research analysts Eing Kar Mei and Lock Mun Yee, as they maintain “overweight” on the sector in a March 3 report.

During the 4QFY2020, pent-up demand saw higher tenant sales among Singapore REITs (S-REITs). Occupancy during the quarter remained high at over 95%, though rental reversions were in negative territory.

“To maintain malls’ occupancy rates, landlords are now more flexible in leasing terms, but the lease structure remains largely unchanged, with short-term leases and gross turnover (GTO) rent structures making up just a small portion of total rental income. Rental deferment and pre-term requests remain a handful, and rental rebates are given on a targeted basis,” they write.

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