Singapore REITs are set for a gradual, cautious re-opening in what is left of the year, with travel rebounding only in phases from 2021, says DBS Group Research analyst Derek Tan in an Oct 19 note. 

As expected, domestic travel will recover faster compared to international travel, as borders here remain shut. The sector’s gearing is set to increase to about 44% assuming 15% to 20% decline in valuations, with the “worst case scenario” priced in at current levels, says Tan. 

In particular, Frasers Hospitality Trust (FHT) will see its upcoming full-year results be impacted by the travel standstill. Two properties – ibis Styles London Gloucester Road and The Westin KL continue to remain closed as at end-September. 

To continue reading,

Sign in to access this Premium article.

Subscription entitlements:

Less than $9 per month
3 Simultaneous logins across all devices
Unlimited access to latest and premium articles
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)

Related Stories

Stay updated with Singapore corporate news stories for FREE

Follow our Telegram | Facebook