The further relaxation of Covid-19 measures announced by the government will bode well for office, retail and hospitality REITs, says DBS Group Research in a March 25 report.

Counters include Keppel REIT, Mapletree Commercial Trust (MCT) and Suntec REIT for office, Lendlease Commercial Global REIT (LREIT) and Frasers Centrepoint Trust (FCT) for retail, and Far East Hospitality Trust (FEHT) and CDL Hospitality Trusts (CDL HT) for the hospitality sector, write analysts Rachel Tan and Derek Tan.

From April 5 onwards, up to 75% of the workforce can be at the workplace at any one time, up from the current 50% limit. Split team arrangements are no longer mandatory.

Singapore will also shift from the default working-from-home to a more “flexible and hybrid way” of working, says Lawrence Wong, Minister for Education and co-chair of the Covid-19 multi ministry task force.

According to the analysts, this is “positive news” to the office sector and gives employers more room and autonomy to bring employees back to their respective offices.

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See: Singapore and US office S-REITs to benefit as more workers return to office: DBS

 

In addition, social and recreational gatherings will be allowed but limited to eight people.

Solemnisations, wedding receptions and live performances can now hold 100 to 250 guests from April 24 provided attendees go through pre-event tests. Attendeeds who have taken both doses of the vaccine at least two weeks before the event will not have to be tested.

Live performances can now hold up to 750 guests from 250 if pre-event testing is in place.

Business-to-business events approved by the Singapore Tourism Board will be allowed to have up to 750 attendees in zones of 50 attendees.

Seated spectator sports events are currently being piloted and approved by SportSG and will allow up to 750 attendees too.

The pilot for nightlife remains on hold.

As at 11.15am, units in Keppel REIT, MCT and Suntec REIT are trading at $1.23, $2.09 and $1.56 respectively, while units in LREIT and FCT are trading at 80.5 cents and $2.46. Units in FEHT and CDL HT are trading 62.5 cents and $1.24 respectively.