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Retail S-REITs on the rise for FY2022: DBS

Chloe Lim
Chloe Lim12/15/2021 5:32 PM GMT+08  • 3 min read
Retail S-REITs on the rise for FY2022: DBS
The analysts have identified CICT, FCT, LREIT and CLCT as their top picks
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DBS Group Research analysts Geraldine Wong and Derek Tan say that Singapore’s retail sector is at an inflection point, with more positives in 2022 as consumer confidence remains high and tourists return, with top picks Frasers Centrepoint Trust (FCT), CapitaLand Integrated Commercial Trust (CICT), Lendlease Global Comm REIT (LREIT) and CapitaLand China Trust (CLCT) for overseas retail maintained.

According to Wong and Tan, retail value (ex-F&B) has recovered to approximately 92% of normalised levels despite periodic “lockdowns” as local spending continued to outweigh the “lost tourist dollar”.

“We believe that the pivot to more online spending will not be a significant disruptor in Singapore, as we have seen landlords and tenants embark on an omni-channel strategy with brick-and-mortar stores complementing online offerings,” say the analysts. “With brighter economic prospects driving wage increases coupled with tourists returning into our shores, we see the retail sector on a stronger footing come 2022.”

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