SINGAPORE (May 8): Retail sales were struggling even before “circuit breaker” measures were implemented on April 7. Singapore’s retail sales fell for the 14th straight month. March’s retail sales were down sharply by 13.3% y-o-y and 1.3% m-o-m. Excluding motor vehicle sales, retail sales declined 9.7% y-o-y.

As part of the safe distancing measures, practically entire malls are closed except for essentials such as supermarkets and pharmacies. From May 5, TCM shops can open. Whatever the case, most tenants have lost at least two months of sales.

Retail REITs are directly affected by Covid-19 as many of their tenants have shuttered their shops. In a results review, Tong Tan, CEO of the manager of CapitaLand Mall Trust (CMT), says, “The impact from Covid-19 is expected to deepen in 2Q2020 due to the circuit breaker period, during which approximately 25% of the portfolio’s tenants are operating.”

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)

Stay updated with Singapore corporate news stories for FREE

Follow our Telegram | Facebook