SINGAPORE (July 24): Singapore’s malls are showing some resilience to the global hollowing out of physical retail by online shopping. The demographics of the smartphone generation are still against them, though.
Suburban middle-class shopping centers put up a strong show in CapitaLand Mall Trust’s quarterly earnings Tuesday. Their relative outperformance was an overarching theme in the results of Singapore’s biggest mall landlord, which offer a useful three-monthly check on the retail pulse and shifting consumption patterns in the city-state.
CapitaLand Mall’s tenants saw sales slid 0.9% from a year earlier in the first half, extending a 0.4% decline in the January-March quarter.Yet the real estate investment trust managed a respectable 4%-plus increase in rents on about 150,000 square feet of the roughly 800,000 square feet of retail space where new leases were signed or old ones renewed in the first six months. On one block of 40,000 square feet, the REIT negotiated a 5.6% jump.