Retail most resilient among Reits in Q3: DBS

Singapore

RETAIL real estate investment trusts (Reits) will probably perform best in the upcoming third-quarter results, amid an environment of slowing topline growth across the sub-sectors.

DBS Group Research vice-president Derek Tan and his team said this in a report on Wednesday.

The slowing topline growth will in turn translate into more modest distributions per unit (DPU) in the coming years, Mr Tan said. He forecasts that S-Reits will deliver a 3.2 per cent growth in DPU over FY15 to FY17.

Mr Tan also sees the retail Reit sub-sector as the most resilient. Among them, Frasers Centrepoint Trust (FCT) and Mapletree Commercial Trust (MCT) will likely perform best in Q3, given strong foot traffic and sustained tenant sales at their malls, and given their unique mall positioning in their respective localities. FCT owns mostly suburban malls, while MCT owns VivoCity, Singapore's largest ma…