Opportunity for S-Reits as student accommodation sector tops the class

PURPOSE-BUILT student accommodation (PBSA) is gaining traction as a resilient asset class among property players.

There are currently no pure-play PBSA property groups and real estate investment trusts (Reits) listed in Singapore. But the strength of this sub-sector in the latest earnings season for the period ended June suggests this may soon change.

For example, hospitality player Ascott Residence Trust (ART), a stapled group comprising Ascott Reit and Ascott Business Trust, posted a 45 per cent increase in revenue for the first half ended June to S$267.4 million, and a 44 per cent rise in gross profit to S$118.2 million.