Shares of office landlords surge on expected return of office workers

Meanwhile, analysts expect Singapore's fair tenancy guidelines to have neutral to minimal impact on business costs of retail Reits

Published Wed, Mar 31, 2021 · 05:50 AM

S-Reits

Singapore

SHARES of office landlords have been gaining since the government's announcement last week that a bigger proportion - up to 75 per cent - of staff can return to the workplace from April 5.

Units of Keppel Reit on Tuesday rose 0.8 per cent to hit a one-year high of S$1.24, the highest it has been in a year. United Industrial Corp, which owns assets such as Singapore Land Tower, Clifford Centre and SGX Centre, rose 1.1 per cent to a one-year high of S$2.67, while Suntec Reit added 1.3 per cent to S$1.58, and CapitaLand Integrated Commercial Trust gained 1.4 per cent to S$2.18.

Anecdotally, office Reit managers have said that about 30 to 40 per cent of office crowds have returned to the workplace. A 75-per-cent capacity will be a welcomed change as this is expected to revive businesses …