Singapore retail Reits, DPUs expected to be resilient over long-term: Morningstar

Singapore

WHILE the near-term distributions of retail real estate investment trusts (Reits) in Singapore might be affected due to the Covid-19 outbreak, these distributions should remain intact over the long-term period, according to a report by Morningstar Equity Research.

"In the near term, uncertainties remain as the duration of the coronavirus outbreak is unknown. However, in the long term, we expect distribution per unit (DPU) growth to be underpinned by population growth, a growing middle-income class, improving consumer sentiment, growth in the tourism industry and favourable supply-demand dynamics," wrote Morningstar equity analyst, Ken Foong.