Stable earnings seen for retail Reits despite F&B woes

Singapore

WHILE any business slowdown for food & beverage (F&B) players could potentially dampen rental reversions for Singapore's retail real estate investment trusts (Reits), it is unlikely to dent the earnings for these S-Reits.

With F&B firms facing an increase in operating costs from higher wages, coupled with headwinds such as a tight labour market and intense competition, this could have a knock-on effect on Singapore's retail Reits, which derive roughly 30-35 per cent of gross rental income from F&B tenants.