New supply of retail space poses larger threat to Reits than online shopping, says Moody's
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Singapore
A HEIGHTENED supply of retail space will pose a bigger threat to Singapore's retail Reits than online shopping over the next 12 to 18 months, according to a sector report released by Moody's Investors Service on Tuesday.
Nonetheless, analysts are maintaining their credit profiles on Reits (real estate investment trusts) such as CapitaLand Mall Trust (CMT) which is rated "A2 stable", and Frasers Centrepoint Trust (FCT) which is rated "Baa1 stable". "The addition of new retail space reduces the likelihood of a major recovery in rents, while the growing popularity of online shopping reduces demand for physical retail space," Moody's said.
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