In a Tuesday report, analyst Chua Su Tye cautions of “daunting” structural challenges faced by Singapore’s retail REITs, given the persistence sales leakages from outbound travel and growing e-commerce competition which could see online penetration of retail sales climb to 10-20% from 4.6% presently.
SINGAPORE (Jan 2): Maybank Kim Eng is initiating coverage on Singapore’s retail REIT sector with a “negative” rating on the belief that rising rates, peak new supply in 2018 and fair valuations should restrain near-term price upside.
This comes even as the sector is currently enjoying a cyclical recovery from a rebound in tourism and a more constructive economic landscape.
