Retail REITs are directly affected by Covid-19 as many of their tenants have shuttered their shops. In a results review, Tong Tan, CEO of the manager of CapitaLand Mall Trust (CMT), says, “The impact from Covid-19 is expected to deepen in 2Q2020 due to the circuit breaker period, during which approximately 25% of the portfolio’s tenants are operating.”
SINGAPORE (May 8): Retail sales were struggling even before “circuit breaker” measures were implemented on April 7. Singapore’s retail sales fell for the 14th straight month. March’s retail sales were down sharply by 13.3% y-o-y and 1.3% m-o-m. Excluding motor vehicle sales, retail sales declined 9.7% y-o-y.
As part of the safe distancing measures, practically entire malls are closed except for essentials such as supermarkets and pharmacies. From May 5, TCM shops can open. Whatever the case, most tenants have lost at least two months of sales.
