“We anticipate a strong retail sales performance in 4Q to propel domestic festivity spending for the retail REITs as overseas travel was once again jeopardised by the onset of Omicron. The hospitality sector continued to see strong domestic demand across the December holidays even as Vaccinated Travel Lane (VTL) ticket sales were announced to be halted until the 20th of January 2022,” write the analysts.
Investors looking to invest in Singapore REITs (S-REITs) should remain focused on the re-opening theme, such as retail, office and hospitality S-REITs in FY2022. This is as it continues to see favour in the new year, say DBS Group Research analysts Geraldine Wong, Derek Tan, Rachel Tan and Dale Lai.
To date, the impact of the Omicron variant has proven to be milder than the Delta variant, observe the analysts in a Jan 5 report.
