AREIT observed that customers are downsizing operations amidst uncertain market conditions.
This chart from UOB Kay Hian (UOBKH) shows that the occupancy rate of the Singapore portfolio of Ascendas Real Estate Investment Trust (AREIT) dipped 3 ppt YoY to 87.1% in September.
“Management observed that customers are downsizing operations, moving into their own facilities, or deferring their renewal plans, so as maintain flexibility amidst uncertain market conditions,” UOBKH Noted.
With this, AREIT in return rolled out more attractive lease packages and incentivising agents through partnership rewards in order to clinch higher retention, UOBKH said.
Meanwhile, the firm’s Australia portfolio dipped 0.2 ppt YoY to 98.5% whilst their UK portfolio is 100% occupied. Overall portfolio occupancy remained stable at 90.6%.
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