Mall tenants report healthy sales as shopper traffic remain robust

Upto 7.8% sales growth in 1H.

Shopper traffic continues to remain robust. Shopper traffic and tenant sales at the various retail REIT portfolios continued to increase in 1H13 (CMT’s malls reported tenants sales increasing by 3.3% y-o-y with most tenants reporting stronger tenant sales y-o-y).

DBS Vickers Securities believes the retail property sector is likely to see another year of fairly resilient performance.

Here's more from DBS Vickers:

MCT’s VivoCity reported a robust 5.6% y-o-y growth in retail sales for the quarter ended Jun’13 while FCT and MGCCT’s properties saw tenant traffic and retail sales increasing by 5.0% and 7.8%, respectively.

We expect the suburban malls to continue outperforming Orchard Road malls, underpinned by the opening of new outlets by retailers in the non-luxury segment and fast fashion outlets. These typically operate out of Orchard Road and have been expanding their presence in regional town centres like Jurong and even in Suntec City with H&M and Uniqlo as new tenants. These regional centres with enhanced offerings can potentially see stronger shopper traffic and sales, and could translate to higher rental income for landlords through gross turnover clauses tied to leases.

Renewal activities going forward are likely to remain fairly stable, with c12-25% of leases expiring (by revenues). We expect the malls to continue seeing strong retention levels.

If you've been wondering whether SBR could work for your company — yes, probably.

A lot of the companies we partner with started as readers. They'd been following our coverage for a while, saw their own customers and competitors in it, and eventually asked the obvious question: could we do something with you? The answer is usually yes. The shape of it depends on what you're trying to do.

The options are broader than most people assume — thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. Some partners use one channel; most use a mix. We figure out the right combination by starting with your brief, not with our rate card.

So if the question has been on your mind, here's the easy way to ask it.

We'll tell you honestly whether we can help, and how. It's a better use of everyone's time.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia