SPH REIT posts negative rental reversion of 8.4%
This is due to weak retail leasing sentiment.
SPH REIT recorded a negative rental reversion of 8.4%, according to a report posted by OCBC Investment Research.
This was credited to a weaker retail leasing sentiment. Values recorded by the company showed this trend amongst most of SPH REIT’s commercial properties.
Paragon and Clementi Mall showed negative rates at -8.3% and -8.7% respectively, whilst The Rail Mall was the only Singapore-based asset with a positive rate of 5.4%. Overall, a negative rental reversion of 8.2% was recorded.
The company’s Australia assets also echoed overall negative rental reversions of 10.8%, where Westfield Marion and Figtree Grove had rates of -10.5% and -12%, respectively.
Despite these rates, OCBC expects the rental rates to remain under pressure until tenant retention is prioritised.