Will CapitaLand Mall Trust survive 2016’s weak retail climate?

Rental reversion already tapered to 3.7% last year.

Despite the tepid retail landscape, CapitaLand Mall Trust’s (CMT) performance will remain robust in 2016.

According to a report by OCBC, CMT’s share price has climbed 11.9% YTD, making it the top performing S-REIT. It has dominated the STI and FTSE ST REIT Index which have declined 5.4% and 3.3% YTD, respectively.

The report asserts that this is largely thanks to investors fleeing to safety as the blue-chip S-REITS with high quality assets have largely performed better in light of the uncertain macroeconomic environment and volatility in the financial markets.

Moreover, it was not surprising that CMT exhibited a pullback in its rental reversion to 3.7% in FY15, given the sorry state of Singapore’s retail industry. Last year saw meagre growth in retail sales. Excluding motor vehicles, retail sales would have dropped 3.6% YoY. Rentals of the private sector retail space also languished in 2015, as decline was seen through Q2 to Q4.

Looking ahead, headwinds facing the retail sector are expected to keep posing challenges for retail REITS like CMT. However, OCBC expects CMT remain resilient and continue delivering positive rental reversions in 2016.

The people you want to reach are already in this room.

Every quarter, SBR lands on the desks of the founders, CFOs, and directors running Asia's most consequential companies. Every day, they open our newsletter and read our website. It's a room that took twenty years to build — and it's the one most of our partners are trying to get into.

The good news is that the door is open. We work with companies on thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. The shape of the right partnership depends on what you're trying to do, which is why we'd rather start with a conversation than send a rate card.

If you have something this room should know about, tell us. We'll tell you honestly whether we can help, and how.

No rate cards until we understand the brief. 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