, Singapore

Here's how SREITs deal with the impact of rising labour costs

Expect stable NPI margins.

DBS hosted S-REITs from the industrial, hospitality and retail sectors at the recent bi-annual DBSV Pulse of Asia Conference. DBS noted that against a backdrop of questions about higher interest rates and borrowing costs, labour crunch and slowing economic growth in Asia, the REITs remained generally upbeat about occupancies and rents, citing still-strong tenant performance and positive rental reversions as indicators of organic growth going forward.

DBS noted that most REITs are managing the impact of rising labour cost on their operating expenses well. This should translate into stable NPI margins.

Industrial REIT tenants are looking to automate operations rather than hire additional labour, which should help to improve productivity and reduce their dependence on labour. 

Join Singapore Business Review community
A NOTE FROM SINGAPORE BUSINESS REVIEW

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.