Singapore Office Properties

S-REITs With Singapore Office Properties Record Higher Occupancies

SINGAPORE – Singapore-listed real estate invests trusts (S-REITs) that own office properties here saw an increase in both occupancy levels and rental reversions during the 3rd quarter, reported The Business Times on Sunday afternoon (27 November, SGT).

For instance, CapitaLand Integrated Commercial Trust’s (CICT) portfolio occupancy rose from 92.9 percent in Q2 2022 to 96 percent during the period under review. Its rental reversion also climbed by 7.9 percent during the first 9 months of the year, said Emilia Tan, a Research Analyst at the Singapore Exchange (SGX).

“CICT guided that the gap between actual and committed occupancies in four of its properties (Asia Square Tower 2, Six Battery Road, CapitaSpring, and Capital Tower) is expected to narrow by Q2 2023,” she noted.

As for Suntec REIT, thanks to higher office occupancy and office rent at Suntec City Office, One Raffles Quay and the Marina Bay Financial Centre (MBFC), the S-REIT’s net property income (NPI) and joint venture income respectively increased by 3.8 percent and 7.2 percent year-on-year in Q3 2022. Also, its committed office occupancy remained solid at 99.4 percent, surpassing the 94.8 percent occupancy of Singapore’s core central business district (CBD).

Moreover, Suntec REIT has seen 17 quarters of positive rental reversion for its Singapore office assets and a growth of 5.7 percent during the first 9 months of the year. The trust also expects the revenue contribution from its Singapore office properties to strengthen further due to tight office supply.

As for Keppel REIT, its distributable income for 9M 2022 increased by 3.4 percent on an annual basis following the purchase of Keppel Bay Tower. Its committed occupancy also rose to 96.8 percent, while average signing office rent for its local office assets continued to climb to S$11.47 psf per month.

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