Smart Look At The Week Ahead: Blue-Chip REITs On Show

2020-07-19     thesmartinvestor
Smart Look At The Week Ahead: Blue-Chip REITs On Show

You could be forgiven for thinking that the Singapore market is dominated by Real Estate Investment Trusts. No less than six blue-chip property trusts are set to take the spotlight next week.

Mapletree Logistics Trust (SGX: M44U) will provide an update for the first quarter. In April, the warehouse landlord warned that the unprecedented spread of COVID-19 could negatively affect demand for space, occupancy, rental rates and collections, and ultimately, the distribution per unit.

Another REIT, Mapletree Industrial Trust (SGX: ME8U), could also provide a first-quarter update. Last month, the landlord raised S$410 million through a private placement to fund the purchase of its remaining 60% stake in 14 American data centres.

CapitaLand Mall Trust (SGX: C38U) said in an April trading update that the impact from the pandemic could deepen in the second quarter. The shopping-mall operator has already cut the first-quarter distribution per unit by 70.5% to 0.85 Singapore cents.

CMT’s merger partner, CapitaLand Commercial Trust (SGX: C61U), was also forced to cut its first-quarter distribution per unit, but only by 25%. The office landlord said it withheld the distribution as a matter of prudence.

Ascendas REIT (SGX: A17U) is set to announce interim results. In the first quarter, the business space landlord said occupancy improved to almost 92%. It added that none of its properties was closed as a result of COVID-19.

A first-quarter report is expected from Mapletree Commercial Trust (SGX: N3IU). In March, the owner of VivoCity withheld S$43 million to better position itself for the challenges ahead.

On the economic front, China could leave its benchmark interest rate unchanged at 3.85% for the third straight month. The People’s Bank of China has been adopting a wait-and-see approach as the economy appears to show signs of improving.

Consumer prices in Malaysia could show another fall in June, which would be the fourth straight month of decline. In May, they dropped by 2.9% with transport prices, housing and utilities and the cost of clothing all heading lower.

And finally, Singapore industrial production could have rebounded in June following an unexpected slump in May.

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Disclosure: David Kuo owns shares MINT, CMT, CCT, MCT and Ascendas REIT.

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