S-REITs: Will it soar in 2023?

In its latest business update and financial results, S-Reits continued to deliver a strong operational recovery in shopper traffic and tenant sales. In terms of price performance, the top three best performers year-to-date for the quarter ended were $CapLand IntCom T (C38U.SG)$+6.3%), $PARAGONREIT (SK6U.SG)$(+1.1%) and Singing Lion Real Estate Trust (+1.1%).
Note: data as of Dec 15, 2022

CapitaLand Integrated Commercial Trust $CapLand IntCom T (C38U.SG)$ reported a 21.3% year-over-year increase in tenant sales and a 21.9% year-over-year increase in shopper traffic in September 2022. The leisure and entertainment trade category grew 124.4% year-over-year.

Reit noted that leasing activity started to pick up in the third quarter of 2022, with demand mainly driven by food and beverage operators. For the full year of FY2022, SPH Reit $Suburban Propane (SPH.US)$'s total portfolio revenue grew 1.7% year-on-year to S$281.9 million, while net property income (NPI) grew 3.5% year-on-year to S$209.7 million. Retail tenant sales for its Singapore portfolio grew by 8.8% year-on-year and traffic grew by 15.9% year-on-year.

Frasers Centrepoint Trust $FRASERS CENTREPOINT TRUST (J69U.SG)$also announced its full-year financial results for fiscal 2022 in October, noting that total revenue for the year increased 4.6% year-over-year and NPI increased 4.9% year-over-year. Its portfolio shopper traffic recovered 12.4% year-over-year, while tenant sales increased 11.3% year-over-year, averaging 10% above Covid's prior levels.

Source: Recovery continues for S-Reits with Singapore retail assets