FCT, MCT, ESR REIT - CGS-CIMB Research 2020-04-24: Bracing For The Impact Of COVID-19 In 2Q

Singapore REITs - CGS-CIMB Research | SGinvestors.io FRASERS CENTREPOINT TRUST (SGX:J69U) MAPLETREE COMMERCIAL TRUST (SGX:N2IU) ESR-REIT (SGX:J91U)

FCT, MCT, ESR REIT - Bracing For The Impact Of COVID-19 In 2Q




FCT, MCT and ESR released quarterly updates/results



All REITs retained income in view of uncertainties



Minimal tenants asking for rental deferrals

  • To our surprise, the REITs have only seen a few tenants requesting for rental deferment so far. This could be due to the 2-3 months “rental assistance period”, when most of the tenants do not need to pay rent. We believe there is a risk of a higher number of tenants opting for rental deferment once this assistance period is over.
  • For now, the REITs are only seeing up to 15% of their tenants possibly requesting for rental deferrals. ESR REIT has an average of 5.5 months of deposit in hand, while Mapletree Commercial Trust and Frasers Centrepoint Trust have 2-3 months. According to ESR REIT, a minimal number of its tenants are asking for rental rebates.


Slower rental reversions lately



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EING Kar Mei CFA CGS-CIMB Research | LOCK Mun Yee CGS-CIMB Research | https://www.cgs-cimb.com 2020-04-24
SGX Stock Analyst Report ADD MAINTAIN ADD 2.490 SAME 2.490
HOLD MAINTAIN HOLD 1.94 UP 1.880
ADD MAINTAIN ADD 0.50 DOWN 0.630



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