During this phase, over 90% of retail tenants in malls will resume operations.
Majority of trade sectors will also be allowed to reopen including those within the fashion, healthcare, fitness, and education industries. Dining-in, as well as social gatherings, will be allowed, with a maximum of up to five per group or table.
“The food & beverage, and beauty & health trade sectors will likely lead demand recovery as consumers are allowed to dine-in at F&B outlets, while adhering to crowd density measures,” says Tan.
Anticipating a positive response on retail REITs, Tan and the team have maintained their “buy” calls on retail REITs.
See also: OCBC's Lim raises her fair value for Boustead Singapore to $2.45
Frasers Centrepoint Trust (FCT), CapitaLand Mall Trust (CMT), and Lendlease Global Commercial REIT (LREIT) have been identified as the brokerage’s top picks, with target prices of $2.65, $2.15, and 85 cents, respectively.
Units in Frasers Centrepoint Trust closed 3 cents higher, or 1.2% up, at $2.47; units in CapitaLand Mall Trust closed 1 cent lower, or 0.5% down, at $2.14; units in Lendlease Global Commercial REIT closed 1.5 cents higher, or 2.1% up, at 74.5 cents on Wednesday.
