Interestingly, there wasn’t much change in the valuations of the properties. This is because net property income continued to rise. Vivocity’s valuation, for instance, changed little over the year. Elsewhere, Festival Walk’s valuation rose 2.5% in Singapore dollars, to $5.09 billion despite being shut for a short period last year. Its capitalisation rate was unchanged at 4.15%. Festival Walk is owned by Mapletree North Asia Commercial Trust.
The REITs with the highest P/NAV (see chart 1), which include Keppel DC REIT, ParkwayLife REIT, Mapletree Industrial Trust, Mapletree Logistics Trust and Ascendas REIT, are likely to be the most defensive during Covid-19.
On the other hand, the REITs with the lowest P/NAV in chart 2 include names such as ARA US Hospitality Trust which has lost more than 50% this year. Investors are likely to steer clear of US hospitality trusts following their experience with Eagle Hospitality Trust.
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See also: SGX gives approval-in-principle to FHT to delist
