Earlier today, PM Lee announced that Singapore’s circuit breaker measures will be extended by 1 month until 1 June 2020. The measures were supposed to end on 4 May but due to the increasing number of unlinked cases in the community, these measures were extended and will also be tightened to reduce the number of people going out.

In anticipation of this, it appears that the majority of S-REITs retraced gains from last week. REITs with retail exposure will continue to be the most affected as seen from the declines of CMT, MCT and Suntec. With even lower sales volumes, it would be interesting to see how many more essential businesses will decide to voluntarily close to keep costs down.

S-REIT closing prices as at 21 Apr 2020 (Source: SGX)As the closures drag on, the follow-on impact to the other REIT sectors is also likely to be larger than initially expected. Both