Some REITs have released their results that covered the periods of Covid-19 and the Circuit Breaker implementation. We now have some indication of Covid-19’s impact to real estate performance.
Office REITs
Both Keppel REIT (SGX:K71U) and CapitaCom Trust (SGX:C61U) registered an 8% decline in revenue (comparing 2Q2020 to 2Q2019) while Keppel Pacific Oak REIT (KORE) (SGX:CMOU) bucked the trend and gained 20% in revenue. KORE reported strong rental reversions in tech hubs of Seattle and Austin. I suspect that the tech companies were benefiting from the remote working arrangements and may have even expanded their operations during the period. Hence, KORE was able to rub off the positive effect in their properties catering to tech companies.
Office REITs
% Change in Revenue (2Q2020 vs 2Q2019)
KORE
+20%
Keppel REIT
-8%
CapitaCom Trust
-8%
In terms of DPU changes, CapitaCom Trust suffered the worst decline of 23% among the 3 office REITs. One of the key reasons was the lower contribution from Raffles City...
