SI Research: SPH REIT – Latest Results Indicate Protracted Headwinds

According to the Singapore Department of Statistics (DOS), the retail sales index, excluding automobiles, registered a 2.2 percent increase in May 2018 compared to a year ago. This signals a pickup in the retail sector, although market watchers are wary of waning momentum given the lower-than-expected 2Q18 GDP data released just two weeks ago. Meanwhile, Singapore retailers continue to struggle with rising manpower and rental costs, combined with the stiff competition from online retailers.