Singapore REITs: Limited Impact From Metro‘s Potential Departure

Research evidence excerpt

Singapore REITs: Limited Impact From Metro‘s Potential Departure

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20 Jul 2026 13:28:35 ET │ 10 pages

Singapore REITs

Limited Impact From Metro's Potential Departure

CITI'S TAKE

Despite the potential departure of Metro Holdings from malls owned by

Frasers Centrepoint Trust (FCT) and CapitaLand Integrated Commercial

Trust (CICT), we estimate limited impact to both S-REITs' GRI (~1%), but

more importantly, present rental upside opportunities shall the tenant's Brandon LeeAC

existing footprint be cut into smaller spaces and leased to multiple +65-6657-1118

tenants. We maintain Buy on both CICT and FCT, but prefer CICT on better brandon2.lee@citi.com

3-year forward DPU CAGR of ~4% vs. FCT's ~2%.

• METRO repositions - Metro Holdings (METRO; Unrated) announced (link)

that it intends to progressively transit from its traditional large-format

department store model towards a more flexible retail approach and is

evaluating a range of retail formats (including smaller-format stores, multi-

specialty concept stores, curated retail experiences and pop-up store

initiatives), hence it will not operate its existing large-format department

stores at Metro Paragon and Metro Causeway Point (CWP) upon the

conclusion of the existing lease arrangements for those locations. METRO

is engaged in discussions with the existing landlords and other landlords to

roll out the new retail multi-concept stores. In fact, according to Business

Times on 20-Jul-26 (link), CICT is advancing plans to optimize and

selectively reconfigure parts of Paragon (including areas currently occupied

by Metro), while Metro has expressed interest in remaining at Paragon

under new retail concept stores, with discussions ongoing.

• Small impact on CICT and FCT - Metro (Private) Limited (MPL) is FCT's 4th-