This month, the new SingPost Centre retail mall starts opening up in phases post redevelopment, as it completes the omni-channel e-commerce experience by bringing together retailers, customers and e-commerce last-mile fulfillment.

The mall will offer greater convenience, choices and experiences to consumers by providing online e-merchants and offline brick-and-mortar shops all under one roof.

In terms of contribution to rental and property-related income, we estimate about S$17m p.a. (when fully opened) from the mall, up from ~S$8-9m annually (vs. SingPost’s total rental and property-related income of S$39m in FY16 before the mall was closed for redevelopment). However, the market’s focus is still likely to be on the group’s strategic review over the next few months.

Maintain HOLD with S$1.22 fair value estimate on the stock.

Source: OCBC Research - 14 Sept 2017