Scenting and the REIT Investor View

Key points

Investors buy income

REIT valuations rest on NOI and the cap rates investors apply.

Quality supports the story

Asset quality and occupier experience are part of how managers present a portfolio.

Consistency at scale

One standard across a portfolio is easier to explain and manage.

How scent fits a REIT’s asset story

Marina Bay Sands and the Singapore skyline

REIT managers report to unitholders on occupancy, rental reversions, NOI and asset enhancement. Each of these depends in part on how attractive the portfolio’s buildings are to occupiers.

A portfolio scenting programme gives managers a consistent, premium arrival experience across assets, delivered by one partner to one standard, with reporting that fits portfolio management.

The value arithmetic

Capital value is NOI divided by the market cap rate. Illustratively, at a 3.5% cap rate every S$100,000 of annual NOI corresponds to about S$2.86 million of value. Small improvements in retention or leasing therefore matter at portfolio scale. These figures are illustrative only.

What PrimeScents gives REIT managers

An amenity managed like an asset. Applied through scenting for REITs and landlords and portfolio scenting.

One signature scent across the portfolio

A specification standard for each building type

A single programme manager

Reporting for asset and property managers

Marina Bay cityscape with the Singapore Flyer

Bringing scent into portfolio management

A staged approach.

01

Pilot

Start with one flagship asset and review the result.

02

Standard

Set the signature scent and specification standard for the portfolio.

03

Roll-out

Extend asset by asset under one programme.

Frequently asked questions

1. Does scenting increase NOI?

We make no direct claim. Scent supports the experience that leasing and retention depend on, and those drive NOI.

2. Can you work across several REIT assets?

Yes, through portfolio scenting.

3. How is the programme reported?

Through service records and periodic reviews for each asset.

4. Can each asset have its own scent?

Assets can share one signature or have their own. Either way, no scent is shared with another client.

5. Is the 3.5% cap rate a forecast?

No. It is an illustrative input. Use your own valuation assumptions.

6. Where can I read more?

Start with a flagship asset

Request a site assessment and a pilot proposal for one asset.