Singapore REITs - Maybank Research 2023-02-10: At The Crossroads; Cautious Optimism

• Plateauing rates, an appreciating S$ and reopening of borders globally add to our positive view of S-REITs. That said, sticky inflation and a higher-for-longer thematic, a sluggish S$ bond market, potential recession and tight spreads make us pause.
• Sub-sectors we favor are hospitality, de-rated industrial landlords with new-economy assets and diversified commercial landlords.
• - Read this at SGinvestors.io -
• Frasers Centrepoint Trust (SGX:J69U),
• ESR-LOGOS REIT (SGX:J91U),
• Mapletree Industrial Trust (SGX:ME8U),
• - Read this at SGinvestors.io -
• CapitaLand Ascott Trust (SGX:HMN), and
• Far East Hospitality Trust (SGX:Q5T).

S-REITs – Macro Outlook

• Our house view foresees a mild global recession with global GDP growth projected to slow to 1.7% in 2023 from 2.9% in 2022. Inflation is likely to peak and start falling in 2023.
• We expect the Fed to raise interest rates to 5.0-5.25% by mid-2023 and hold at that level before cutting in 2024.
• Singapore’s GDP growth is likely to slow to 1.5% in 2023. We expect the MAS to tighten in Apr 2023 via re-centering. Likely peak of 3-month SIBOR ~4.8%.

S-REIT Sub-Sector Views & Stock Picks

• Read more at SGinvestors.io.

Krishna Guha Maybank Research | Li Jialin Maybank Research | https://www.maybank-ke.com.sg/ 2023-02-10 SGinvestors.io

---