- Macro conditions continue to be challenging for S-REITs. Short-term rates are creeping up, credit spreads widening and FX crosswinds intensifying. But the possibility of skirting a recession and potential rate cuts, as signaled by an inverted yield curve, may be the silver linings.
- Asset valuation and financial metrics are the key items to monitor in the upcoming results announcements. We stay selective and maintain the view that sector performance should remain range-bound.
- - Read this at SGinvestors.io -
Scrutinizing of asset values
- - Read this at SGinvestors.io -
- Notable transactions include
- CapitaLand Ascendas REIT (SGX:A17U)’s purchase of The Shugart (see: CapitaLand Ascendas REIT - Fortifying Leadership In Business Space With Accretive Deals But Fairly Valued),
- ESR-LOGOS REIT (SGX:J91U)’s sale of five assets (see: ESR-LOGOS REIT - Execution On Divestments; One Step Closer),
- Lendlease REIT (SGX:JYEU)’s purchase of 10% stake in Parkway Parade, and
- Worldwide Hotels’ purchases in Singapore and Australia.
Funding costs creeping up, stabilization of margins can be a positive
- Read more at SGinvestors.io.
Above is the excerpt from report by Maybank Research.
Clients of Maybank Securities may be the first to access the full report in PDF @ https://maybanktrade.com.sg/.
Krishna Guha Maybank Research | https://www.maybank-ke.com.sg/ 2023-07-23
Read More Analysis On Singapore REITs (S-REITs):
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