Singapore REITs - DBS Research 2023-09-18: Shifting Gears

Singapore REITs - Shifting Gears

Singapore REITs - DBS Group Research | SGinvestors.ioFrasers Centrepoint Trust (SGX:J69U) LENDLEASE GLOBAL COMMERCIAL REIT (SGX:JYEU) CAPITALAND ASCENDAS REIT (SGX:A17U)
  • The waning hope of a Fed pause or cut of interest rates in 2023 has impacted S-REITs’ share prices through 2023, with the latest declines seen in Aug 23, but we believe that we are close to an inflection point.
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  • With the latest revision in our FY24F estimates, our forecasts have now priced in the impact of an extended period of high interest rates. If at all, we estimate a further +10bps risk (less than 2% drop in DPU) that is yet to be factored in, largely from overseas S-REITs.

Growth to return in 2024

  • Following the latest revision to our forecasts and after having priced in a higher average cost of debt for FY24F, S-REITs’ FY24F DPU will likely show growth and show a bottoming out in FY23, which is a positive.

FY24F EBITDA expected to grow 4% y-o-y; may offset some impact from higher-for-longer interest rates.

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  • Given the operational growth in FY24F, we expect a muted impact from higher-for-longer interest rates in FY24F, as seen in our DPU forecasts.

FY24F DPU signals return to growth.

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Above is the excerpt from report by DBS Group Research.
Clients of DBS may access the full report in PDF @

Rachel TAN DBS Group Research | Derek TAN DBS Research | Dale LAI DBS Research | 2023-09-18

Read More Analysis On Singapore REITs (S-REITs):
Analyst Reports on Singapore REIT Sector

Check Out Also The Summary Of:
S-REIT Share Price Performance
S-REIT Target Prices & Ratings


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