Singapore Industrial REITs - DBS Research 2023-10-25: Concerns On Australia & Europe Overdone

Singapore Industrial REITs - Concerns On Australia & Europe Overdone

Singapore Industrial REITs - DBS Group Research | SGinvestors.ioFrasers Logistics & Commercial Trust (SGX:BUOU) KEPPEL DC REIT (SGX:AJBU) ELITE COMMERCIAL REIT (SGX:MXNU)
  • We believe that a niche group of industrial S-REITs with large exposure to the developed markets of Australia, UK, and Europe have been unjustifiably sold off to below -1 standard deviation levels and could throw some positive surprises.

A deep dive into real global real estate values

Cap rate compression for industrial properties halted in 2Q22.

  • - Read this at -
  • Prior to March 2022, property cap rates for industrial properties globally were compressing steadily, where investors were attracted to its resilient cash flows seen during the COVID-19 pandemic.
  • - Read this at -

Strong demand-supply fundamentals have supported valuations despite rising cap rates.

  • During the initial phase of rising interest rates, transaction evidence, coupled with the continued rise in occupancy and rental rates, meant industrial and logistics properties maintained steady cap rates.
  • However, asset yield spreads (spread between property yields vs interest rates) began to narrow and turn negative in some markets, which led to the beginning of cap rate expansions for the industrial and logistics property segments from the beginning of 3Q22.
  • Having compressed the most in FY20-FY21, we saw cap rates for industrial properties in some markets expanding at a faster pace than other property types.

Geographically diversified industrial S-REITs have seen weak share prices due to “balance sheet stress”.

  •

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

Dale LAI DBS Group Research | Derek TAN DBS Research | 2023-10-12

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


You May Also Like

SGX Stock / REIT Search


Most Read

Trust Bank God Of Fortune Referral Code PGKPSWAE Trust Bank Referral Code 🎁