- S-REITs Index fell 6.9% m-o-m in October, due to the hawkish stance of FOMC to hold interest rates higher for longer. 3Q23 results were mostly in line with our expectations, as all REITs were negatively impacted by higher interest rates.
- S-REITs' share prices are now trading at a forward dividend yield of ~6.9%, 1.3x standard deviation above the mean of 6.1% and a P/NAV of 0.8x, 2.6x standard deviation below the mean of 1.03x. We think this is an opportune time to reposition into S-REITs for the eventual interest rate pause and decline.
- - Read this at SGinvestors.io -
- - Read this at SGinvestors.io -
Sector round-up
- The FOMC held the federal funds rate unchanged at 5.25 -5.5% on 1 Nov 23 and stated that it would be appropriate to keep its restrictive stance for some time until inflation is clearly moving down sustainably to its 2% target. This higher for longer stance on interest rates impacted the sentiment of S-REITs as seen from its 6.9% m-o-m decline.
3Q23 S-REITs results under our coverage were in line with our expectations.
- Read more at SGinvestors.io.
Above is the excerpt from report by Phillip Securities Research.
Clients of Phillip Capital may be the first to access the full report in PDF @ https://www.stocksbnb.com/.
Darren Chan Phillip Securities Research | https://www.stocksbnb.com/ 2023-11-27
Read More Analysis On Singapore REITs (S-REITs):
Analyst Reports on Singapore REIT Sector
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S-REIT Share Price Performance
S-REIT Target Prices & Ratings
