- The S-REITs Index rebounded 6.7% in November after falling 6.9% in October, on expectations of the end of the Fed interest rate hiking cycle.
- S-REITs' share prices are now trading at a forward dividend yield of ~6.4%, 0.4x standard deviation above the mean of 6.1% and a P/NAV of 0.86x, 2x 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 -
- We continue to favour REITs with a healthy balance sheet, strong sponsor, and improving operating metrics such as REITs in the hospitality and retail sub-sector. Catalysts are expected from a pick-up in the economy, asset recycling and interest rate cuts.
- - Read this at SGinvestors.io -
S-REITs sector round-up
- The FOMC held the federal funds rate unchanged at 5.25-5.5% for the third straight meeting on 13 Dec 2023, and are now signalling that it expects to make three 25bps rate cuts next year. This will be a tailwind for REITs, and we expect a sector recovery in 2024-2025.
Special Focus: Manulife US REIT restructuring
- 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/ 2023-12-15
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