- Rising expectations of a delayed and milder cut in interest rates in 2024 has prompted another round of de-rating in S-REITs share price in recent times. However, a deeper analysis of the overall capital metrics for S-REITs reveals a more positive picture.
Higher for longer is 'in the price'
Market expectations that FED will cut only twice in 2024.
- - Read this at SGinvestors.io -
- These change in rate cut expectations came on the back of sticky inflation print in the US, contributing to the volatility in S-REITs share price, which has dropped ~12% since the start of the year.
- - Read this at SGinvestors.io -
- S-REITs currently offer an average dividend yield of ~6.7%, which presents a compelling investment opportunity for income-focused investors given the current low valuations.
Rewards outweigh risks at current valuations.
- Read more at SGinvestors.io.
Above is the excerpt from report by DBS Group Research.
Clients of DBS may access the full report in PDF @ https://www.dbs.com/insightsdirect/.
Dale LAI DBS Group Research | Derek TAN DBS Research | Rachel TAN DBS Research | https://www.dbs.com/insightsdirect/ 2024-05-30
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
