Singapore REIT Sub-Sector - RHB Invest 2024-06-26: Outlook & Picks

• Continue from Singapore REITs - A Long Pause & A Delayed Recovery.

Singapore REIT outlook & picks by sub-sector

Industrial REITs – OVERWEIGHT.

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• Industrial demand remains strong, mitigating supply concerns. Broadly, most of the industrial S-REITs continue to strengthen operational metrics, which are expected to maintain well into 2024. The logistics sector in Singapore and overseas markets (except China) remains the bright spot, with healthy rental rate growth and continued demand for high-specification logistics facilities.
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• Overall, we continue to see the industrial sector as a defensive play, offering earnings stability and stable asset value in the current high interest rate environment. Among the sub-sectors, we like the logistics, data centres and hi-tech sectors, which continue to benefit from the shift in market dynamics brought about by supply chain shifts and the Government’s longer term push to transform Singapore into a smart nation.
• Our picks are CapitaLand Ascendas REIT (SGX:A17U), AIMS APAC REIT (SGX:O5RU), and ESR-LOGOS REIT (SGX:J91U).

Office REITs – OVERWEIGHT.

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Singapore Research RHB Securities Research | https://www.rhbgroup.com/ 2024-06-26 SGinvestors.io

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