S-REITs - RHB Research 2025-01-10: A Bumpy Ramp Ahead; Keep OVERWEIGHT

• We remain cautiously optimistic that 2025 will be a year of recovery for S-REITs after 3 years of underperformance, albeit with bouts of volatility from Donald Trump’s tariff policies.
• S-REIT index is currently trading at only about 7% above 2020’s COVID-19 lows and 33% below recent peaks, indicating downside risks are mostly priced in.

Factors driving recovery

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• We also expect Singapore’s GDP growth to be at 3.0% for 2025, at the top end of official range. This Goldilocks scenario is positive for S-REITs and will drive DPU turnaround in FY25, augmented by an anticipated shift in fund flows towards REITs from other high yield instruments, i.e. T-bills and fixed deposits.
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Remain active in capital reallocation

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Vijay Natarajan RHB Securities Research | https://www.rhbgroup.com/ 2025-01-10 SGinvestors.io

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