Singapore REITs Monthly - Phillip Securities 2025-02-17: Modest Rate Cut Trajectory Pressure S-REITs

• Our top picks are Stoneweg European REIT (SGX:CWBU) and CapitaLand Ascott Trust (SGX:HMN). We expect S-REITs' DPU to grow ~1% in 2025, with ~50% of S-REITs benefitting from interest savings in 2025 and the majority in 2026. However, the modest rate-cut trajectory may limit these gains.
• - Read this at SGinvestors.io -
• - Read this at SGinvestors.io -
• We remain OVERWEIGHT on S-REITs, preferring those with a healthy balance sheet, strong sponsors, and improving operating metrics, particularly those with the potential to deliver sustainable DPU growth in a higher interest rate environment. We prefer the retail sub-sector as rental reversions remain strong. Catalysts for growth include asset recycling and accelerated interest rate cuts.

Sector Round-up

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Above is an excerpt from a report by Phillip Securities Research.
Clients of Phillip Capital may be the first to access the full PDF report @ https://www.stocksbnb.com/.

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