- Industrial REITs trading at -1 standard deviation across key valuation metrics; implied asset yields of 6.0%, higher than book cap rates.
- Prefer CapitaLand Ascendas REIT, Mapletree Logistics Trust, ESR REIT for potential “alpha opportunities”.
Ongoing economic and geopolitical uncertainties weighing on industrial S-REITs, but a re-entry opportunity now emerges.
- - Read this at SGinvestors.io -
- Among S-REITs, the retail sector has shown notable resilience in recent months, particularly suburban retail. Retail landlords continue to report record-high occupancy, largely driven by limited new supply. While a prolonged tariff conflict could eventually fuel inflation and economic uncertainty, we do not anticipate any immediate adverse effects on the sector.
Noticeable widening of spreads between industrial and retail S-REITs.
- - Read this at SGinvestors.io -
- In addition, their greater geographical diversification has made them susceptible to foreign exchange movements, particularly over the last few quarters as the S$ stayed strong.
Attractive value seen in industrial S-REITs given divergent performance.
- Read more at SGinvestors.io.
