- S-REITs enter a “stagflationary” period in a position of strength; P/B valuations at -1 standard deviation suggest a meaningful portion of downside risk is priced in.
- Impact of a rise in utility costs lower than the assumed ~-1% to -2.7% cuts in our theoretical sensitivity studies on DPU given hedges in place.
- - Read this at SGinvestors.io -
- Stick to S-REITs with earnings clarity and certainty of growth.
Stagflation fears driving a near term correction.
- The ongoing Middle East conflict has re-introduced stagflation potential risk into the global macro backdrop, primarily through a supply-driven energy shock. Elevated oil prices— driven by concerns over continued disruptions to key transit routes such as the Strait of Hormuz which are feeding directly into higher transportation, utility and input costs across economies and businesses.
- - Read this at SGinvestors.io -
- Markets have now shifted towards pricing in FED hikes rather than cuts since the start of the year, which have driven rate-sensitive S-REITs down by ~8% year-to-date or -5% from a total returns perspective.
Current macro environment appears inherently challenging for S-REITs
- Read more at SGinvestors.io.
