Singapore Reits | Overweight
CIMB Research, Aug 15
Despite the rally, valuations are not over-stretched. S-Reits are trading at mean. In terms of yield spread, it is also one of the cheapest vs other key Reit markets. Industrials replace office as our most preferred sub-sector.
For 2Q16, industrials and retail were the most resilient. With the exception of Suntec Reit, the retail Reits continued to push through positive rental reversions.
Office starting to feel negative retail reversions. RevPAR declines...