RHB cautious on office and hospitality Reits

Singapore

RHB has downgraded the real estate investment trust (Reit) sector to "underweight", joining the likes of Maybank Kim Eng which has a similar rating, and other houses which recently reported pessimistic outlook on the traditionally resilient sector.

RHB is especially bearish on the office and hospitality sub-sectors. On Wednesday, it downgraded CapitaLand Commercial Trust, Keppel Reit and Suntec Reit to "sell" from "neutral" with lower target prices.

It also downgraded CDL Hospitality Trusts to "sell" and maintained a "sell" rating on OUE Hospitality Trust with a lower target p…