Brokers' take

Singapore Reits | Neutral OCBC Investment Research, May 23

LOOKING ahead, we are projecting stable distribution per unit growth, weighted by market capitalisation, of 1.9 per cent for the current financial year and 1.6 per cent for the next financial year.

Despite the S-Reit sector's share price correction in the year to date, valuations are still stretched, in our view. We believe this decline has been driven by concerns over a rising interest rate environment, as government bond yields have also seen a spike since the start of the year. This is despite the more positive operational outlook amid firmer underlying industry fundamentals.