Brokers' take
Singapore Reits | Neutral OCBC Investment Research, August 22
All the 24 S-Reits under our coverage reported Q2 FY17 results which came in within our expectations. On average, DPU (distribution per unit) growth was flat on a year-on-year basis, which was a moderation from the 2.4 per cent increase registered in Q1 FY17 but similar to the flattish performance for 2016. We believe further compression in S-Reit yields remains a possibility in the near-term, but recommend investors to buy on dips as valuations remain stretched. Since we added CapitaLand Mall Trust (CMT) (Buy; FV (fair value): S$2.20) into our top picks list on June 5 this year on the premise that it was a potential laggard play, its share price has jumped 8.4 per cent. Given this outperformance, we replace CMT with OUE Hospitality Trust (Buy; FV: S$0.82). Our other top picks remain the same: Frasers Centrepoint Trust (Buy; FV: S$2.28), Keppel DC Reit (Buy; FV: S$1.39) and Frasers Logistics & Industrial Trust (Buy; FV: S$1.22).
Best World International | Buy Target price: S$1.88 August 22 close: S$1.185 Maybank Kim Eng Research, August 21
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
Wall Street Journal moves Asia headquarters from Hong Kong to Singapore
Macquarie sees biggest profit dip in 15 years on commodities downturn
HSBC appoints ex-Citi banker as new Singapore head of global banking
H2G Green chief to stand trial on Aug 5 amid MOM probe
Dasin Retail Trust’s trustee-manager chairman, directors deny allegations of misconduct
Microsoft adds security chiefs to product groups in wake of hacking woes