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