Brokers' take

Singapore Reits | Overweight

RHB Research, Mar 16

We upgrade the S-Reits sector to "Overweight" from "Underweight" as we see value emerging. We think that this sector is extremely attractive, as it has the widest yield spreads among its peers.

We like the retail subsector for its unbeatable resilience and expect rental reversions to persist this year. We also like the hospitality subsector as there is an increasing number of new conferences and events in 2016.

We recommend that investors avoid exposure to office and industrial Reits, as we continue to see unfavourable supply-demand dynamics within these two subsectors. However, we perceive business parks space as the crown jewel, as we expect demand to re…