Brokers' take
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Singapore property and real estate investment trusts | Overweight UOB Kay Hian, Dec 13
We see limited impact on Singapore's property sector from the liquidity curbs in China due to the rarity of deals over US$1 billion. Within our coverage, Global Logistic Properties (GLP) is the most sensitive to a depreciating renminbi as China accounts over 56 per cent of its NAV.
Among developers within our coverage, GLP (56 per cent) and CapitaLand (45 per cent) have the highest exposure to China by asset value. Within our Reit coverage, Ascott Residence Trust (15 per cent) has the highest Chinese exposure by asset value followed by Mapletree Logistics Trust (6 per cent). A 10 per cent renminbi depreciation against the Singapore dollar will translate to a 3.5 per cent earnings impact for CapitaLand, while Reits within coverage could see earnings impact of 0.1-0.9 per cent.
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