Broker's take: FCT, Keppel DC Reit, MLT OCBC's top S-Reit picks
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OCBC Investment Research on Friday maintained its neutral call on the S-Reit (Singapore real estate investment trust) sector and recommended prudent bottom-up stock picking under a challenging operating environment.
Flagging hospitality as a key drag in the sector, OCBC pointed out, however, "the 4QCY15 earnings season ended without surprises . . . as all 22 S-REITS under our coverage reported results which met our expectations.
"Overall DPU (distribution per unit) growth came in at 1.9 per cent on a year-on-year basis," it said in a research note.
It said its preferred picks in the sector are Frasers Centrepoint Trust or FCT (buy at fair value S$2.25), Keppel DC Reit (buy at fair value S$1.24) and Mapletree Logistics Trust or MLT (buy at fair value S$1.04).
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