S-Reit picks to ride on ‘structural growth trends’ in H2
Jude Chan
HEADING into the second half of 2022, investors should focus on real estate investment trusts (Reits) that can deliver sustainable growth in the near to mid term.
“Risk of interest rates impacting distributions is well flagged out, but given the way we see base rates increasing, we believe that the actual impact could be a tad more than expected,” said DBS analyst Derek Tan.
Against this tough backdrop, it is important that investors focus on Singapore Reits (S-Reits) with the potential of delivering growth in their distribution per unit and net asset value. On top of that, Tan said investors should keep an eye out for S-Reits with low refinancing risks.
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