Broker's take: FCT, Keppel DC Reit, MLT OCBC's top S-Reit picks
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).
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Capital Markets & Currencies
Mixed trading in Asia as investors watch for further macro data; STI down 0.2%
Vietnam delays launch of new stock trading system
Hong Kong bourse regains favour on hopes of a market revival
Asia: Markets rise as strong US tech earnings offset poor data
Singapore shares open lower on Friday; STI down 0.1%
Stocks to watch: CLI, Great Eastern, MIT, Sheng Siong, iFast, OUE, Far East Orchard