Pockets of strength in S-Reits

AFTER a prolonged period of macroeconomic headwinds characterised by elevated interest rates, the outlook for Singapore real estate investment trusts (S-Reits) is shifting.

We anticipate a more constructive year ahead, when the convergence of easing financing costs, resilient fundamentals and reasonable valuations creates a compelling risk-reward profile for investors.

However, the recovery will not be uniform. A selective approach prioritising balance-sheet strength and domestic assets – a strategy we term the “Singapore shield” – will be essential for outperformance.