Singapore Stock Market News

REIT - 2Q12 results review

StockFanatic
Publish date: Tue, 07 Aug 2012, 10:41 AM
StockFanatic
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2Q12 DPUs met expectations though growth appears to be slowing. The sector has outperformed the STI by 7% over the past three months. Yield spreads, however, remain attractive relative to the risk-free rate while key ingredients for compression are unlikely to unwind for now.''

Maintain Overweight on S-REITs with catalysts still expected from low interest rates, S$ strength and a steady operational and financial outlook. We prefer office S-REITs for their valuations and a bottoming of the office cycle. Our top picks remain CCT, Suntec REIT and FCOT.''
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