The US Fed has postponed the tapering of monetary stimulus and this
will have a positive near-term impact on S-REIT share prices. But we
note that interest rates remain on an upward bias, and an aggressive
investment stance on S-REITs may not be wise. We remain selective.
Developers, another interest-rate sensitive sector, could be a better bet.
We remain Overweight on developers,
preferring stocks with less residential
and more diversified exposures. UOL,
CapLand and GLP remain our key
picks. We remain Neutral on S-REITs
but highlight AREIT and SUN as our
top picks to benefit from this positive
event.
S-REITs that de-rated the most
in the last three months could also
rebound the most. These include
KREIT, CDLHT and FCOT.
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