Given the strong fundamentals, we are of the view that the S-REIT market is well positioned against potential interest rate hikes. Though we maintain a Neutral view on the sector, we believe REIT such as FCT is more resilient than others and offer stable yields amid a rising interest rate environment.
Amid a rising interest rate environment, we examined the resilience of the S-REITs under our coverage through analysing their respective;
1) gearing,
2) debt profile,
3) sensitivity of DPS to rising interest rates, and
4) current yield spreads.
Our top pick remains FCT (TP: S$2.05) for its defensiveness and strong fundamentals. Our other favourites include AREIT and CDL-HT.
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Revier Thomas
Post removed.Why?
2014-04-08 15:48