Singapore Stock Market News

REITs - Less sanguine outlook

StockFanatic
Publish date: Thu, 05 Mar 2015, 03:23 PM
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YTD, the FSTREI continued to outperform the market, gaining 3.3%.However, with a dampened outlook and the S-REITs trading at the historical mean spread, the sector does not seem attractive at this juncture. Looking ahead, we expect REITs that are capable of offering growth via inorganic means to outperform their peers.

We keep the sector as an Underweight as we believe REITs will be ranged bound and underperform the developers in 2015. Given their strong balance sheets and availability of funding, we believe S-REITs will rely on inorganic means for growth. Our top picks are OUE-HT, SGREIT, FCT and MINT.
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