Report Summary

• Singapore REITs (SREITs) are expected to outperform, driven by ongoing interest cost savings, robust operating metrics, and accretive acquisitions.
• Target prices (TPs) for SREITs have been raised by 0–15% due to declining Singapore 10-year bond yields and lower cost of equity assumptions.
• Sector rating remains Overweight, with CLAR, CICT, and LREIT as top picks due to their strong fundamentals, positive rental reversions, and attractive yields.
• Retail, office, and hospitality sub-sectors are benefiting from improved sales, tourist arrivals, and events, while industrial REITs see moderated rental growth due to new supply.
• Risks include geopolitical tensions, global trade uncertainties, and slower-than-expected interest rate cuts, which could affect rental growth and demand.
• Hospitality and overseas-centric REITs face currency headwinds but benefit from acquisition-led growth and interest savings.
• REITs with Singapore-focused portfolios see the largest TP increases; dividend yields remain attractive across the sector.
• Upcoming results season could offer buying opportunities, especially for REITs benefiting from tax incentives and improved sector metrics.