DBS Bank Ltd, Report Date: 31 Mar 2026
Excerpt from DBS Bank Ltd report.
Report Summary
- Sector Focus: Singapore REITs (S-REITs)
- Key Idea: S-REITs are entering a “stag-flationary” period from a position of strength, with much of downside risk already priced in. Valuations are near cyclical lows at 0.9x P/B, with FY26F yield of 6.3% and a spread of 4.1% over SG 10-year government bond yield. Sector is expected to deliver c.3% annual growth in distributions over FY26–27.
- Actionable Calls:
- CapitaLand Integrated Commercial Trust (CICT): BUY, Target Price 2.80 (current price: 2.29)
- Mapletree Logistics Trust (MLT): BUY, Target Price 1.55 (current price: 1.15)
- Parkway Life REIT (PLife): BUY, Target Price 4.75 (current price: 4.00)
- Keppel REIT (KREIT): BUY, Target Price 1.05 (current price: 0.89)
- Centurion Accommodation REIT (CAREIT): BUY, Target Price 1.30 (current price: 1.10)
- NTT DC REIT: BUY, Target Price 1.20 (current price: 0.915)
- Capitaland Ascott Trust (CLAS): BUY, Target Price 1.15 (current price: 0.88)
- Highlights:
- Top picks: CICT, MLT, KREIT, PLife. Mid-cap picks: LREIT, CLAS, CAREIT, NTT DC.
- Risks to watch: More hawkish Fed, sharper global slowdown or recession.
- Sensitivity analysis shows DPU impact from higher utilities likely contained (-0.3% to -2.7%) due to hedges and cost pass-through.
- Sector benefits from refinancing spreads (~200 bps), supporting DPU resilience and growth.
- Office, Industrial, Retail, and Accommodation sectors prioritized for growth and resilience.
above is an excerpt from a report by DBS Bank Ltd. Clients of DBS Bank Ltd can be the first to access the full report from the DBS website : https://www.dbs.com
