Broker Name: DBS Group Research
Date of Report: 4 March 2026
Excerpt from DBS Group Research report.
- Report Summary
- Geopolitical uncertainties and rising oil prices have increased market volatility, influencing expectations for the US Fed’s next rate move, with attention now on potential hikes and the upcoming mid-March FOMC meeting.
- Asian REITs (Singapore, Hong Kong, Thailand, China) are benefiting from lower domestic interest rates and supportive central bank policies, leading to lower funding costs and improved distribution outlooks.
- Regional performance is mixed: H-REITs (Hong Kong) rose on better sentiment; TH-REITs (Thailand) gained on political clarity and GDP growth; S-REITs (Singapore) dipped despite resilience in office/industrial; C-REITs (China) corrected due to liquidity tightening.
- Sector preferences: Office/industrial for S-REITs; retail for H-REITs and C-REITs; industrial/hotels for TH-REITs.
- Interest cost savings, particularly in Singapore and Hong Kong, are boosting Distribution Per Unit (DPU) growth outlooks for 2026, with Singapore’s 3M SORA and Hong Kong’s 1M HIBOR trending lower.
- In Singapore, office and industrial REITs are outperforming, supported by robust rental reversions and cost savings, with mid-cap REITs offering potential for alpha generation.
- Hong Kong REITs are catching up with large-cap property rallies, with lower funding costs supporting the sector, and large-cap office and retail names remain attractive for yields over 6%.
- China REITs are facing short-term pressure due to liquidity concerns but offer opportunity to accumulate quality names, especially those backed by strong sponsors and pipelines.
- Thai REITs advanced on political clarity and a central bank rate cut, with top picks in industrial, data center, and retail segments benefitting from stable income, diversified portfolios, and high yields.
- Overall, REITs in the region are positioned as safer havens amidst macro volatility, supported by falling interest rates, resilient fundamentals, and undemanding valuations.
Above is an excerpt from a report by DBS Group Research. Clients of DBS Group Research can be the first to access the full report from the DBS Group Research website: https://www.dbs.com/research
