Broker Name: DBS Bank Ltd
Date of Report: 31 March 2026
Excerpt from DBS Bank Ltd report
Report Summary
- Key Idea: Singapore REITs (S-REITs) are entering a “stag-flationary” period with a position of strength. Current valuations are approaching cyclical lows, reflecting significant macro risks already priced into share prices.
- Actionable BUY Calls & Target Prices:
- CapitaLand Integrated Commercial Trust (CICT): BUY, Target Price: 2.80
- Mapletree Logistics Trust (MLT): BUY, Target Price: 1.55
- Parkway Life REIT: BUY, Target Price: 4.75
- Keppel REIT: BUY, Target Price: 1.05
- Centurion Accommodation REIT: BUY, Target Price: 1.30
- NTT DC REIT: BUY, Target Price: 1.20
- Capitaland Ascott Trust: BUY, Target Price: 1.15
- Most Important Idea: Despite macro uncertainties and higher utility costs, S-REITs are well-positioned due to hedging, refinancing buffers, and high earnings visibility. Modest DPU growth of around 3% is expected over FY26–27.
- Highlights:
- Current sector valuations at 0.9x P/B, FY26F yield of 6.3%, with attractive spread (4.1%) over Singapore 10-year bond yield.
- Impact of a 20% rise in utility costs is estimated to reduce distributions by only 1–2.7% at worst, thanks to hedges and cost pass-through mechanisms.
- Office, logistics, and healthcare REITs are preferred due to strong fundamentals and pricing power.
- Key downside risks: more hawkish FED actions and sharper global slowdown.
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
