Divergence in 2H 2010 guidance from Singapore REITs expected as Singapore’s economy still resilient despite growing uncertainty over global outlook, says OCBC Investment Research, according to Dow Jones.

“Multi-geography REITs, in our view, could be quicker to adopt a cautious tone on the outlook for earnings performance this year. In contrast, Singapore-skewed retail or industrial REITs may report stronger guidance and/or more aggressive growth plans,” says OCBC.

Overall, research house remains neutral on S-REIT sector as valuations for some names currently at significant premium to book value. Prefers mid- to large-cap REITs with stable, positive earnings outlook, strong balance sheets, still trading at attractive yields, discounts to book value.

Cites Starhill Global (P40U.SG), Frasers Centrepoint Trust (J69U.SG) as favourites. Cambridge Industrial Trust (J91U.SG) will be first S-REIT to announce results, due July 15.