Downside for prices of Singapore REITs limited in near term given investors’ continued demand for higher yields amid current low interest rates, says Morgan Stanley, according to Dow Jones.

Morgan Stanley adds rising asset values, especially for office properties, also supportive, while stronger SGD vs USD will help underpin SGD-denominated assets.

Still, REITs could find it challenging to pursue yield-accretive acquisitions as competition for assets heats up, capital values continue rising. Rolls over target prices to peg at end-2011 valuations.

Ups CapitaCommercial (C61U.SG) target to $1.55 from $1.40, keeps at Overweight, ups Suntec (T82U.SG) target to $1.50 from $1.31, keeps at Equalweight, ups CapitaMall (C38U.SG) target to $2.06 from $2.00, keeps at Equalweight, upgrades Ascott (A68U.SG) to Overweight from Equalweight, keeps target at $1.30, ups CDL Hospitality (J85.SG) target to $2.03 from $2.00, keeps at Equalweight, upgrades Mapletree (M44U.SG) to Overweight from Equalweight, ups target to $0.97 from $0.90, cuts Ascendas (A17U.SG) to Underweight from Equalweight, lifts target to $2.01 from $1.96.