S-REITS underperforming broader market, but declines not sector specific: “Hedge funds are in a ‘risk-off’ mode, so there are long-only hedge funds taking risk off the table, it’s not just REITs,” says an analyst at a foreign house.

Analysts broadly upbeat on sector outlook, especially office: Nomura expects more upside to office landlords “as a rising asset cycle lifts their underlying book values.” Says office landlords typically see price performance tied to asset cycle while office REITs depicted as ‘yield plays’, says “investors should keep an eye on asset values rather than simply focusing on yields to assess potential unit price performance.”

Adds, “we see Singapore office landlords, both REITs and companies alike, as proxies to the office asset cycle, which we view as being underpinned by rising rents.”

Reaffirms Buys on K-REIT (K71U.SG), CCT (C61U.SG), Suntec REIT (T82U.SG), Singapore Land (S30.SG). CCT off 2.7% at $1.44, K-REIT down 0.7% at $1.39.