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3 S-REITs to accumulate following the market pullback: OCBC

Michelle Zhu
Michelle Zhu3/6/2018 12:28 PM GMT+08  • 2 min read
3 S-REITs to accumulate following the market pullback: OCBC
SINGAPORE (Mar 6): OCBC Investment Research is maintaining its “neutral” stance on the Singapore REITs (S-REITs) sector with the conclusion of the 4QCY17 earnings season, which the research house deems to have offered “little surprises” as all 24
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SINGAPORE (Mar 6): OCBC Investment Research is maintaining its “neutral” stance on the Singapore REITs (S-REITs) sector with the conclusion of the 4QCY17 earnings season, which the research house deems to have offered “little surprises” as all 24 S-REITs under its coverage delivered results which met expectations.

In a Tuesday report, lead analyst Andy Wong recalls that OCBC has downgraded six S-REITs this earnings season on valuation grounds, while noting that the hospitality sector has fared the worst among its peers although retail delivered slightly positive growth.

“For hospitality, we are encouraged that some of the Singapore hotels and serviced residences have started to turn in positive RevPAR/RevPAU growth in 4QCY17. Retail landlords will have to continue to reposition their malls amid structural challenges, but the improvement in consumer confidence and Budget measures (one-off SG Bonus of $100-300 and GST hike implementation only from 2021 at the earliest) augurs well in the near-term,” comments Wong on the two S-REIT sub-sectors.

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