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DBS analysts see S-REITs bottoming out once Fed hikes lift off

Felicia Tan
Felicia Tan3/10/2022 04:22 PM GMT+08  • 3 min read
DBS analysts see S-REITs bottoming out once Fed hikes lift off
DBS's top S-REIT picks include FCT, CICT, Suntec, CLCT and MINT.
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Despite a 2% month-on-month collective increase within the Singapore REIT (S-REIT) sector, 15 of the 44 S-REITs are still trading within 5% of their 52-week lows.

However, DBS Group Research analysts Derek Tan, Dale Lai, Rachel Tan and Geraldine Wong say they see the sector bottoming out once the US Federal Reserve hikes lift off.

“Even if we assume 10-year yields will rise to 2.0% in the longer term, we are still looking at an attractive yield spread of 3.8% (in line with historical mean),” they write.

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