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SEE: Equity, bonds or perpetuals of Singapore REITs: Which to pick?
“Among the retail REITs, we believe Mapletree Commercial Trust (MCT) is in the best position for inorganic growth, given its more stable income and lower cost of equity,” they write. That said, Eing and Lock’s top pick remains Frasers Centrepoint Trust (FCT) “as we expect it to recover faster from Covid-19 vs. its peers” amid improving shopper traffic and as the office crowd returns on easing social distancing measures. “We also like LREIT due to the long lease structure of Sky Complex, which would lessen the impact of negative rental reversions on overall income; it is also trading below book at 0.9 times,” they add.