Maybank Kim Eng remains 'positive' on S-REITs; prefers retail REITs among sector

Maybank Kim Eng analyst Chua Su Tye has kept “positive” on Singapore REITs (S-REITs) though he says he sees heightened volatility ahead for the sector, which could lead to valuations remaining under pressure.

S-REITs have retreated by 5% since January, underperforming the market by 9% against rising inflation expectations and a steepening yield curve.

That said, Chua has remained positive on fundamentals as the sector is past its rent relief cycle. Overseas diversification has also strengthened distribution per unit (DPU) visibility for S-REITs, he notes.