Maybank Kim Eng (MKE) analyst Chua Su Tye remains bullish on Singapore-listed REITs (S-REITs) given how they are still seen to give good yields, having gained about 2.4% m-o-m to outperform the market. This was boosted by a 20-30 basis points pull-back in the US Treasury 10-year yield since end-April. 

“S-REITs currently trade at 2.7% above the 10-year government bond yield, undemanding versus peers, and should remain in favour against rising inflation pressures and expectations of strong DPUs into 2HFY2021,” writes Chua in a note on June 14. 

He notes that “capital flows into yield names remain strong, underpinned by recovering cash flows and distribution per units (DPUs)”.

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