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Maybank 'negative' on retail REITs with Frasers Centrepoint Trust as top pick

Michelle Zhu
Michelle Zhu1/2/2018 12:01 PM GMT+08  • 4 min read
Maybank 'negative' on retail REITs with Frasers Centrepoint Trust as top pick
SINGAPORE (Jan 2): Maybank Kim Eng is initiating coverage on Singapore’s retail REIT sector with a “negative” rating on the belief that rising rates, peak new supply in 2018 and fair valuations should restrain near-term price upside.
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SINGAPORE (Jan 2): Maybank Kim Eng is initiating coverage on Singapore’s retail REIT sector with a “negative” rating on the belief that rising rates, peak new supply in 2018 and fair valuations should restrain near-term price upside.

This comes even as the sector is currently enjoying a cyclical recovery from a rebound in tourism and a more constructive economic landscape.

In a Tuesday report, analyst Chua Su Tye cautions of “daunting” structural challenges faced by Singapore’s retail REITs, given the persistence sales leakages from outbound travel and growing e-commerce competition which could see online penetration of retail sales climb to 10-20% from 4.6% presently.

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