SINGAPORE (July 20): PhillipCapital is initiating a “buy” on US office REITs as the sector has remain resilient amid a new normal. The research house has also initiated “buy” calls on its top sector picks Manulife US REIT and Prime US REIT with target prices of 80 US cents and 88 US cents, respectively.

The US economy faced a rough start to 2020, as the year opened with a global pandemic. US GDP shrank 4.8% in the first quarter - the biggest contraction since the financial crisis, and the economy is expected to contract between 3.6% and 7.4% in 2020.

In the near-term, the pandemic has resulted in fewer workers in the office and more satellite offices being built up in the suburbs.

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