As Singapore is expected to enter Phase 3 of the reopening of its economy on Dec 28, OCBC Investment Research has recommended investors to focus on selected local real estate investment trusts (REITs).
OCBC says certain REITs – in what the brokerage terms as the “Recovery S-REITs basket” – will be able to outperform in the near term.
They are CapitaLand Integrated Commercial Trust (CICT), Frasers Centrepoint Trust (FCT), Mapletree North Asia Commercial Trust (MAGIC) and Ascott Residence Trust.
On the other hand, continued rotation into recovery and value stocks may result in near-term selling pressure on the Singapore REITs (S-REITs), which have outperformed year-to-date, OCBC warns.
“We see further pull-back in share prices of these S-REITs as buying opportunities for investors with longer-term investment horizons,” OCBC’s research team writes in a note dated Dec 15.
However, if investors have longer term investment horizons, OCBC has several preferred picks from its “Resilient basket”.
They are Ascendas REIT (AREIT), Keppel DC REIT (KDCREIT), Frasers Logistics & Commercial Trust (FLT), Mapletree Industrial Trust (MINT) and Manulife US REIT (MUST).