UOB Kay Hian analyst Jonathan Koh has kept “overweight” on the Singapore REITs (S-REITs) logistics sub-sector on the back of tailwinds from e-commerce and building resiliency in supply chains.
E-commerce is a key driver of demand as online retail sales require three times the logistics space compared to that of physical retail spaces.
On average, every US$1 billion ($1.34 billion) creates demand for 1m sf of logistics space, says Koh.
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