DBS Group Research says the recent correction in prices for big industrial Singapore REITs (S-REITs), which dropped 18% from its recent peak, presents a good opportunity to buy.

DBS analysts Derek Tan, Rachel Tan, Dale Lai and Geraldine Wong say that the decline in prices follows a spike in 10-year yields on the back of inflation fears, as well as rotational interest into cyclical subsectors including office, retail and hospitality.

The analysts note that the correction closely mirrors the 21% peak-to-trough drop that happened in 2013 when yields shot up, and believe that the correction is largely done as yields taper off.

To continue reading,

Sign in to access this Premium article.

Subscription entitlements:

Less than $9 per month
3 Simultaneous logins across all devices
Unlimited access to latest and premium articles
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)

Stay updated with Singapore corporate news stories for FREE

Follow our Telegram | Facebook