SINGAPORE (Dec 19): DBS Research is expecting Singapore REITs (S-REITs) to deliver DPU growth in 2019.

DBS, which has an “overweight” rating on the S-REITs sector, expects investors to gravitate towards the retail and industrial sectors in 2019, due to the heightened risk surrounding demand for office space and hotel rooms arising from the ongoing trade war and risk of near-recession conditions in the US in 4Q20.

In a market focus report, lead analyst Mervin Song says, “Both the retail and industrial sectors have less downside risk to earnings given their exposure to nondiscretionary suburban retail spend and longer WALEs in comparison to office and hotel REITs.”

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