RHB has reiterated its overweight stance on Singapore Real Estate Investment Trusts (S-REITs), citing softer interest cost pressures and robust operational numbers as key positives. The financial results for S-REITs have largely met expectations, with a cautiously optimistic outlook despite moderating figures. The report, released on 20 May 2025, identifies CapitaLand Integrated Commercial Trust, CapitaLand Ascendas REIT, Frasers Centrepoint Trust, Keppel REIT, and AIMS APAC REIT as top picks.
The report notes that uncertainties from US tariffs remain a risk, but sector valuations are considered benign, presenting favourable medium-term risk-reward scenarios. Analyst Vijay Natarajan emphasised the importance of these factors in maintaining the overweight recommendation.
The focus on Singapore-centric REITs is due to their resilience in the face of global economic challenges. The report suggests that the softer interest costs will help these REITs maintain strong operational performance, which is crucial for investors seeking stable returns.
In addition to the REITs sector, the report also covers other investment areas, including data centres and sustainable plantations. The broader market strategy includes insights from the ASEAN Investment Conference 2025, highlighting regional investment opportunities.
Looking ahead, RHB’s analysis suggests that whilst challenges persist, the strategic positioning of S-REITs and their operational strengths make them a compelling investment choice. The report underscores the potential for continued growth and stability in the sector, driven by favourable economic conditions and strategic asset management.
“`
