The analyst generally recommends seeking more defensive shelter, specifically in trusts with strong balance sheets, long WALEs and exposure to more resilient sectors such as suburban retail.
SINGAPORE (July 31): OCBC Investment Research is maintaining “neutral” on Singapore REITs (S-REITs) with a weaker outlook for the hospitality sub-sector, which has prompted a pushback in expectations for a pick-up in Singapore hotel RevPAR this year to early 2019.
In a Tuesday report, lead analyst Andy Wong says he finds hospitality REITs less attractive than before in terms of valuations, given the relatively muted DPU growth outlook for 2H18 as well as the rising interest rate environment.
