Investors are also underweight on the developer/asset manager front. “There was a clear preference towards [developers and asset managers] given cheaper valuations (especially City Developments (CDL) and CapitaLand Investment (CLI) after a sharp 15-20% share price sell-off since start of geopolitical conflict, upcoming residential launches expected to do well (given still-soft mortgage rates) and sustained liquidity inflow from Equity Market Development Programme (EDQP) in 2H2026 and 1H2027,” the Citi report says.
Citi Research said it met with several investors during its 2026 Property & Financials Conference and marketing trip in Hong Kong. These investors remain underweight on Singapore real estate, but with clear preference for developers and asset managers, and select S-REITs with decent distribution per unit (DPU) growth, such as CapitaLand Integrated Commercial Trust (CICT) and Keppel DC REIT (KDC REIT).
These investors are underweight the sector because of hawkish interest-rate outlook (in the US, which has traditionally been more negative on S-REITs; anaemic DPU growth except for CICT and KDC REIT, which are very well-owned; unexciting operating landscape and outlook on overseas sectors, such as Greater China logistics/office/retail, India/US business parks and Australia office; lack of new ideas.
