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DBS analysts maintain preference for FCT, LREIT, CICT and CLAS S-REITs as macro environment normalises

Nicole Lim
Nicole Lim • 3 min read
DBS analysts maintain preference for FCT, LREIT, CICT and CLAS S-REITs as macro environment normalises
Investors should continue to add to their positions, despite volatility in the interim, as interest rate cuts approach in mid-2024. Photo: Bloomberg
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DBS Group Research analysts have maintained their strategic call to shift allocations into retail, commercial, and hospitality Singapore REITs (S-REITs), as the overall rate environment gradually normalises. 

Analysts Derek Tan, Rachel Tan, Dale Lai and Geraldine Wong like Frasers Centrepoint Trust (SGX:J69U) (FCT) and Lendlease Global Commercial REIT (SGX:JYEU) (LREIT) for retail, Capitaland Integrated Commercial Trust (CICT) for commercial, and CapitaLand Ascott Trust (SGX:HMN) (CLAS) for hospitality. 

These sectors are trading close to the -1 standard deviation (s.d.) of the mean in P/BV and yield terms, say the analysts. 

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