At current prices, US Office SREITs are now trading at 11% to 16% yield and 0.5 time to 0.7 time price-to-book.
SINGAPORE (Mar 20): DBS Group Research has “buy” calls on all three US office Singapore REITs. It has target prices of $1.15 on Manulife US REIT, $1.05 on Prime US REIT and 90 cents on Keppel Pacific Oak US REIT.
Following the recent development of the Covid-19 spreading to North America and Europe that could tip these economies into a recession, the share price of US Office SREITs has taken a big hit, falling off a cliff by 47%-50% from its peak only in January this year.
