Despite the outperformance, the hospitality sub-sector's average forward yield of 6.2% and yield spread of 4.1% remain the highest among REITs, while its price-to-book value (PB/V) remains reasonable at 0.98 times in comparison to the S-REIT average of 1 times, he adds.
SINGAPORE (Sept 21): RHB Research is maintaining its "overweight" rating on Singapore REITs (S-REITs) on expectations of 2018 to be a turnaround year for the hospitality sub-sector as key growth drivers fall into place.
In a report on Wednesday, analyst Vijay Natarajan notes how hospitality REITs have outperformed their S-REIT peers and the STI by 13.6% and 11.8% respectively, being up by 16.4% in the year to date (YTD).
