At end 2023, S-REITs rallied about 30% on expectations of rate cuts, but reverted to the low when the US Federal Reserve (US Fed) kept rates stable. After September’s rate cut, S-REITs rallied about 25%, but the gains were fully reversed once again post-US elections, the analysts note.
After two false starts for rate-cut rally, Macquarie Equity Research has initiated coverage on 11 Singapore REITs, naming CapitaLand Ascendas REIT (SGX:A17U
) (CLAR), Keppel DC REIT (KDC REIT), Mapletree Logistics Trust (SGX:M44U) (MLT) and Mapletree Pan Asia Commercial Trust (SGX:N2IU) (MPACT) as their top picks.
Analysts Rachel Tan and Jayden Vantarakis’s target price for CLAR, KDC REIT, MLT and MPACT are as follows: $3.28, $2.60, $1.65 and $1.60. The analysts believe investors have an opportunity to accumulate S-REITs which now trade at pre-rate-cut trough valuations.
