He notes that “capital flows into yield names remain strong, underpinned by recovering cash flows and distribution per units (DPUs)”.
Maybank Kim Eng (MKE) analyst Chua Su Tye remains bullish on Singapore-listed REITs (S-REITs) given how they are still seen to give good yields, having gained about 2.4% m-o-m to outperform the market. This was boosted by a 20-30 basis points pull-back in the US Treasury 10-year yield since end-April.
“S-REITs currently trade at 2.7% above the 10-year government bond yield, undemanding versus peers, and should remain in favour against rising inflation pressures and expectations of strong DPUs into 2HFY2021,” writes Chua in a note on June 14.
