While Guha expects that counters will be range-bound in the short term “following a 15% run up” in the last three months, he maintains a “positive mid-term outlook”. The change in interest rate trajectory is “supportive” for the sector bolstered by associated benefits such as sector flows, transactions, asset values and recycling. Guha maintains his estimates, ratings and target price while shifting his preferred picks to include higher yielding and more geographically diversified REITs.
Following the recent US Federal Reserve (Fed) rate cuts, Maybank Securities’ Krishna Guha maintains his positive sector stance but shifts his preferred picks away from low-yielding CapitaLand Ascendas REIT (SGX:A17U
) (CLAR) to CDL Hospitality Trusts (SGX:J85) (CDLHT).
As at his Sept 23 report, Guha’s picks are CapitaLand Integrated Commercial Trust (SGX:C38U) (CICT), CDLHT, Far East Hospitality Trust (SGX:Q5T) (FEHT), Lendlease Global Commercial REIT (SGX:JYEU) (LREIT), Mapletree Logistics Trust (SGX:M44U) (MLT) and OUE (SGX:LJ3) REIT.
