In his Oct 6 note, Krishna points out that over the past quarter, the SGD base rate, the 3-month SORA, has declined more than 60bps to 1.44% while the 10-year yield has fallen by 30bps to 1.92%, which helps lower financing cost and lift fair value.
Krishna Guha of Maybank Securities has upgraded his call on Lendlease Global Commercial REIT from "hold" to "buy", underpinned by falling interest and risk-free rates, resilient Singapore retail sales.
In addition, the REIT's active capital management efforts should lead to lower gearing and therefore higher distribution per unit.
