S-REITs have fallen about 27% in absolute terms since the interest rate hikes started in 2022, caused by a surge in ultra-low financing costs enjoyed over the past decade.
RHB Bank Singapore analyst Vijay Natarajan has maintained his “overweight” call on the Singapore REITs (S-REITS) sector, as an earlier-than-expected interest rate cut and resilient economic growth have presented as key catalysts for the analysts’ optimism towards the industry.
Natarajan has “buy” calls on CapitaLand Ascendas REIT (SGX:A17U
) (CLAR), Keppel REIT, AIMS APAC REIT (AA REIT), and CDL Hospitality Trusts (SGX:J85) (CDLHT), with target prices of $3.20, $1.08, $1.46, $1.20 respectively.
