Fund flows within the sector have been mixed in 2024, but DBS is seeing “incremental interest” into the sector. Singapore REITs’ share prices have remained volatile through 4Q2024, reversing most of the 14% gain in 3Q2024. The recent volatility is due to swings in rate cut expectations, with the latest shift driven by a more hawkish tone after Donald Trump’s election as the upcoming US president.
After facing two years of erosion due to the impact of higher interest rates, S-REITs will post a turnaround in distribution per unit (DPU) growth over FY2025-FY2026, at 3.4%, according to DBS Group Research.
DBS analysts Derek Tan and Geraldine Wong cite a stable operating climate and expectations of a more “gradual” rate cut trajectory through 2025.
