“On price-to-book ratio (P/BV) terms, S-REITs on average currently trade closer to book at 0.98 times, slightly below the long-term mean (since 2010) of 1.03 times. We see room for book value to rise slightly by end 2025 with the declining interest rate outlook,” adds the analyst.
S-REITs have “turned the corner” and now face a “brighter” 2026 outlook, aided by a moderating interest rate outlook, resilient economy and government policies to revitalise the local market, says RHB Bank Singapore analyst Vijay Natarajan.
Valuations, too, are attractive, and the sector is trading closer to book and offers 6% yields, adds Natarajan in an Oct 1 note.
