“The office sector remains our top REIT sector pick in Singapore, due mainly to potential for significant increase in book value as cap rates are compressed in-line with recent market transactions,” says Macquarie lead analyst Ken Ang in a report on Friday.
SINGAPORE (Nov 28): Macquarie Research is turning more cautious on Singapore real estate invest trusts (REITs) in 2018 as limited upside is expected for the sector.
While share prices of REITs have climbed some 17% year-to-date, Macquarie says further rises in long-term rates will put additional pressure on yield spreads – and in turn, share prices.
