SINGAPORE (July 2): As daily new confirmed cases reached 80,000 in the US last week, the UOB Kay Hian Singapore REIT (S-REIT) Index corrected 0.8% week-on-week to 247.7 in the same week.
Analysts Jonathan Koh and Peihao Loke remain unfazed at the correction. In fact, they see it as an opportunity to accumulate retail REITs such as CapitaLand Mall Trust (CMT) and Frasers Centrepoint Trust (FCT) with target prices of $2.60 and $2.85 respectively.
Koh and Loke also recommend stocking on units in Ascott Residence Trust (ART) with a target price of $1.16; Far East Hospitality Trust (FEHT), with a target price of 62 cents; and Keppel REIT (KREIT) with a target price of $1.30.
S-REITs’ top performers last week include data centre REITs Keppel Data Centre REIT (KDCREIT) and Mapletree Industrial Trust (MIT), which gained 4% and 2.8% respectively.
Keppel Data Centre REIT entered into a joint venture with SPH subsidiary Times Properties on June 29 to incorporate a new joint venture company at 82 Genting Lane.
Mapletree Industrial Trust acquired the remaining 60% stake in 14 data centres in the US on June 23. “The transaction is expected to boost pro-forma FY20 DPU by 3.4% to 12.66 cents, and net asset value (NAV) per share by 3.7% to $1.68,” say Koh and Loke.
Defensive S-REITs United Hampshire REIT and Parkway Life REIT, as well as industrial REITs Ascendas REIT (A-REIT), and Mapletree Logistics Trust (MLT) increased 1.75, 1.2%, 1.6%, and 1% respectively.
Conversely, CDL Hospitality Trusts (CDLHT), Ascott Residence Trust (ART), Frasers Hospitality Trust (FHT), and FEHT fell 8%, 6.6%, 6%, and 4.7% respectively. Lendlease Global Commercial REIT (LREIT) and Starhill Global REIT (SGREIT) dropped 6.8% and 6.4% respectively.
Units in CapitaLand Mall Trust closed 3 cents higher, or 1.5% up at $2.03.
Units in Frasers Centrepoint Trust closed 2 cents higher, or 0.9% up at $2.34.
Units in Keppel Data Centre REIT closed 1 cent lower, or 0.4% down, at $2.55.
Units in Mapletree Industrial Trust closed 4 cents higher, or 1.4% up, at $2.94.
Units in United Hampshire US REIT closed 0.5 cents lower, or 0.8% down, at 59.5 cents.
Units in Parkway Life REIT closed 6 cents higher, or 1.8% up, at $3.41.
Units in Ascendas REIT closed 9 cents higher, or 2.8% up, at $3.28.
Units in Mapletree Logistics Trust closed 6 cents higher, or 3.0% up at $2.03.
Units in CDL Hospitality Trust closed 1 cent higher, or 1.0% up, at $1.05.
Units in Ascott Residence Trust closed 2 cents higher, or 2% up at $1.02.
Units in Frasers Hospitality Trust closed 1 cent higher, or 2.2% up at 47.5 cents.
Units in Far East Hospitality Trust closed 2.5 cents higher, or 5% up at 52.5 cents.
Units in Lendlease Global Commercial REIT closed 0.5 cents higher, or 0.7% up at 68 cents.
Units in Starhill Global REIT closed 1 cent higher, or 1.9% up, at 52.5 cents.
