On the top outperforming REITs in the sector, Koh writes: “We saw mild recovery in S-REITs with exposure to new economy asset classes. Logistics REITs Mapletree Logistics Trust (MLT) and Frasers Logistics & Commercial Trust (FLCT) gained 1.8% and 0.8% respectively. Industrial REITs AIMS APAC REIT (AA REIT) and Ascendas REIT (A-REIT) gained 0.7%, while retail REIT Lendlease Global Commercial REIT (LREIT) increased 1.3%.”
UOB Kay Hian analyst Jonathan Koh has maintained his “overweight” rating for the Singapore REIT (S-REIT) sector, which he believes is “resilient” due to its defensive characteristics and stable cash flows.
In his report on July 19, Koh notes that the sector underperformed the benchmark Straits Times Index (STI) by 0.7% in the first two weeks of July due to concerns over elevated inflation and uncertainties emanating from Russia’s invasion of Ukraine, adding that the sector’s underlying real estate could serve as a hedge against inflation.
