With FY2025 yields of 6.7% or trading between -1 to -2 standard deviations (s.d.), this implies that earnings risks are "substantially priced in".
Value investors or longer-term investors could look at "out-of-favour" Singapore REITs (S-REITs) such as Mapletree Pan Asia Commercial Trust (SGX:N2IU
) (MPACT), Far East Hospitality Trust (SGX:Q5T) (FEHT), Masseur REIT and Frasers Logistics and Commercial Trust (FLCT) for alpha opportunities, say DBS Group Research analysts Derek Tan, Dale Lai, Geraldine Wong and Tabitha Foo.
These REITs, which have risks mis-priced, present an opportunity, the analysts write in their April 15 report.
