In his report dated July 21, the analyst anticipates investors shifting back to industrial REITs in 2HFY2022 as defensive REIT plays, with income resilience a priority amid a more challenging and uncertain global economic outlook. Defensive REIT plays take precedence over reopening play sectors REITs such as hospitality and retail, which outperformed in 1HFY2022, he says.
RHB Group Research analyst Vijay Natarajan has maintained his “overweight” rating of the Singapore REIT (S-REIT) sector, which he says is growing despite rising risks.
Reminding investors to “stay selective” amid a challenging outlook, Natarajan says: “Despite rising macroeconomic risks and inflationary pressures, we expect S-REITs to register positive DPU growth in 2022. While volatility is expected to increase, we believe selective REITs are currently trading at attractive valuation, offering good long-term entry levels.”
