The analysts see S-REITs in the retail, industrial, office and hotel sectors to benefit from the cuts, due to their abilities to deliver earnings surprises on resilient income generation ability.
DBS Group Research analysts Derek Tan, Geraldine Wong and Dale Lai see Singapore REITs (S-REITs) continuing to attract flows with the anticipated interest rate cut by the US Federal Reserve (US Fed) in September.
While economists at DBS have maintained that there will be two 25 basis point (bps) cuts in 2024 from September through December, some market watchers are looking at cuts of up to around 50 bps in September, with a few even hinting at an emergency interest rate cut before the month.
