“With the sector’s earnings resilience proven during the Covid-19 recession and with economies re-opening, we believe that sector remains on a firm footing to deliver decent growth of more than 3% compound annual growth rate (CAGR) over FY2021-FY2023,” they add.
Industrial Singapore REITs (S-REITs) are now the plays for the “new economy”, write DBS Group Research analysts Dale Lai and Derek Tan in a sector report on Sept 23.
“Investors have often baulked at the industrial S-REITs’ tight yields of [around] 5.7% (4.5% for large caps) but we believe that this premium is justified,” say the analysts.
