Retail REITs favoured on 'faster-than-expected' recovery: KGI

KGI Securities favours retail REITs on a faster-than-expected retail recovery in Singapore, say analysts in an Oct 5 note. 

REITs and Technology sectors are marked to “outperform” in an otherwise “neutral” climate, with competitor headwinds in the telecommunications sector driving it to “underperform”, according to KGI Securities’ Singapore research team.

“Given the gloomy outlook for interest rates, in addition to a cap on banks’ total dividends for FY2020 (60% of FY2019’s distributions), we think that REITs will continue to be a favourable opportunity for many investors. Focusing solely on the last quarter of 2020, we think that retail REITs will see a boost given the quick recovery in consumer spending in 3Q2020,” according to the analysts.

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