The analysts note that the correction closely mirrors the 21% peak-to-trough drop that happened in 2013 when yields shot up, and believe that the correction is largely done as yields taper off.
DBS Group Research says the recent correction in prices for big industrial Singapore REITs (S-REITs), which dropped 18% from its recent peak, presents a good opportunity to buy.
DBS analysts Derek Tan, Rachel Tan, Dale Lai and Geraldine Wong say that the decline in prices follows a spike in 10-year yields on the back of inflation fears, as well as rotational interest into cyclical subsectors including office, retail and hospitality.
