industrial REITs

New economy assets are likely to be more resilient, but interest rates need to peak before industrial REITs can rally

Industrial REITs are likely to remain resilient says Cushman and Wakefield

Among the mid-caps, Lai and Tan say they prefer ALLT and ESR-REIT “for their access to new economy assets from sponsor pipelines”.

Phillip Securities thinks the worst could be over except for hospitality, barring a second pandemic wave.

This could especially be the case for industrial and office REITs, notes DBS Group Research.

The impact of the novel coronavirus (Covid-19) pandemic on the local real estate investment trust (REIT) sector is expected to bottom out in 2Q, according to RHB Securities.

"We believe the manufacturing sector will be the fastest to recover post Covid-19, riding on the back of a recover in the global economies from 2021 onwards," says DBS Group Research analyst Derek Tan.

At a time of economic and financial stress for equity markets, and in particular for the REIT sector, five REITs stand out.

The brokerage notes that ESR REIT boasts a diversified tenant base, or some 328 tenants across more than 15 sectors, which could in turn mitigate potential tenant defaults.

SINGAPORE (Jan 27): Last  year, real estate investment trusts proved they remained as bankers’ best friends after raising more than $6 bil­lion in secondary issuance alone, and excluding IPOs. In addition, two REIT mergers were completed. OUE Commerci