They offer stable cash flows and are poised to benefit from upcoming interest rate cuts.

Investors are advised to look at “defensive and laggard S-REIT” stocks, which provide income stability in the uncertain macroeconomic climate created by the US-China trade tensions.

Singapore Real Estate Investment Trusts (S-REITs) are recognized for their stable cash flows, attributed to the long durations of their leases, typically lasting between three to ten years.

“S-REITs have largely underperformed the broader market recovery despite benefiting from lower domestic interest rates, which is perplexing. Therefore, they are unlikely to lead the decline during the current market correction,” stated Jonathan Koh, an analyst at UOB Kay Hian (UOBKH).

The target prices are set at S$2.79 for CapitaLand Integrated Commercial Trust (CICT), S$2.69 for Keppel DC REIT (KDCREIT), S$5.34 for Parkway Life REIT (PREIT), and S$0.79 for Lendlease Global Commercial REIT (LREIT).

S-REITs are also expected to benefit from the liquidity recovery anticipated due to upcoming rate cuts. The yield on 10-year Singapore government bonds has tightened, while the yield spread for S-REITs has widened year-to-date to 3.62%.

This advice follows the US's announcement of an additional 100% tariff on all Chinese imports, set to take effect on 1 November 2025, in response to China’s recently expanded export controls on rare earth minerals.

Additionally, the US government shutdown that began on 1 October, along with significant layoffs of federal employees during this period, could disrupt essential services, escalate unemployment, and challenge the economic stability of the United States, as highlighted by UOB Kay Hian in a report dated 13 October 2025.