Singapore REITs are likely to gradually catch up with the broader gains in the equities market, UOB Kay Hian says. The Singapore REIT sector is still largely lagging recovery in the local equities market despite support from lower domestic interest rates, says analyst Jonathan Koh.

These rates are likely to remain low thanks to safe-haven inflows, which would indicate that Singapore REITs' cost of debt has peaked, he adds. He maintains an overweight rating on Singapore REITs. He prefers blue-chip names with specific catalysts. This includes CapitaLand Ascendas REIT, which upgraded its outlook for gains in the rates of rents renewed.