RHB Bank Singapore believes Singapore real estate investment trusts (S-REITs) have recovered and are poised for "brighter" 2026 prospects, The Edge Singapore said in a recent report.
Analyst Vijay Natarajan said tempering interest rates, a strong economy, and supportive government policies are key tailwinds for the sector, according to the report.
The industry currently offers a 6% yield and trades near to book at 0.98x, the report cited the analyst as saying.
Natarajan favors industrial REITs first among subsectors due to income resilience and an optimistic growth outlook, followed by office and retail, the report said.
However, the analyst expressed caution regarding the forecasts for overseas and hospitality REITs, according to the write-up.
Natarajan's top stock picks include CapitaLand Ascendas REIT (SGX:A17U), CapitaLand Integrated Commercial Trust (SGX:C38U), Frasers Centrepoint Trust (SGX:J69U), Suntec REIT (SGX:T82U), and AIMS APAC REIT (SGX:O5RU), the report said.
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