S-REITs kept at ‘overweight’ by CIMB but hospitality is least preferred

SINGAPORE (June 14): CIMB is reiterating its “overweight” call on S-REITs, though hospitality remains its least preferred sub-sector as the house does not anticipate a recovery in RevPAR in 2016 just yet.

In 4M16, visitor arrivals to Singapore rose a robust 14% to 5.53 million from a year ago, propelled by Chinese, Indonesian and European visitors.

“We now expect 7% on-year growth in visitor arrivals to 16.3 million for 2016 vs. Singapore Tourism Board's (STB) estimation of 0-3% growth (15.2-15.7 million),” says analyst Yeo Zhi Bin in a Monday note.

---

Related Stories

• Changes in ICR, leverage to come into effect immediately, with additional disclosures in March
• Phillip Securities ‘overweight’ on S-REITs; expects three rate cuts next year, not five
• Link REIT appoints Eng-Kwok Seat Moey as independent non-executive director

---