Arm yourself with these 5 Singapore REITs before heading into 2018

SINGAPORE (May 18): DBS Vickers recommends investors to remain “overweight” on the office and industrial Singapore REIT (S-REIT) sectors due to the prospects of an improving Singapore GDP, as well as the expected easing of supply pressures come 2018.

“With upside to Singapore GDP growth forecasts, we believe this would translate to stronger pre-leasing activities at various new office buildings and takeups in the industrial space (Hi-Tech space and business parks). We remain confident of recovery in office rents by the end of 2017/early 2018, which should act as a catalyst to help close the c.20% discount to book values for the office sector,” explain analysts Mervin Song and Rachel Tan in a Wednesday report.

Their top “buy” pick in the office sector is Keppel REIT with a target price of $1.23 as it provides the largest exposure to premium Grade ‘A’ buildings in Singapore, which the analysts believe will be best placed to take advantage of the expected upswing in the Singapore office market next year.

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