Singapore REIT sector kept at ‘overweight’ with business parks first to recover

SINGAPORE (June 23): CIMB is maintaining its “overweight” call on Singapore’s REIT sector, supported by a flattening yield curve and abating supply pressures in 2018.

In a Friday report, analyst Yeo Zhi Bin is positive on business parks and believes that it would be the first sub-asset class to post recovery gains this year.

“We project occupancy to increase to 88.5% by end-17F (1Q17: 84%) and 92.4% by end-18F. We believe that rents would start to strengthen when island-wide occupancy meets the 90% mark,” says Yeo.

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