REIT Discover: Sasseur Sizzles with 9% Yield

REIT Discover: Frasers Commercial Trust (FCOT SP) At Inflection Point

Frasers Commercial Trust (FCOT SP) Registers a Record Low Exit Yield on Divestment

Singapore Property Analyst

Anni Kum

Thematic (Sector/Industry)

United states / Thematic (Sector/Industry)

Mapletree Pan Asia Commercial Trust (MCT SP)

<p>The Singapore REITs (SREIT) sector continued its outperformance since our April report <a href="https://www.smartkarma.com/insights/singapore-reit-the-draft-master-plan-2019-boost-and-q1-scorecard" target="_blank" data-smartkarma-citation="insights:29029" rel="noopener">Singapore REIT - The Draft Master Plan 2019 Boost and Q1 Scorecard.</a>Year-to-date, the Singapore Industrial REITs gained the most by about 21%, followed by the Retail (+19%) and Office (+18%).  The REIT sector's outperformance was mainly led by the large cap REITs, which currently trade at close to an all-time high based on valuations. Nonetheless, we remain positive on the sector in view of the dovish interest rate outlook which sustains yield-accretive acquisitions due to lower costs of capital. The recent proposal by the MAS to review gearing limits and streamline fundraising process to provide SREITs with better flexibility in managing their capital structure could further drive acquisition growth prospects for the sector.  </p><p>We have recalibrated a list of our preferred picks based on the same criteria of attractive valuation and acquisition pipeline/growth potential. Our top picks, which tend to carry higher risks than our larger cap REITs in the full list, are <a href="https://www.smartkarma.com/entities/frasers-commercial-trust" target="_blank" data-smartkarma-citation="entities:13879:1" rel="noopener">Frasers Commercial Trust (FCOT SP)</a>, <a href="https://www.smartkarma.com/entities/sasseur-reit" target="_blank" data-smartkarma-citation="entities:26807:1" rel="noopener">Sasseur REIT (SASSR SP)</a> and <a href="https://www.smartkarma.com/entities/cambridge-industrial-trust" target="_blank" data-smartkarma-citation="entities:10934:1" rel="noopener">ESR-REIT (EREIT SP)</a>.</p>

The Singapore REITs (SREIT) sector continued its outperformance since our April report Singapore REIT - The Draft Master Plan 2019 Boost and Q1 Scorecard.Year-to-date, the Singapore Industrial REITs gained the most by about 21%, followed by the Retail (+19%) and Office (+18%).  The REIT sector's outperformance was mainly led by the large cap REITs, which currently trade at close to an all-time high based on valuations. Nonetheless, we remain positive on the sector in view of the dovish interest rate outlook which sustains yield-accretive acquisitions due to lower costs of capital. The recent proposal by the MAS to review gearing limits and streamline fundraising process to provide SREITs with better flexibility in managing their capital structure could further drive acquisition growth prospects for the sector.  We have recalibrated a list of our preferred picks based on the same criteria of attractive valuation and acquisition pipeline/growth potential. Our top picks, which tend to carry higher risks than our larger cap REITs in the full list, are Frasers Commercial Trust (FCOT SP), Sasseur REIT (SASSR SP) and ESR-REIT (EREIT SP).

Mapletree North Asia Commercial Trust (MAGIC SP)

Singapore REIT - Cautious Search for High Yield