Which S-REITs Would Benefit Most From Rate Cut? Look at Analysts' Top Picks!
Analysts widely expect that S-REITs will be the primary beneficiaries during an interest rate cut cycle.
In the first half of this year, interest costs for $SATS LTD.(S58.SI)$ , $ParkwayLife Reit(C2PU.SI)$ , and $IFAST(AIY.SI)$ increased the most, more than doubling.
Thilan Wickramasinghe, Head of Research at Maybank Securities believes that interest rate cuts will help reverse the trend of rising interest costs for these companies.
$SATS LTD.(S58.SI)$ has surged significantly after its latest financial report. If it benefits from interest rate cuts, could SATS reach its previous highs?
If interest rates continue to drop significantly, S-REITs will benefit in three ways.
First, lower capital costs will increase fair value;
second, S-REITs can resume transactions and capital recycling;
finally, it will attract income-seeking investment capital.
$CapLand IntCom T(C38U.SI)$ , $CDL HTrust(J85.SI)$ , $CapLand Ascendas REIT(A17U.SI)$ , $Frasers Cpt Tr(J69U.SI)$ , $Far East HTrust(Q5T.SI)$ , and $Suntec Reit(T82U.SI)$ are Wickramasinghe's top picks.
Telecom companies could also benefit from rate cuts.
Telecom companies' stock prices typically have a strong inverse relationship with interest rates, meaning that as interest rates rise, stock prices fall. $NetLink NBN Tr(CJLU.SI)$ , which operates the nationwide fiber broadband network, could benefit from rate cuts.
Which S-REITs are you holding?
Is the rate cut been priced in in regard of their rally?
Leave your comment and share your top pick of S-REITs to win at least 5 tiger coins~
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經驗教訓
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自1月5日起，管理人已控制公司和法定代表人印章，以及中國物業管理團隊的合同和財務印章。
保薦人於1月15日向單位持有人通報，審批過程中的失誤導致三筆抵押貸款非法。
如果你認爲房地產投資信託基金是好的投資，好的PB、EPS、DY等，當問題發生時，好的PB和EPS不能不有所幫助。它會變平。所以永遠在你的風險限度內投資，不要因爲錢而發瘋。我總是考慮分散投資，雖然利潤不多，也不會損失太多。
希望BWCU有解決方案。
reits like $Mapletree Ind Tr(ME8U.SI)$ $Mapletree PanAsia Com Tr(N2IU.SI)$ $Mapletree Log Tr(M44U.SI)$ $ParkwayLife Reit(C2PU.SI)$ $CapLand IntCom T(C38U.SI)$ are those stocks that I prefer. of course there are some other good reits...
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Which S-REITs are you holding?
Is the rate cut been priced in in regard of their rally?
Leave your comment and share your top pick of S-REITs to win at least 5 tiger coins~
Some top-performing S-REITs include:
- * $FAR EAST HOSPITALITY TR.(FEHTF)$*: One of the best-performing REITs with positive total returns
- * $First Reit(AW9U.SI)$*: Another top-performer with strong returns
- * $AIMS APAC Reit(O5RU.SI)$*: Also among the top three best-performing REITs
- *CapitaLand Ascends REIT*: Showing positive total returns
- * $Mapletree PanAsia Com Tr(N2IU.SI)$ * and * $Mapletree Log Tr(M44U.SI)$*: Expected to benefit from the projected rally
DBS analysts expect these REITs to significantly benefit from the potential rate cut, with investors favoring those with heavy exposure to Singapore real estate.
HIGH DIVIDEND YIELD OF > 10%
Price.to book : 0.9x
LOW P/E : 8.9
PAYS DIVIDEND QUARTERLY!!
$First Reit(AW9U.SI)$
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