S-REIT Update Position your S-REIT portfolio to achieve sust | FSMOne SG - Research Highlights

S-REIT Update

Position your S-REIT portfolio to achieve sustainable passive income in the long run

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• For the first half of 2021, office and retail S-REITs have outperformed industrial and data centre S-REITs thanks to the rotation to value stocks.

• After the decent run up in the share price of Keppel REIT, we think it is time for investors to sell the stock.

• With rising vaccination rates, hospitality REITs with a larger exposure to domestic travel demand should be able to outperform. Our pick for this sub-segment is ARA US Hospitality Trust.

• We generally prefer the industrial and data centre sub-segments due to their stronger fundamentals. We expect them to deliver resilient growth, supported by structural trends accelerated by the pandemic. Our pick is Ascendas REIT.

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: ARA US Hospitality Trust (SGX:XZL), Ascendas REIT (SGX:A17U)