Reits

Reits: Morgan Stanley sees limited downside for S-Reits in near term given investors' continued demand for higher yields amid current low interest rates. Adds rising asset values, esp for office properties, also supportive while stronger SGD vs USD will help underpin SGD-denominated assets. Still, Reits could find it challenging to pursue yield-accretive acqns as competition for assets heats up & capital values continue rising.

Raises CCT target price to $1.55 from $1.40 (keep at Overweight), up Suntec target to S$1.50 from $1.31 (keep at Equalweight), up CapitaMall Trust target to $2.06 from $2.00 (keep at Equalweight), upgrades Ascott to Overweight from Equalweight but keeps target at $1.30, up CDL Hospitality target to $2.03 from $2.00 (keep at Equalweight), upgrades Mapletree Log to Overweight from Equalweight & up target to $0.97 from $0.90, downgrades Ascendas to Underweight from Equalweight but lifts target to $2.01 from $1.96.