SG Property: JP Morgan Upgrade sector to Overweight from Underweight. Quote sector as a ‘Safe haven at reasonable prices’. Note that attractive valuations for large cap developers CaptiaLand and City Dev, trading at 30% discount to RNAV, similar to that for small cap players AllGreen, GuoccoLand and Wingtai…..
Expect potential capital management catalysts. Upgrade City Dev to O/W from Neutral and Allgreen to Neutral from U/W. Downgrade Wheelock to U/W from O/W. House also like S-REITs for strong div yields and stable growth prospects, but recommends exposure to large cap developers such as CapitaLand and City Dev on a 12mth view.