SG Reits

SG Reits: Daiwa has sector report. Note that REITs acceptable gearing, even under stress.
Gearing levels look comfortable, even with asset values back to early 2009. Maintain +ve view on the S-REIT sector, and regard any knee-jerk sell-down as an opportunity to accumulate units at better valuations and higher yields.

Major risk to +ve view would be a rapidly deteriorating global economic outlook, leading to
a prolonged economic slump in Spore. The realisation of this -ve outcome would place most of rental assumptions at risk and could lead to downward revisions to DPU f/casts.