SREITS

SREITS: CLSA maintains overweight post 1Q16 earnings
- Softer operating metrics across the board, although low interest rate environment has continued to help support prices
- Office REITs surprised positively though, while deteriorating metrics in the retail and industrial space were within CLSA’s expectations
- With S-REITs providing a forward yield of 6.3% as a whole and are valued at 0.9x P/.B, CLSA continues to feel that some S-REITs are attractive and thus reiterates its Overweight call on the sector.
- Its top picks are Ascendas REIT with TP of 2.42, Mapletree Greater China Trust with TP of 1.08 and Mapletree Commercial Trust with TP of 1.46
- Conviction Sell call is on Suntec REIT after cutting its TP further from 1.41 to 1.38