Property: Brexit impact (from CLSA)
- FHT, FCL and ART are the most earnings-sensitive to the UK Brexit.
- Additionally, residential and hospitality businesses of CAPL, CIT, FCL, ART, CDREIT, FHT and KDCREIT, may be impacted.
- CLSA assumes a stronger GBP/SGD, it will benefit earnings but will possibly be offset by higher operating costs & taxes, driving margin erosion.
- However, with rates likely to remain low in the near term, any correction in non-hospitality S-Reits are good buying opportunities.
- CLSA's top picks are CIT, FCL, MINT & MAGIC.
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