SG REITS

SG REITS: UBS has REITS report. Note that SG REITs currently trading at 6.4% 2011E yield (393bps above 10yr bonds) with 2010-2014E DPU growth at 1.9% and Hospitality REITs posting the highest growth at 8.2%. Top picks are CDL HT for upside in hotel room rates, CMT and FCT for retail exposure, and CCT as a beneficiary of the office rental recovery.