SG REITS

SG REITS: CIMB has sector report. Note that S-REITs’ valuations have become compelling again, with average CY12 yields now at 7%. House upgrade the sector from Neutral to Overweight and upgrade CMT and CDLHT to Outperforms following their recent pullback. Prefer the hospitality, industrial and retail segment over office. Key picks are AREIT, FCOT, Starhill, Cache and CDLHT. CCT remains an Underperform.