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REITs – Singapore S-REITs Bi-Weekly Updates (16-31 Aug 21)
About 80% of Singapore’s population has completed their full regimen and received two doses of COVID-19 vaccines, which paves the way for further easing of safe distancing measures. We recommend a balanced mix of New Economy and reopening plays. BUY New Economy plays AREIT (Target: S$3.83), FLT (Target: S$1.79), MINT (Target: S$3.63) and ALLT (Target: S$1.02). BUY reopening plays FCT (Target: S$3.06) and LREIT (Target: S$1.01). Maintain OVERWEIGHT.
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CDL Hospitality Trust Maiden foray into new lodging spaces
■ CDLHT ventured into residential BTR market in UK for a max sum of £73.3m. ■ Limited supply and strong demand will support the demand for its BTR. ■ This will enhance its income stability. DPU accretion 2.2%. Reiterate Add.
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CGS CIMB |
CGS CIMB |
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Banks MAS revamps its data disclosure
■ MAS has removed the segregation of system statistical data by DBU and ACU, paving the path towards more robust and complete disclosures. ■ Renewed data measurement suggests some contraction in system loans in Jul 21. Liquidity remained ample, with 85% LDR and 71% CASA ratio. ■ Reiterate sector Neutral. Impact of the dividend cap removal is played out. An earlier-than-expected Fed rate hike is a key re-rating catalyst for the sector.
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Singapore Strategy Aug wrap-up: Singapore in 5
■ The FSSTI closes Aug 21 at 3,055.05 pts, down 111.89 pts (-3.53%). ■ Rising number of daily Covid-19 cases tests Singapore’s attempts to reopen; economic data reassuring. ■ We keep our end-2021F FSSTI target at 3,496 pts, based on 0.5 s.d. above 12-year mean P/E of 15.2x.
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