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PHILLIP SECURITIES |
UOB KAYHIAN |
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Singapore REITs Monthly Interest cost savings intact
▪ The S-REITs Index fell 1.9% in February 2026, reversing the 0.7% gain in January 2026. Stoneweg Europe Stapled Trust (SERT SP, BUY, TP €1.89) was the top performer for the month, rising 6.9% on strong FY25 results. Prime US REIT (Prime SP, BUY, TP US$0.32) was the worst performer, falling 12.9% after rising 14.2% the month before, as investors weighed a slower-than-expected recovery in portfolio occupancy. Among the sub-sectors, Singapore retail led gains, rising 0.8%, while overseas commercial was the weakest, declining 8%, dragged by the US office S-REITs.
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Prime US REIT (PRIME SP) Rising Payout Ratio Accompanied By Higher Portfolio Occupancy
Highlights • PRIME has raised its payout ratio from 10% to 50% for the advanced distribution covering 1 Jul 25 to 5 Oct 25 and to 65% from 6 Oct 25 onwards. We expect the payout ratio to increase another 5ppt to 70% in 2027 and 2028.
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UOB KAYHIAN |
CGS INTERNATIONAL |
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Suntec REIT (SUN SP) New Sponsor Challenged By Hongkong Land
Highlights • Hongkong Land has emerged as a new potential suitor for SUN after acquiring a 10.8% stake on 19 Mar 26, two days after Tang Organisation was installed as the new sponsor. The timing was uncanny.
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AIA Group No Mark
■ AIA’s new chairman and ex-CEO, Mark Tucker, did not appear during its FY25 results briefing on 19 Mar, nor were there visible notable changes in AIA since he joined. ■ On balance, we see FY25 as a slight disappointment, with a slight miss on VONB and a slight beat on EV and OPAT per share.
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| MAYBANK SECURITIES | LIM & TAN |
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LHN Ltd (LHN SP) Broad-based momentum
Robust occupancies in 1QFY26, retain BUY We attended LHN’s 1QFY26 business update briefing on 19 Mar’26. While no financials were disclosed, its co-living portfolio has grown to 3,200 rooms in Singapore, with strong occupancy of 96.5% as at 31 Dec’25. Occupancy rates across Industrial and Commercial Properties also remained firm, ranging from 86% to 95%. Following the Nov’25 listing of its co-living business, Coliwoo (COLIWOO SP, CP SGD0.51, BUY, TP SGD0.74), we cut our FY26-27E forecasts 24%/17% to factor in LHN’s reduced stake in Coliwoo (now 65%-owned) and higher minority interest. Maintain BUY with a 27% higher TP of SGD0.70, pegged to 11x FY26E P/E.
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Seatrium is capitalized at $8bln and trades at 15x forward PE with consensus 1 year target price of $2.70 implying a potential upside of 16%. While Seatrium could potentially be a beneficiary of higher oil and gas prices due to the middle eastern unrest, we note that Keppel has resumed selling Seatrium shares last week (~5mln shares) and given the weakness in markets given the macro backdrop, we have an Accumulate on weakness rating on Seatrium.
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