Institution: Singapore Real Estate Investment Trusts Seem Undervalued

These analysts stated that the industry’s expected dividend yield for 2026 is 5.7%, indicating a yield spread of approximately 350 basis points compared to the 10-year EMEA bond yield. They anticipate that in the upcoming earnings season, the operating performance of EMEA real estate investment trusts will generally trend positively. They recommend closely monitoring any potential drag from Middle East conflicts, particularly the impact on trusts focused on the hospitality sector, as well as guidance regarding rental rates and debt costs. Lock and Li remain optimistic about CapitaLand Integrated Commercial Trust in EMEA due to its visible growth in distribution per unit, and also favor CapitaLand Ascendas REIT given the resilience of its portfolio.