- FTSE ST REIT Index up 823.64 to 837.43 (+1.67%) on the month update.
- REIT Index has rebounded c43% as of July 12 from the bottom on Mar 23, 2020.
- Yield spread (reference to 10-year Singapore government bond of 0.896%) has tightened from 5.47% to 4.414% due to cut in dividend yield.
- The risk premium is still attractive to accumulate Singapore REITs in stages to lock in the current price and long-term yield after the recovery.
- Technically the REIT Index is currently trading on sideway consolidation until the breakout either break above the 200D SMA or break below the 50D SMA.
Technical Analysis
Currently the REIT index is currently trading on sideway consolidation, sandwiched between 200D SMA and 50D SMA. Immediate support at about 825 (Gap support) followed by 50D SMA. Immediate resistance at 200D SMA.
Short term direction: Sideway.
Most Overvalued REITs
- Keppel DC REIT (Price/NAV = 2.30)
- Mapletree Industrial Trust (Price/NAV = 1.83)
- Parkway Life (Price/NAV = 1.73)
- Mapletree Logistic Trust (Price/NAV = 1.67)
- Ascendas REIT (Price/NAV = 1.51).
Most Undervalued REITs
