Property Singapore - UOB Kay Hian Research 2015-11-30: 1H16 Strategy ~ Interest-ing Times For Real Estate

Singapore Property WING TAI HLDGS LTD W05.SI  CITY DEVELOPMENTS LIMITEDC09.SI  ASCOTT RESIDENCE TRUST A68U.SI  MAPLETREE LOGISTICS TRUST M44U.SI  CAPITALAND COMMERCIAL TRUST C61U.SI 

Property – Singapore 1H16 Strategy: Interest-ing Times For Real Estate 

• We recommend an OVERWEIGHT stance on the sector as we believe concerns over a rise in interest rates have been overblown. 
• We prefer developers over REITs. 
• Developers are trading near undeserving crisis valuations and offer an attractive 6:1 reward-to-risk proposition. S-REIT yield spreads remain the most attractive regionally, with upcycle yield spreads indicating 30% upside potential. 
• Our top picks are CDL, Wing Tai, ART, MLT and CCT which offer deep-value and diversification. 

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