Singapore REITsI was reading the equity research report issued by Standard Chartered dated 8 May 2013 on Singapore REITs, "Yield is not a differentiator; buy growth".
On Page 1 of this report, "SREIT rose 13% YTD and now trade at 1.24x P/NAV. At the last peak in 2Q07, the top four SREITs traded at 3.8% DPU yield and 1.6x P/NAV. But assst yields, leverage and interest rates were higher then"
On Page 3 of this report,"Potentially,SREITs could achieve 15-20% upside from here by raising their leverage to 40-45%.... However, if the market expects interest rate to rise within the next two years, outperformance from here could be capped at c.10%"
On page 4 of this report, "Over the past 12 months, the yield gap among SREITs has narrowed. We believe further yield compression will benefit all SREITs. We think outperformance will start to depend more ......
