S-REITs Bi-Weekly Updates (1-15 Mar 22)
The domestic economy will receive an uplift from streamlining of safe management
measures starting 15 Mar 22 and continued reopening of borders. Externally, the
Russia-Ukraine war creates heightened uncertainties. We seek solace and support from
S-REITs with resiliency. BUY ART (Target: S$1.29), FCT (Target: S$2.98), MCT (Target:
S$2.48) and MINT (Target: S$3.72). We also like CICT (Target: S$2.45) and SUN (Target:
S$1.74) for their diversified portfolios. Maintain OVERWEIGHT.
WHAT HAPPENED IN THE LAST TWO WEEKS
• FSTREI gained 0.5% in the past two weeks. Daily new cases of COVID-19 infection
peaked at 25,731 on 22 Feb 22 and has since trended lower gradually. The weekly infection
growth rate has dropped to 0.8 as of 15 Mar 22. The government has streamlined safe
management measures starting 15 Mar 22. Safe distancing is no longer required for maskon activities. Safe management measures at the workplace and in the community will be
aligned with the same group size limit at five. The maximum number of unique visitors per
household is adjusted from five persons per day to five persons at any one time. There is no
event size limits for religious service, business events, conferences, wedding receptions,
funerals and mask-on classes of up to 1,000 attendees. Large events with more than 1,000
attendees are subject to capacity limit of 50%.
• S-REITs remain resilient despite the market upheaval. The FSTREI gained marginally by
0.5%, compared to a slight decline of 0.2% for the FSSTI.
• Top outperformer: PREIT, a defensive healthcare REIT, gained 4%. Office REITs KREIT,
CICT and SUN gained 5.2%, 1.9% and 1.4% respectively. ELITE rebounded 3.3% after
investors realised that its properties are all located in the UK.
• Top underperformer: CERT and IREIT dropped 7.2% and 6.2% respectively as their
properties are all located in Europe. US REITs MUST, DCREIT, UHU and PRIME declined
4.6%, 4.5%, 4.0% and 3.9% respectively. Retail REITs with exposure to downtown malls are
LREIT, SGREIT and SPH, and they declined 4.2%, 4.2% and 1.6% respectively.