Singapore Office REITs KEPPEL REIT K71U.SICAPITALAND COMMERCIAL TRUST C61U.SISUNTEC REAL ESTATE INV TRUST T82U.SI
Singapore Property - The Office Snapshot
Retaining positive views on CCT and KREIT
We stay positive on office REITs post-3Q16.
Retain preference for CCT (top pick) and KREIT over Suntec REIT with the latter’s TP cut by 2% to reflect retail miss.
Operating trends were not exciting, but were in line with low expectations.
News flow on leasing activities showed that 2.7m sf of new office space remains unleased in the CBD. However, we believe the low supply of prime office space in 2018-20 should give the market ample time to absorb this excess.
Nonetheless, the pace of rent rebound could be tempered by completion of additional space in 2021.
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